Preliminary bickering and fighting is just a prelude to a hearing scheduled for October 31, 2011, that will include testimony which could be fateful in McCourt’s ability to keep control of the Dodgers. The battle lines are already being drawn about everything from file cabinets used by an MLB appointed trustee to alleged IRS investigations into the personal finances of Frank McCourt. One of the biggest points of contention is Dodger’s proposed television rights sale which was blocked by the MLB forcing the team into bankruptcy.
The MLB is now insisting that they obtain access to the proposed sale agreement because they say that if it violates their rules, the Dodgers could face serious problems. However the bankruptcy attorneys on both sides of the battle disagree about how the proposed sale (and documents) should be handled.
Sidney Levinson, an attorney representing the Dodgers, asked why MLB was so anxious to get a copy of the broadcast contract template when Selig already has said he would reject any television deal under which McCourt would remain the Dodgers’ owner.
Glenn Kurtz, an attorney representing MLB, said Selig premised his decision in part because such a sale would violate league rules and could subject the Dodgers to what Fox Sports has called “massive” damages. Kurtz also asked how the Dodgers could ask the court for permission to sell their television rights if they couldn’t say exactly how they wanted the sale to proceed.
Bankruptcy Judge Kevin Gross hasn’t yet ruled on whether or not the MLB can get access to the television sales proposal; but that may be decided over the four day testimony starting October 31st.