Remember that divorce settlement reached by Frank and Jamie McCourt last week? It turns out it is null and void now, as MLB commissioner Bud Selig has rejected the Dodgers' proposed television deal with Fox, reportedly worth between $1.7 billion $3 billion. Selig issued a statement on Monday:
Mr. McCourt has been provided with an expansive analysis of my reasons for rejecting this proposed transaction. Critically, the transaction is structured to facilitate the further diversion of Dodgers assets for the personal needs of Mr. McCourt. Given the magnitude of the transaction, such a diversion of assets would have the effect of mortgaging the future of the franchise to the long-term detriment of the club and its fans.
Under the divorce settlement reached last week, now null and void with the disapproval of the television contract, up to $173.5 million of the $385 million in up front payments by Fox to the Dodgers would have been used by the McCourts. This also means that the Dodgers are unlikely to be able to make payroll next week, on June 30, without that upfront TV money, so MLB will likely seize full control of the organization soon.
Expect a flurry of lawsuits before this ordeal is settled.
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