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Dodgers Team Lands in Bankruptcy Court

Dodgers owner Frank McCourt today filed for bankruptcy protection for his struggling franchise.

The move, WSJ reports, sets up a showdown with Major League Baseball Commissioner Bud Selig.

McCourt filed for Chapter 11 in Delaware in an effort to save his team from being seized by MLB, which took over day-to-day operations of the club in April amid concerns over team finances, according to WSJ.

McCourt will ask the bankruptcy court to approve a long-term media rights deal that he says will help the club deal with its liquidity problems, including its inability at present to meet its June 30 payroll.

Last week, Selig rejected a proposed 17-year, $2.7 billion deal between the Dodgers and Fox Sports because McCourt planned to use about $150 million from the agreement to settle a divorce with his wife, Jamie, according to WSJ.

Fox, a unit of News Corp (the owner of W J), is unlikely to keep its offer on the table during a bankruptcy standoff, WSJ reports.

McCourt has obtained $150 million in interim financing that would allow him to meet the payroll deadline, if the bankruptcy court signs off on the financing terms, the Los Angeles Times reports.

Who are the club’s biggest creditors? The list, according to the Times, includes:

Manny Ramirez is owed $21 million;

Andruw Jones, $11 million;

Rafael Furcal, $3.7 million;

And Vin Scully, the broadcasting legend, is owed $152,000 .

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