Los Angeles Dodgers' owner Frank McCourt made an excellent pitch in his battle with Major League Baseball when he filed for Chapter 11 bankruptcy protection in Delaware today, a prominent bankruptcy attorney says.
"McCourt is playing this well," says Anthony M. Sabino, a Mineola, N.Y. attorney whose law practice has represented creditors in Delaware bankruptcy court.
Sabino says there is a "strong likelihood" the court will permit McCourt to sign his multi-billion dollar television deal with Fox Sports, the one Commissioner Bud Selig said he wouldn't approve because it wasn't in the best interests of the Dodgers, their fans and baseball.
"The bankruptcy process is ALL about paying creditors. They take absolute priority," Sabino says, via e-mail. "The court's power trumps Commissioner Selig and the 'best interests of baseball' rule."
McCourt, however, needs to demonstrate the Fox TV deal, reportedly worth up to $3 billion, is viable and the best thing for the Dodgers' finances, he adds.
Sabino says McCourt "chose wisely," in filing the papers in the Delaware court, which handles most of the large Chapter 11 filings, is sophisticated and "won't be awed by Selig and MLB."
"The court will do what is best to get creditors paid and the Dodgers back on a firm footing, financially speaking. Respect for MLB will come in second," he says.
The attorney predicts the proceedings will move slowly – it's unlikely much will get done before early next year even on an expedited basis – and that gives McCourt time and leverage he needs.
The court won't determine whether McCourt can hold on to controlling interest in the team in his bitter divorce proceedings with wife Jamie. Bankruptcy judges won't interfere with the California courts on the divorce and it's not the primary issue, Sabino said. "Who owns the Dodgers is the tail; the dog is … paying creditors," he says.
"McCourt is playing this well," says Anthony M. Sabino, a Mineola, N.Y. attorney whose law practice has represented creditors in Delaware bankruptcy court.
Sabino says there is a "strong likelihood" the court will permit McCourt to sign his multi-billion dollar television deal with Fox Sports, the one Commissioner Bud Selig said he wouldn't approve because it wasn't in the best interests of the Dodgers, their fans and baseball.
"The bankruptcy process is ALL about paying creditors. They take absolute priority," Sabino says, via e-mail. "The court's power trumps Commissioner Selig and the 'best interests of baseball' rule."
McCourt, however, needs to demonstrate the Fox TV deal, reportedly worth up to $3 billion, is viable and the best thing for the Dodgers' finances, he adds.
Sabino says McCourt "chose wisely," in filing the papers in the Delaware court, which handles most of the large Chapter 11 filings, is sophisticated and "won't be awed by Selig and MLB."
The attorney predicts the proceedings will move slowly – it's unlikely much will get done before early next year even on an expedited basis – and that gives McCourt time and leverage he needs.
The court won't determine whether McCourt can hold on to controlling interest in the team in his bitter divorce proceedings with wife Jamie. Bankruptcy judges won't interfere with the California courts on the divorce and it's not the primary issue, Sabino said. "Who owns the Dodgers is the tail; the dog is … paying creditors," he says.
