Los Angeles Dodgers' $2 billion sale awaits approval from MLB, court

By Jim Witters

Wilmington, Del., March 29 - The record $2 billion sale of the Los Angeles Dodgers baseball team to Guggenheim Baseball Management LLC remains on track for league approval and an April 13 hearing in the U.S. Bankruptcy Court for the District of Delaware, sources close to the case said Thursday.

According to a schedule announced in court, the debtor plans to file a supplement to its plan of reorganization on April 6 outlining the details of the terms of the sale.

A plan confirmation hearing is scheduled for April 13.

Formal announcement

The Dodgers and owner Frank McCourt announced March 27 that a deal had been reached. The buyer group includes Mark R. Walter as its controlling partner, Earvin "Magic" Johnson, Peter Guber, Stan Kasten, Bobby Patton and Todd Boehly.

McCourt and certain affiliates of the purchasers will also be forming a joint venture that will acquire the Chavez Ravine property where Dodger Stadium sits for an additional $150 million, according to a press release from the team.

Major League Baseball Commissioner Allan H. "Bud" Selig issued a statement calling the proposal "extraordinarily exciting." But official league approval has not been granted, sources said.

Under an agreement between the debtors and Major League Baseball, the sale must close before April 30.

"The interest in this franchise and its historic sale price are profound illustrations of the great overall health of our industry. This has been a long, difficult process, and I once again want to thank the great Dodger fans for their loyalty and patience," Selig said.

MLB settlement

As previously reported, the MLB agreement calls for the filing of a plan of reorganization under which the team will be sold to a buyer or group of buyers in a sale process run by financial adviser Blackstone Advisory Partners LLC.

The sale was halted late on March 27 when the two other remaining bidders failed to match or better the Guggenheim offer.

The league and the company have agreed to a resolution mechanism, conducted by mediator Joseph J. Farnan, to address any disputes that may arise from the sale of the team and the league's evaluation of prospective buyers.

The company said action to enforce any determination would be heard by the bankruptcy court.

Major League Baseball team Los Angeles Dodgers filed for bankruptcy on June 27, 2011. Its Chapter 11 case number is 11-12010.

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