Dodgers Bankruptcy Plan to Include Divorce Payments

Written By: Emil FleysherApril 20, 2012,

The Los Angeles Dodgers have cleared up last-minute money disputes ahead of a hearing. They did this to confirm a bankruptcy reorganization plan that provides for selling the team for $2 billion. The filing of documents took place on behalf of the Dodgers that sought to convince the judge to approve the plan. They stated that the plan would provide more than sufficient capital to ensure the long-term financial success of the team. The plan is a remarkable outcome for the Dodgers. When the case began, they did not have enough cash to meet payroll. And, they ended up in a bitter dispute with Major League Baseball.

The Dodgers responded to concerns by the team owner’s ex-wife. They said that the plan failed to specify that she will get $131 million to satisfy her divorce agreement. Although the team was not a party to the divorce agreement, the Dodgers will stipulate that she receive her money.

Baseball Commissioner Allan Selig has objected to language declaring the team owes no payments to the league for its legal costs and fees. Moreover, he argued that, under the league constitution, the Dodgers are liable for $7.6 million. The league spent it on legal fees and costs associated with the bankruptcy. The MLB objections are being addressed with a mediator. Also, they are anticipated to be resolved prior to the confirmation hearing.

If you have questions about foreclosure, loan modification, bankruptcy; or other alternatives, please feel free to call my office at 954-484-9987. Or, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.

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