The much publicized and very ugly divorce of Frank McCourt has Major League Baseball investigating the possibility he will file for bankruptcy protection to maintain control of the LA Dodgers.
Although, there is no actual proof that McCourt is contemplating bankruptcy, his wife and the MLB are concerned he might choose this option to keep control of the team, at least in the short term. The MLB Commissioner Bud Selig sent someone to oversee the finances of the Dodgers three weeks ago.
Selig and McCourt’s ex-wife, who owns half the team, both have an interest in his decision to file for bankruptcy. The MLB has rules which states a person cannot maintain control of their team should they declare bankruptcy. McCourt’s ex-wife also says he can’t file, because he must have her approval.
The courts however will make their own decision and aren’t required to follow Major League Baseball regulations. McCourt has maintained that a contract with Fox would keep the team from financial troubles, but it hasn’t been approved by the MLB. A bankruptcy judge could approve the FOX deal, if it meant McCourt would be able to pay off creditors. A bankruptcy attorney might suggest a filing just so McCourt can keep the team.
Any person who has had rough financial times and risk losing everything can get the counsel of a bankruptcy attorney to outline their options. A skilled bankruptcy lawyer will know which bankruptcy structure best suits the needs if their client.
