Los Angeles, CA – A bankruptcy judge has reportedly approved a settlement between the Dodgers and Fox Sports, a decision that clears the way for the sale of the club.
According to MLB.com, U.S. Bankruptcy Judge Kevin Gross issued the approval in his Delaware court on Wednesday.
Back in November, Frank McCourt agreed to sell the team less than a month after being awarded sole ownership of the club in a divorce settlement. Major League Baseball and the Dodgers agreed to a court-supervised process to sell the team and its media rights to maximum the team's value.
However, the MLB.com report said Fox filed a suit because the plan to auction off the team's media rights would enrich McCourt while endangering its ability to exclusively negotiate a new contract.
The settlement approved Wednesday, according to the report, said Fox withdrew the lawsuit while the Dodgers agreed to honor their existing contract with the network. The current deal runs through 2013.
McCourt had worked out a TV rights deal with Fox Sports last year as part of a divorce settlement with his then-wife, Jamie. But the deal was rejected by MLB, which then filed a motion in bankruptcy court arguing that the Dodgers should be sold to provide a clear path toward settling the team's considerable financial woes.
Frank McCourt was seeking to auction the team's TV rights to the highest bidder without league approval, a move MLB argued was motivated by McCourt's unrealistic hope of generating enough proceeds to help meet his own personal financial liabilities.
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