After weeks of speculation of the fate of the Los Angeles Dodgers organization Major League Baseball and the Dodgers have agreed to a $150 million bankruptcy loan according to the Los Angeles Times.
The proposed agreement was presented to U.S. Bankruptcy Court on Friday, and will take some time to process before official. Under the terms of the contract Major League Baseball would loan the Dodgers the money to get them through the rest of the 2011 season along with 7% interest, but would not seize the team in the event of defaulted payment. The League reserved the right on any claims of "past or future violations of the MLB Rules and Regulations" that the Dodgers might have made.
Back in July U.S. Bankruptcy Judge Kevin Gross decided that the League and the Dodgers create a loan that would save the team money on interest rates and accompanying fees but would not allow the League to use the loan as leverage to remove Frank McCourt as owner of the team.
McCourt has repeatedly claimed that commissioner Selig has treated the Dodgers differently than other teams, stating that the Dodgers wouldn't have had to file for bankruptcy had Selig assisted them like he did the New York Mets, with a organization saving lifejacket-loan. McCourt's bankruptcy proceedings continue on, but at least, for now, the Dodgers may have a moments peace from their constant financial headache.