Fox Sports Objects to Dodgers Bankruptcy Exit Plan
Today, News Corp., the parent company for Fox Sports filed an objection against the Los Angeles Dodgers bankruptcy reorganization plan. The recent sale of the Dodgers hinges on the team being able to exit bankruptcy. The $2 billion sale of the team could fall through over the ability for Fox sports to negotiate a contract to televise the Dodgers games.
In papers filed in the US Bankruptcy Court in Wilmington, Delaware it was stated the plan does not contain sufficient information to allow Fox to ascertain whether its telecast rights are being impaired. Fox sports is also asking for written affirmation stating that Time Warner cable Inc. or any affiliates are part of the group attempting to purchase the Dodgers during the bankruptcy filing. The News Corp sports network also wants confirmation that the buyers of the team have not made any informal agreements with any other media outlet that could harm their rights.
The approval of the plan for the Dodgers to exit bankruptcy was supposed to be heard on April 13 by US bankruptcy judge Kevin Gross. The current owner of the Dodgers franchise, Frank McCourt, needs this sale of the team to be completed by April 30 according to a divorce settlement to pay his ex-wife.
Even though all this drama is being kicked up, the LA Dodgers are hoping for confirmation of the debtor’s plan of bankruptcy reorganization on schedule. A spokesperson for the Dodgers stated the debtor’s view Fox’s objection as without merit.
Over the last couple years many household names have been forced into filing bankruptcy to reorganize because of bad financial management. It will be interesting to see how the Dodgers bankruptcy filing plays out.