Baseball divorce settlement for $130 million

By October 26, 2011Divorce

On behalf of The Marks Law Firm, L.L.C. posted in Divorce on Wednesday, October 26, 2011

With the St. Louis Cardinals in the World Series, it’s difficult to remember that outside of our area, baseball fans have in many cases already turned their attention to next season.

For some Los Angeles Dodgers fans, for instance, next season can’t come soon enough. This one has been largely forgettable. The play on the field was eclipsed by distractions off the field; most notably, the ongoing drama of the divorce of team owner Frank McCourt and wife, Jamie McCourt.

The two recently announced a divorce settlement, however. The reported $130 agreement brings to an end the front-page saga that began when Frank fired Jamie from her position as Dodgers’ CEO.

Of course, the McCourt theatrics are far from over; Frank is now fighting Major League Baseball in order to hang on to his team as he goes through bankruptcy. That particular bit of theater is likely to play out over the coming months.

According to the Associated Press, the details of the divorce deal are confidential, but sources have revealed that Jamie will get $130 million in exchange for dropping her claims to half-ownership of the team and for backing her former spouse’s plan to auction off Dodgers TV broadcast rights.

The settlement allows Frank to focus entirely on his legal war with baseball Commissioner Bud Selig and the pending bankruptcy that threatens to strip McCourt of his team.

Earlier this year, Selig rejected a $3 billion deal Frank had with Fox for the TV rights. Selig claimed the deal would harm the Dodgers and baseball because about half of a $385 million upfront payment to Frank would have been diverted to a then-pending divorce settlement.

Late last year, a judge ruled that the premarital agreement the McCourts signed, in which Frank was deemed sole owner of the Dodgers, was invalid.

Source: Businessweek: “McCourts reach settlement in divorce battle,” Greg Risling, Oct. 18, 2011