Via tweet from New York Times media columnist Richard Sandomir, we learn Monday morning that the Los Angeles Dodgers have filed for bankruptcy.
There isn’t much more information than that available yet today; obviously, more information will be available (and needed, to analyze the situation) as the day goes on. For now, here’s some instant analysis from Craig Calcaterra:
… for the time being, this could buy McCourt some time. Why? because a bankruptcy filing puts a halt on all legal action with respect to the bankruptcy estate (i.e. the Dodgers). McCourt will certainly argue that this will prevent a takeover from Major League Baseball, though the court may decide differently when it gets a chance to weigh in, likely in the next few days.
All of this is undoubtedly true, and I am no expert in these sorts of financial matters. What seems clear is that Frank McCourt has made an absolute mess of what was once one of the crown jewels of baseball franchises (the Dodgers may be headed for a last-place finish just two years after posting the best record in the NL; it would be their first such finish in 19 years), and commissioner Bud Selig isn’t happy about this.
McCourt’s going to try his mightiest to keep the Dodgers. Selig will likely try to take them and have them sold. Only their lawyers are likely to get rich in the end.