As the end of June draws near and payrolls are due, the Los Angeles Dodgers have filed for filed for Chapter 11 of the U.S. Bankruptcy Code “in order to protect the franchise financially and provide a path that will enable the club to consummate a media transaction and capitalize the team.”
Dodgers owner Frank McCourt has found hardships meeting the financial obligations for the team ever since he went through a rather nasty divorce with his wife Jamie McCourt.
Frank McCourt thought he found a solution to the financial problems with the team when he was ready to sign a television deal with Fox Broadcasting. MLB commissioner Bud Selig however shot down this deal. McCourt cites this as the reason for the Dodgers going bankrupt.