Fox Sports wins ruling in Dodgers bankruptcy case

Stark also said the bankruptcy court order compels Fox to negotiate with the Dodgers without the full leverage that Fox contracted for, and that issuing the stay was in the public’s interest, particularly in seeing that contractual rights are enforced.

The Dodgers sought bankruptcy protection in June after baseball Commissioner Bud Selig rejected a new TV deal with Fox that Dodgers owner Frank McCourt was counting on to keep the franchise solvent. After the bankruptcy filing, attorneys for Selig successfully fought to force the Dodgers to accept bankruptcy financing from Major League Baseball, arguing at the same time that McCourt should be forced to sell the team.

After threatening to seek bankruptcy court permission to sell the media rights without the approval of MLB, the Dodgers reached an agreement with the league that calls for a sale of both the team and the media rights.

The April 30 sale deadline in the settlement between the Dodgers and MLB coincides with the deadline for McCourt to pay $131 million to his ex-wife, Jamie, as part of their divorce settlement.

Fox Sports has argued that a sale of the team itself without the media rights will generate enough money to pay Dodgers creditors in full without subjecting the team or its new owner to damages for breaching the existing contract with Fox.

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