June 27, 2011

Dodgers Go Red: Here are the initial Chapter 11 filings for the Los Angeles Dodgers, which actually entails five separate bankruptcies, involving the team and the various holding companies that own the team and the surrounding property, including Dodger Stadium. The bankruptcy was filed in the state of Delaware, which is not uncommon for high-end corporate filings, and not surprising considering the profound and deep contempt the local community has for the McCourts at this moment.

The team's largest creditor, interestingly enough, isn't the soon-to-be-ex-wife of the team owner, but is instead former team star Manny Ramirez. Being the largest creditor has certain advantages in bankruptcy court; it was from a similar position that Mario Lemieux was able to put in a bid (financed by Ron Burkle, who is also thought to be in the lead to buy out the McCourts) to purchase the Pittsburgh Penguins out of bankruptcy in the late-90's. However, since Manny, being Manny, clearly defrauded someone when he signed a huge extension of his contract shortly before failing a drug test in 2009, the team's liability to him is open to challenge.