Major League Baseball Commissioner Bud Selig said Wednesday that he will appoint a trustee to manage the Los Angeles Dodgers' operations, citing club owner Frank H. McCourt's handling of team finances.
In taking over control of the team, Selig is considering invoking a power to force the sale of the Dodgers on McCourt's behalf, the New York Times reported Wednesday. Selig informed McCourt that he will appoint a representative to take control of the Dodgers in the next several days, according to the announcement.
McCourt bought the Dodgers in 2003 and has reportedly been dogged by the team's financial troubles. Since 2009, the Dodgers had more than $430 million in debt, according to the Los Angeles Times. McCourt reportedly attempted to find additional financing.
"I have taken this action because of my deep concerns regarding the finances and operations of the Dodgers and to protect the best interests of the club, its great fans and all of Major League Baseball," Selig said.
As the trustee manages the team, Selig said his office will continue a "thorough investigation into the operations and finances of the Dodgers and related entities during the period of Mr. McCourt's ownership."
"The Dodgers have been one of the most prestigious franchises in all of sports and we owe it to their legion of loyal fans to ensure that this club is being operated properly now and will be guided appropriately in the future," Selig said.
One proposal, rejected by Selig, would have generated $200 million from Fox Entertainment Group, using the club's cable television rights as collateral for a loan, according to the Los Angeles Times. The paper reported last week that McCourt was able to get a $30 million loan from Fox to meet payroll.
McCourt is also in the middle of divorce proceedings that could determine if his wife, Jamie McCourt, has ownership of the team, according to court documents.
A Los Angeles divorce court tossed a 2004 marital property agreement in December that would have given McCourt sole ownership of the Dodgers. The decision cleared the way for Jamie McCourt, a business woman and lawyer, to seek partial ownership of the team.
Jamie McCourt, who was fired as CEO of the Dodgers in October 2009 on the day she filed for divorce, reportedly released a statement on Selig's decision.
In taking over control of the team, Selig is considering invoking a power to force the sale of the Dodgers on McCourt's behalf, the New York Times reported Wednesday. Selig informed McCourt that he will appoint a representative to take control of the Dodgers in the next several days, according to the announcement.
McCourt bought the Dodgers in 2003 and has reportedly been dogged by the team's financial troubles. Since 2009, the Dodgers had more than $430 million in debt, according to the Los Angeles Times. McCourt reportedly attempted to find additional financing.
"I have taken this action because of my deep concerns regarding the finances and operations of the Dodgers and to protect the best interests of the club, its great fans and all of Major League Baseball," Selig said.
As the trustee manages the team, Selig said his office will continue a "thorough investigation into the operations and finances of the Dodgers and related entities during the period of Mr. McCourt's ownership."
"The Dodgers have been one of the most prestigious franchises in all of sports and we owe it to their legion of loyal fans to ensure that this club is being operated properly now and will be guided appropriately in the future," Selig said.
One proposal, rejected by Selig, would have generated $200 million from Fox Entertainment Group, using the club's cable television rights as collateral for a loan, according to the Los Angeles Times. The paper reported last week that McCourt was able to get a $30 million loan from Fox to meet payroll.
McCourt is also in the middle of divorce proceedings that could determine if his wife, Jamie McCourt, has ownership of the team, according to court documents.
A Los Angeles divorce court tossed a 2004 marital property agreement in December that would have given McCourt sole ownership of the Dodgers. The decision cleared the way for Jamie McCourt, a business woman and lawyer, to seek partial ownership of the team.
Jamie McCourt, who was fired as CEO of the Dodgers in October 2009 on the day she filed for divorce, reportedly released a statement on Selig's decision.