The Los Angeles Dodgers won court approval Tuesday to use as much as $60 million of a bankruptcy loan after Major League Baseball dropped its opposition because of changes made in the loan’s terms.
A requirement that the Dodgers sell television rights within six months was deleted and a potential fee for the lender was cut to $250,000 from $4.5 million, lawyers for the team said at a hearing in U.S. Bankruptcy Court.
The team’s lawyers reached an agreement on the changes with MLB attorneys after the two sides met for more than an hour during a break in the hearing.
MLB said in a court filing that Dodgers owner Frank McCourt didn’t have authority to put the baseball team into bankruptcy and asked to replace the team’s proposed rescue loan with a cheaper one.
A person familiar with Major League Baseball’s plans says the league “probably” will file a motion to seize the cash-strapped Dodgers.
Baseball’s constitution allows commissioner Bud Selig to take control of a team that seeks Chapter 11 protection. MLB first must file a motion seeking termination of the franchise, and the person says that is “probably going to happen.”
On Tuesday, U.S. Bankruptcy Judge Kevin Gross gave interim approval to borrow $60 million after approving motions to pay Dodgers employees and two critical vendors. The team must return to court next month to borrow more under a proposed $150 million facility.
FORMER TWINS PRESIDENT FOX DIES
Former Minnesota Twins team president Howard Fox died at age 90.
Fox worked for the Twins for more than 50 years, starting as general manager of a minor league affiliate for the Washington Senators.
He is credited with assembling the management team that led the Twins to their first World Series title in 1987.
The Twins say Fox died on Tuesday in hospice care near his home in Orlando, Fla.
The Supreme Court won’t revive Roger Clemens’ lawsuit against his former personal trainer for claiming the trainer injected him with steroids and human growth hormones. The high court refused to hear an appeal from the seven-time Cy Young winner, who has an upcoming perjury trial in Washington. … Padres prospect Donavan Tate has been suspended 50 games following his second positive drug test. The 20-year-old Tate was the third overall pick in the 2009 draft. … Indians outfielder Shin-Soo Choo could miss up to 21/2 months after having surgery on his broken left thumb. … Yankees shortstop Derek Jeter ran the bases for the first time since going on the disabled list with a strained right calf. … The Dodgers shut down closer Jonathan Broxton because of a bone bruise in his right elbow. Manager Don Mattingly said he would rest for three weeks before returning to rehab.