Path for Dodgers sale cleared as judge OKs deals with MLB, Fox

U.S. Bankruptcy Judge Kevin Gross on Wednesday approved the Dodgers' settlements with Major League Baseball and Fox Sports, clearing the most significant legal obstacles from the pending sale of the team.

The approvals conclude an 807-day period in which Dodgers owner Frank McCourt had opposed his ex-wife, MLB and/or Fox in court. He now has settled with all three parties.

McCourt and his ex-wife, Jamie, filed for divorce on Oct. 27, 2009, and he vowed the Dodgers would remain his. After battles in divorce court and Bankruptcy Court, McCourt has agreed to sell the Dodgers by April 30, the same date by which he must pay his ex-wife $131 million.

"We have a relatively short time left for the sale process," Gross said. "The settlement will allow the process to proceed without distraction."

The Dodgers are expected to command a price above -- perhaps far above -- the $845 million paid for the Chicago Cubs in 2009, the current record for an MLB franchise. With civic icons, sports legends and assorted billionaires lining up in a star-studded pursuit that includes the likes of Magic Johnson, Joe Torre and Peter O'Malley, McCourt believes the Dodgers might even fetch double the price paid for the Cubs.

"From what I read in the papers -- and I can't avoid the papers -- there are a lot of people interested," Gross said.

Each bidder must pay $25,000 to MLB, covering the league's cost to investigate a prospective buyer, an MLB attorney said Wednesday. 

Gross saluted attorneys on all sides and in particular retired U.S. District Court Judge Joseph Farnan, the mediator who shepherded the Dodgers' settlements with MLB and Fox.

"I want to congratulate everyone," Gross said. "I know it has been a tough case and, at times, an emotional one. The fact that the parties were able to put their differences aside and enter a settlement that clearly is in everyone's best interest is a credit to all of you."

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Photo: Frank McCourt. Credit: Luis Sinco / Los Angeles Times

Fox seeks stay of 'legally unprecedented' TV-sale order

Fox Sports asked Wednesday that the Dodgers be barred from selling their television rights pending an appeal of what the television company called "a legally unprecedented order that is economically disastrous for Prime Ticket and completely unnecessary to the upcoming team sale."

U.S. Bankruptcy Judge Kevin Gross ruled last week that the Dodgers could sell their television rights along with the team, despite a contract with Fox that prevents the team from negotiating with another broadcast outlet until Nov. 30, 2012.

"Although it is black-letter law that a bankruptcy court cannot rewrite a debtor's contract ... the bankruptcy court did exactly that," according to the Fox filing in U.S. District Court in Wilmington, Del.

Gross agreed with the Dodgers' position that advancing that date to Jan. 19 was "not material" to the contract and could help command a higher price for the sale of the team, which owner Frank McCourt must complete by April 30.

In its filing, Fox asserted the contractual rights at issue were crucial to the company's chances of retaining the Dodgers' television rights. In an echo of an argument that failed to sway Gross, Fox claimed that an early negotiation would increase the likelihood of the company losing the Dodgers' rights and ultimately closing Prime Ticket, triggering a damage claim that could threaten the team's ability to repay its creditors.

"This will result in Prime Ticket asserting a ... claim of at least $1 billion, which will render the debtors' estates insolvent and destroy any hope of rehabilitation," according to the Fox filing.

Fox can't put Bud Selig on witness stand, judge rules

For the second time in the Dodgers' bankruptcy proceedings, Bud Selig has avoided taking the witness stand.

Selig would have testified this week had the Dodgers and Major League Baseball not reached an agreement for Dodgers owner Frank McCourt to sell the team. With Fox Sports now fighting the Dodgers and their plan to sell their television rights along with the team, Fox wanted the commissioner to testify at a hearing next week.

However, in keeping that hearing to the narrow issue of whether the Dodgers should be allowed to sell those rights ahead of schedule, U.S. Bankruptcy Judge Kevin Gross ruled Wednesday that Selig, McCourt, MLB Executive Vice President Rob Manfred and two Dodgers executives would not have to testify. Each side will be allowed to call two media-industry experts.

Gross said the Dodgers would have the burden of proving why the team should not have to abide by its current contract with Fox.

Gross also denied Fox's request that he hear its motion to dismiss the Dodgers from bankruptcy before deciding whether to grant the Dodgers permission to sell their television rights. The latter issue will be heard Dec. 7-8, with the dismissal issue set for Dec. 27.

Gross also set a Feb. 8 hearing to put a dollar figure on Fox's potential damages from an early sale of the television rights, in the event he permits the sale.

The Dodgers' current television contract forbids the team from negotiating with any other media outlets before Nov. 30, 2012. McCourt has agreed to sell the team by April 30, and his attorneys say the sale price would be maximized if potential buyers knew exactly how much television revenue would flow their way.

Fox seeks immediate dismissal of Dodgers from bankruptcy

Fox Sports on Friday asked that the Dodgers be discharged from bankruptcy immediately, saying that owner Frank McCourt need not pursue a plan to market the team's television rights because he can repay his creditors in full now by selling the team.

In a filing in U.S. Bankruptcy Court, Fox said McCourt would be able to sell the Dodgers "for a handsome price," either with the current television contract intact or with a new owner negotiating a new television deal.

"Neither option requires these bankruptcy cases to continue," the filing read.

The Dodgers have asked for permission to market their television rights, thus enabling prospective buyers to learn the worth of those rights and perhaps make a higher bid for the team. Fox has asked the court to enforce the current contract, which forbids the Dodgers from negotiating with other media outlets before Nov. 30, 2012.

In his sale agreement with Major League Baseball, McCourt promised to identify a new owner by April 1 and close the deal by April 30.

"With the settlement with MLB and the impending sale of the Dodgers, it is time for Mr. McCourt to stand down," the Fox filing read.

The Dodgers responded with a nine-word statement: "Simply put, an act of utter desperation by Fox."

In this filing and others during the week, Fox made clear its unhappiness with MLB -- "Prime Ticket's former ally," as Fox put it -- in the league's failure to include the television company in settlement discussions and in leaving Fox to fight for itself once McCourt agreed to sell the Dodgers.

"The telecast rights became the bargaining chip between MLB and Mr. McCourt to overcome Mr. McCourt's refusal to sell the Los Angeles Dodgers, despite MLB's threats to exile the team from the league," the Fox filing read. "In effect, value paid for by Prime Ticket is to be auctioned to the highest bidder, and the proceeds enjoyed by Mr. McCourt in exchange for having relinquished team control."

Fox cited the signing of Matt Kemp to a $160-million contract earlier Friday as evidence that the Dodgers are "not a franchise hampered by financial distress" and called the bankruptcy filing "an elaborate contrivance by a desperate McCourt" to generate more cash for himself. Fox alleged the only reason for McCourt to sell the Dodgers' television rights now would be to fund "his divorce, his lavish lifestyle and his other personal obligations."

In underscoring its argument that the Dodgers' continued presence in bankruptcy would benefit only McCourt, the Fox attorneys quoted a judge's opinion in an unrelated case: "Bankruptcy laws were simply not intended to be used as a sword by the rapacious."

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Is Brewers owner Mark Attanasio interested in buying Dodgers?

As questions go, this one is pretty straightforward: Are you interested in buying the Dodgers?

Mike DiGiovanna of The Times put that question to Milwaukee Brewers owner Mark Attanasio on Wednesday. Attanasio, who lives in Los Angeles, did not answer yes or no.

"I'm committed to Milwaukee," Attanasio said. "We have a very good thing going on here."

The Brewers, playing in baseball's smallest market, sold more tickets than the Dodgers this season. The Brewers advanced to the National League Championship Series this season, their second playoff appearance in four years after a 25-year postseason drought.

Attanasio is thought to be intrigued by the Dodgers opportunity but wary of leaving the Brewers after bringing them back to prominence. He and his wife often say how much they enjoy the Milwaukee community.

He has kept tabs on the Dodgers sale process.

"Every day there's another name" of another prospective owner, he said. "The Dodgers are a storied franchise."

Full statement on Dodgers sale

The Dodgers and Major League Baseball issued a joint statement late Tuesday, confirming that owner Frank McCourt has agreed to sell the team. The statement follows:

"The Los Angeles Dodgers and Major League Baseball announced that they have agreed today to a court supervised process to sell the team and its attendant media rights in a manner designed to realize maximum value for the Dodgers and their owner, Frank McCourt.  The Blackstone Group LP will manage the sale process."

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Frank McCourt agrees to sell Dodgers

Frank McCourt agreed Tuesday to sell the Dodgers, abruptly surrendering the team after fighting to retain it over two years and in two courts.

McCourt and Major League Baseball have agreed to seek approval from the U.S. Bankruptcy Court for an auction of the Dodgers. The sale is expected to include the team, Dodger Stadium and the surrounding parking lots, a package bought by McCourt for $421 million in 2004 and likely to sell for two to three times as much now.

The league hopes a new Dodgers owner can be in place by opening day.

The new owner would be the third since Peter O'Malley sold the team to News Corp. in 1998. The Dodgers had remained in the O'Malley family since its patriarch, Walter, moved the team from Brooklyn to Los Angeles in 1958.

Photos: The Dodgers and the McCourts

The sale agreement caps what might be the most tumultuous season in club history, which started with a fan nearly beaten to death in the Dodger Stadium parking lot and ended with the league charging McCourt with "looting" $189 million in team revenue for personal use. The Dodgers called that allegation "inflammatory" and unsupportable.

In the interim, the Dodgers played before a half-empty stadium, with McCourt claiming the league had spooked fans by raising unwarranted concerns about stadium security and the league claiming fans had refused to support McCourt's ownership.

McCourt took the team into bankruptcy in June. McCourt and Commissioner Bud Selig had been scheduled to testify at a trial this week, but the court postponed the proceedings to allow settlement talks to proceed.

We'll have more soon at latimes.com/sports.

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Photo: Dodgers owner Frank McCourt. Credit: Allen J. Schaben / Los Angeles Times

Bud Selig would tell you about Frank McCourt, but ...

Commissioner Bud Selig called a news conference before Game 7 of the World Series on Friday, and why not? He was the man in charge of the sport that had America buzzing all day, with fans from coast to coast rehashing Thursday's memorable Game 6 and asking one another, "Did you see that?"

Selig told reporters he would answer any and all of their questions after a few opening remarks.

"Give me five minutes or so, and you can ask whatever you want," Selig said.

And Selig talked about David Freese, and Mike Napoli, and this amazing postseason, and baseball's robust attendance, and ... eventually, he let reporters ask whatever they wanted.

So Kevin Baxter of The Times asked Selig whether he was optimistic that he could reach a settlement with Dodgers owner Frank McCourt that would end the Bankruptcy Court battle and allow the team to be sold.

"Well, good for you, it only took one damn question to get to Frank McCourt," Selig said, as laughter rippled through the room. "If my wife wasn't here ...

"We're in litigation, as I've told you on a myriad of occasions. I understand the question, and we'll keep working. That's all. There's nothing more I can say, nothing more I should say. But as all of you understand, once litigation arises — I don't like to be restrained on any subject, especially today, but that's all I can say."

You can read a transcript of Selig's news conference here.

— Bill Shaikin

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Dodgers to bankruptcy judge: Six more months, please

The Dodgers asked U.S. Bankruptcy Court Judge Kevin Gross to extend their exclusive window to propose a reorganization plan for the team until April 25, according to a court filing late Monday.

The request, if granted, would enable embattled owner Frank McCourt to control the Dodgers through the start of the 2012 season.

Major League Baseball has asked Gross to terminate the Dodgers' exclusivity so the league can propose a reorganization plan of its own — that is, to get the team sold this winter. Gross wrote last month that he intended "a prompt disposition of the key issues" so that the Dodgers could "utilize the approaching off season to prepare for the 2012 season."

The Dodgers said in their filing that they needed the extra time because they have been spurned by MLB and Fox Sports in efforts to hold discussions and build consensus on a reorganization plan.

"In its place, those parties have substituted no-holds-barred litigation," according to the filing.

Dodgers bankruptcy: Creditors ask judge to deny TV rights sale

From the day he took the Dodgers into bankruptcy, owner Frank McCourt has said that selling the team's television rights would enable him to put the Dodgers on solid financial ground, including full payment for all creditors.

On Monday, the creditors disagreed. The official creditors' committee asked U.S. Bankruptcy Judge Kevin Gross to deny the Dodgers their proposed television rights auction, arguing that the prospect of a lawsuit from Fox Sports and opposition from Major League Baseball could jeopardize the money available to repay creditors.

"The committee cannot gamble the 100% recoveries of its constituents on such a risky proposition," lawyers for the committee wrote in a court filing.

Instead, the committee said, "A prompt sale of the team is the most prudent course of action."