Baseball Commissioner Rejects Dodgers’ TV Deal

Bud Selig, Major League Baseball’s commissioner, rejected a proposed cable television deal by the Los Angeles Dodgers on June 20. That scrambled the team’s financial future and voided a divorce agreement reached June 17 by Frank McCourt, the Dodgers’ owner, and his wife, Jamie, who wants the team to be declared half hers.

Selig said in a statement that the 17-year television deal with Fox was “structured to facilitate the further diversion of Dodgers assets for the personal needs of Mr. McCourt” and would mortgage the team’s future. Frank McCourt has blamed Selig’s refusal to approve the deal, which is worth $2.5 billion to $3 billion, for his financial problems. In April, Selig took control of the team and installed a trustee, Tom Schieffer, to run it. Selig’s decision is likely to reinforce McCourt’s fear that baseball will seize the team and sell it against his wishes, and could send McCourt to federal court to fight the commissioner. A flashpoint in the deal is a $385 million upfront loan from Fox that would reduce the annual rights fee to the team. Only $211.5 million of the $385 million would finance team operations. Of the rest, $80 million would repay debt, which Major League Baseball says is too high; $23.5 million would repay most of a $30 million personal loan from Fox that McCourt used to meet payroll last month; $10 million would pay the McCourts’ legal fees; and $10 million would be spent as they desire. McCourt could use another $50 million of the Fox money to bankroll a $100 million payment to his wife if the team were declared his property by Judge Scott Gordon of Los Angeles Superior Court, who is overseeing the divorce.