The Los Angeles Dodgers, the bankrupt baseball team owned by real estate developer Frank McCourt, have agreed to be sold in bankruptcy court, ending their long-running battle with Major League Baseball.The Dodgers had been pushing for a bankruptcy sale of only their future media rights, which they said could have raised the cash that McCourt needed to hold on to the team. The league argued from the beginning that it would only be satisfied by a sale of the team.
According to a joint statement by the team and the league issued early on Wednesday, both the team and the media rights will go up for sale in a process that will be run by the Dodgers’ financial adviser, Blackstone Group LP.
One potential suitor could be Ron Burkle, the investor and head of the Yucaipa Companies private equity firm.
When asked about the Dodgers on Wednesday, he did not address buying the team directly but said in a statement emailed by a spokesman, “It is one of the best brands in all of sports, and like many people, I’d be proud to be part of its future.”
The Dodgers filed for bankruptcy in June after the league’s commissioner, Bud Selig, rejected a proposed sale of the team’s broadcast rights to generate desperately needed cash.
Once in bankruptcy, the Dodgers continued to press for the sale of the broadcast rights, saying that it would raise enough cash to get the team out of bankruptcy protection.
The league argued in court, however, that the only way to end the Dodgers’ bankruptcy was to force McCourt to sell the team. The league had tried to oust McCourt as owner of the franchise by arguing he was draining the team’s financial lifeblood.
Fox Sports, which had a contract giving it the right to broadcast Dodger games, opposed an auction of the TV rights and is trying to hold on to those rights. Under a 2001 contract with the Dodgers, Fox said in court papers, it has exclusive negotiating rights through November 2012, giving it broadcast rights through the 2013 season.
The bankruptcy filing allowed the Dodgers to void their broadcast contract with Fox.
Fox, part of News Corp and a one-time owner of the team, is not interested in buying the Dodgers, according to a different source familiar with the matter.
Another possible suitor for the media rights is Time Warner Cable, but that company would not be interested in the team, according to a source familiar with the situation.
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