McCourts OK divorce deal; he gets Dodgers

  • Associated Press
  • Monday, October 17, 2011 3:24pm
  • Sports

LOS ANGELES — Frank and Jamie McCourt have reached a settlement in a costly and nasty feud over control of the Los Angeles Dodgers, paving the way for a showdown in bankruptcy court between the embattled team owner and Major League Baseball.

The deal was struck between the former couple

, but the terms will not be released, according to a joint statement Monday from Frank and Jamie McCourt. The Los Angeles Times (http://lat.ms/nUPOKH ), which first reported the settlement, said Jamie McCourt would receive about $130 million.

As part of the agreement, Jamie McCourt will withd

raw her opposition to the proposed sale of the Dodgers’ media rights, a move her ex-husband says would alleviate his financial woes. Instead, she will file a motion supporting the process, according to the statement.

“From the beginning, Jamie has consistently expressed her willingness to accept a settlement, even if it required her to give up her interest in the Dodgers, the team she loves, if a fair resolution were possible,” Jamie McCourt spokesman Matthew Hiltzik said in a separate statement. “That has now been achieved through the cooperation of everyone involved and Jamie looks forward to moving on and focusing on new opportunities.”

The divorce case has been placed on hold until a bankruptcy court in Delaware determines the fate of the team. A hearing is scheduled for Wednesday and a judge will consider dueling motions over four days starting Oct. 31.

The divorce agreement removes Jamie McCourt, who had asked the divorce court to order the Dodgers sold, as an obstacle in Frank McCourt’s bid to keep ownership by selling team television rights, according to the Times.

“I think this may be a strategically sensible decision for her,” said Scott Altman, a law professor at the University of Southern California. “If he (Frank McCourt) gets $130 million out of bankruptcy, it’s hers. It reduces her risk because she doesn’t have to share proceeds from the bankruptcy case.”

The settlement now allows Frank McCourt to focus on his battle with Major League Baseball, which is seeking permission from a bankruptcy judge to file a reorganization plan that calls for McCourt to sell the Dodgers.

MLB spokesman Pat Courtney declined comment about the settlement.

Attorneys for Frank McCourt have argued a media rights sale is the best path out of bankruptcy for one of baseball’s most storied franchises.

The McCourts previously reached a divorce settlement on June 17, but the deal was contingent on approval of a proposed television contract between the Dodgers and Fox. That deal would have given Jamie McCourt $100 million and she would retain the former couple’s six luxurious homes.

But baseball Commissioner Bud Selig rejected the 17-year TV contract with Fox, reported to be worth up to $3 billion, noting in part that almost half of an immediate $385 million payment would have been diverted from the Dodgers.

On June 27, Frank McCourt took the Dodgers into bankruptcy.

Jamie McCourt subsequently lined up behind Major League Baseball and Fox in asking the bankruptcy court to reject Frank McCourt’s bid to auction Dodgers television rights.

If Frank McCourt were to prevail in bankruptcy court, it’s unclear whether the judge would allow him to tap into the TV money to pay the settlement. It’s also unknown whether the proceeds from the sale of the team would even exceed $130 million.

Some observers said one of the reasons behind the settlement may be the legal bills that have amassed over the past two years. The former couple has racked up more than $20 million in fees, according to court documents.

“This ends it,” said Los Angeles family attorney Robert Nachshin. “They stop paying divorce lawyers and she gets $130 million.”

MLB had assumed control of the club’s day-to-day operations in mid-April before the team filed for bankruptcy. Former Texas Rangers President Tom Schieffer was appointed to monitor the team on behalf of Selig, who said he took the action because he was concerned about the team’s finances and how the Dodgers are being run.

Last year, the McCourts went through a highly publicized trial that focused on a postnuptial marital agreement they had signed in 2004.

A Los Angeles judge ruled in December that the marital agreement which gave Frank McCourt sole ownership of the Dodgers was invalid, clearing the way for Jamie McCourt, who served as the team’s CEO but was fired by her ex-husband two years ago, to seek half the team under California’s community property law.

A group backed by Chinese government-owned investment banks had made a $1.2 billion offer to buy the Dodgers, but Frank McCourt has repeatedly said he’s not interested in selling the team.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Sports

X
Prep roundup for Wednesday, Dec. 4

Glacier Peak, Lake and E-W girls hoops teams move to 2-0.

Monroe's Wyatt Prohn (11) and Jackson's Seamus Williams (2) battle for a ball in a non-league game at Jackson High School on Dec. 3, 2024. (Aaron Coe / The Herald)
Monroe spoils Jackson’s boys basketball season opener

Tough rebounding cemented the Bearcats’ 72-50 victory.

X
Prep roundup for Tuesday, Dec. 3

Meadowdale holds off Bruins on boys basketball opening night.

Dan Wilson assists at a Challenger League baseball game hosted by the Everett AquaSox at Funko Field on Sunday, Aug. 23, 2024 at Funko Field in Everett. (Photo courtesy of Evan Morud / Everett AquaSox)
Mariners’ Dan Wilson to speak at AquaSox ‘Hot Stove’ event

Mariners manager Dan Wilson will be a guest speaker as… Continue reading

Former Seahawks coach Mike Holmgren was named a finalist for the Hall of Fame. (Photo courtesy of the Seattle Seahawks)
Former Seahawks coach Mike Holmgren named HOF finalist

Holmgren led Seattle to its first Super Bowl appearance and won a title with Green Bay

Ohio State falls to No. 8 seed in CFP rankings

Alabama placed above Miami, leaving the Hurricanes out of the current playoff bracket.

X
Prep roundup for Monday, Dec. 2

Snohomish, Jackson, Kamiak girls hoops teams open with wins.

Jackson senior Selena Bangerter approaches the finish line during the District 1/2 Cross Country Championships at Lakewood High School in Arlington, Wash., on Nov. 2, 2024. Bangerter finished fourth in the 4A girls race. (Taras McCurdie / The Herald)
Arlington, Jackson dominate All-League cross country honors

Arlington and Jackson dominated at Wesco cross country meets this season and… Continue reading

Seahawks quarterback Geno Smith (7) throws a pass against the New York Jets at Metlife Stadium on Dec. 1, 2024. (Photo courtesy of the Seattle Seahawks)
Geno Smith does enough to win against Jets

The Seahawks quarterback didn’t win the game, but he didn’t lose it either.

Seahawks head coach Mike Macdonald (left) stands next to assistant head coach Leslie Frazier during a practice at the Virginia Mason Athletic Center. (Photo courtesy of Rod Mar / Seattle Seahawks)
Mike Macdonald away from Seahawks, expecting first child

Seattle waives kick returner Laviska Shenault Jr. after Sunday’s fumbles.

WSU parts ways with defensive coordinator Jeff Schmedding

Cougars finished No. 90 nationally in scoring defense during regular season.

Gonzaga drops to No. 7 in AP Top 25 rankings

Loss to West Virginia caused the Bulldogs to drop in the poll.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.