FanPost

Is it two strikes against Frank, maybe

Judge Gross issued his ruling today and the main thing you should take away from that is that there will be no more concerns about payroll, Vin Scully not being paid or Manny standing by the Dodger entrance with his hands out.

MLB will provide funding starting at $150M but they have said there is more there if needed. 

The second thing you should take away, MLB is not going to make any rash moves to show any intent to take over the Dodgers.  In fact, it is doubtful they will insist to have their monitor reinstated at this point.  Primarily, this is because the Court is really the monitor when it comes to big ticket items, they will make sure that the creditors get paid and not Frank McCourt.

MLB likes the threat of its best interest in baseball power but only when they know no one will challenge it.  And since this power has not been tested in a U.S. Bankruptcy Court, I don't think they are in any hurry to see if it holds up under scrutiny.

So MLB will provide the funding (that McCourt wanted from them a few months ago but could not get then) but the last pitch may be thrown in August when the parties convene to hear arguments that the Dodgers should not only be allowed to circumvent MLB rules by having the Court give them the power to auction off their media rights, this would also conflict with the Dodgers existing contract with Fox.

That seems too high a hurdle to pass, especially since the Court may feel that there should be enough money available to both take care of the creditors and pay back MLB if McCourt's interests are excluded from this equation.

While I can see an end game, I still unsure of how the Court gets there.  Selling the team to make the creditors whole is certainly an option but the Dodgers will argue they can achieve that and still own their business if they can sell the TV rights.  MLB's argument will be those rights will be undervalued if sold now (and also but I don't know how they can raise this, if those rights are sold, the team's potential sales price drops).

As it has been throughout this saga, if McCourt ever decided to just leave and sell, I think MLB would do everything possible to get him paid off and even run the team for a few months while conducting the sale.  At this point, I can see MLB being in charge next season but a new buyer seems unlikely.

So stay tuned but relax for the rest of the month, the next big day in Court will be in August. 

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