It doesn't happen very often, but it looked like the only way forto survive through these financial difficulties. McCourt, as the leader of the Los Angeles Dodgers organization, filed for bankruptcy protection Monday that would pit his ownership interest in jeopardy with Major League Baseball.
According to a statement released right after the Federal court filing in Delaware, McCourt said that he has obtained $150 million in bridge funding to meet this Thursday's payroll deadline if the court approves. He continues his control of the club through the bankruptcy proceedings unless and until the court deems otherwise.
Under the MLB constitution, an ownership act of filing for bankruptcy triggers the ability of the commissioner to strip McCourt of ownership. However, bankruptcy court proceedings generally override MLB rules.
The list of creditors and amounts must be part of the filing when a person or company seeks the courts protection.
The list of creditors includes much of the current Dodgers roster, Hall of Fame broadcaster ($152,778), the city of Los Angeles ($240,563 in tax debt) and two players yet to play for the Dodgers (prospects Zach Lee at $3.4 million and Alexander Santana at $499,500).
In a statement issued on McCourt's behalf, the filing was said to have been done "in order to protect the franchise financially and provide a path that will enable the Club to consummate a media transaction and capitalize the team."