When it comes to filing bankruptcy, the general rule of thumb is, the more valuable asset, the more it’s going to cost. A couple months ago, it was reported that bankruptcy attorney Bruce Bennett read a letter from Los Angeles Dodgers fan regarding the team’s bankruptcy filing and Frank McCourt was billed $97.50 for a 10th of an hour. This bankruptcy attorney charges the Dodgers’ organization $975 an hour to be the lead bankruptcy lawyer. Already Frank McCourt and the Dodgers have already run up to $1.7 million bill in legal fees. When it comes to filing bankruptcy for such a valuable organization you can expect the costs to go hand-in-hand.
In 2010, the Texas Rangers had to file for bankruptcy, running up fees in the neighborhood of over $5 million for roughly 3 months worth of work. Compared to the Dodgers, this was a simple quick bankruptcy. With the Dodgers bankruptcy to be a long legal battle, you can expect that the bankruptcy attorney fees will quickly mount up.
There is much scuttlebutt floating around that Frank McCourt should sell the Dodgers and avoid the media blitz of dragging the Dodgers through a long drawn out bankruptcy. On August 30, 2011 a group of Chinese investors offered $1.2 billion for the Dodgers. This offer was led by Bill Burke, the founder of the LA Marathon who put together a group of state-owned Chinese institutions to come up with the money.
Since the offer came in, Frank McCourt has not responded. With the Dodgers’ bankruptcy, his high publicized divorce and everything going on in his life currently it’s no surprise. It was reported, that McCourt was hoping to auction off the TV rights to the Dodgers. He believed the TV rights are worth in the neighborhood of $1 billion and could possibly solve the Dodgers financial problems, getting them out of bankruptcy. This is no longer up to him, but now will be in the hands of the bankruptcy judge.