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Frank McCourt loses round in bankruptcy court

July 22, 2011 | 11:52 am

Fabforum Frank McCourt cannot use a loan he arranged to run the Dodgers for the rest of the season, a bankruptcy judge ruled Friday.

The embattled Dodgers owner suffered a significant setback when he was ordered to negotiate with Major League Baseball for a loan.

McCourt had argued he should not have to accept financing from Commissioner Bud Selig, who he feels is intent on stripping him of his ownership of the Dodgers.

DOCUMENT: Bankruptcy judge’s ruling against Frank McCourt

A loan from MLB, however, should save the Dodgers millions in interest and fees.

The ruling does not mean McCourt will lose ownership of the Dodgers. Instead, the ruling sets the stage for the parties to argue the core issue in this case: Can McCourt auction the Dodgers' cable television rights to pay off the team's creditors and remain the owner, or can Selig get the court to enforce the league rules to which McCourt agreed, including rules that grant Selig the right to approve all television contracts and the right to strip an owner of his team upon filing for bankruptcy?

We'll have more later at


Photos: The Dodgers and the McCourts

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Dodgers bankruptcy: What is Wednesday's hearing all about?

-- Bill Shaikin

Photo: Frank McCourt in a photo taken in April. Credit: Mary Altaffer / Associated Press.