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The Major League Baseball team the LA. Dodgers saw a period of turmoil for the year 2011 to 2012. This problem was caused thanks to the mismanagement of the club and its finances by the owner of the baseball club. Bad decisions were made in terms of investment and procuring funds via business ventures outside of baseball.
The problem the sports club faced was a fault of the owner’s and the baseball commissioner decoded the team’s owner was not able to continue successfully running the team. The last bad decision he made that cemented his faith was rejecting a TV contract in a time the club needed finances. Thanks to his management the club was not able to meet their payroll and eventually they had to file for bankruptcy. They had to borrow from the MBL to keep the baseball club operating. This might have been the straw that broke the commissioner’s back because it was not long after the club sold. The team was sold to the Guggenheim Baseball Management LLC a year after negations.
The former owner of the major league baseball team the Los Angeles Dodgers went through a divorce with his wife that was a focal point of the debacle. It was later discovered that the former owner and his wife had been withdrawing money from the club’s finances for their own personal usage without paying any taxes.
The combination of withdrawing money from the club and not taking advantage of profitable business ventures was very devastating. This was a sure remedy to get the club in financial problems. Borrowing money was the only way to keep the club going but it was too far gone and the commissioner had already disgruntled by the actions of the owner and the decline of a club that has been a prestigious one for many a years.
The commissioner’s decision to put the ownership of the baseball club into the hands of more capable people was truly welcomed by all who adore the club and what it stands for. The decision was made based on the commitment fans of the club are and his belief that they are worth more than to watch their club go belly up with the inability to do anything to save the franchise that many of them grew up loving.
In his response, the former owner stated that the club’s finances were in compliance with the guidelines set by the MBL. A spokesperson for the then Dodgers expressed that the takeover of the sports club by the commission was irresponsible and was unexpected because the club finances were in compliance.
The former LA Dodgers owner argues that the state the club reached was all thanks to the actions of the commissioner. A TV contract was made between FOX Sports Net and the baseball club that would worth almost three billion dollars over a seventeen year span. This venture was denied approval by the baseball commissioner. This contract could have been the life line the club needed but it was declined by the commissioner and the former owner was not about ready to overlook the decision made.
Not getting the contract at that time the baseball club had to file for bankruptcy. In the hearing the court decided that the team would be seized and sold. The former owner wanted access to certain club files and the court decided it was not the best decision for them to make and he was denied access. The club was sold in November of 2011 in anticipation of finding a new owner before the start of the new season.
The team was sold along with the stadium and parking lots. There are some people that believe that the MBL was wrong in the way they handled this particular case. They believe that the entire incident was just some personal vendetta the baseball commissioner had against the then owner of the baseball club.
It matters not the beliefs of fans and critics alike, the club has a new owner and the fans have all but forgotten about the debacle. The fans have returned to cheering for the team the love and cherish some much. Not all these stories end in a happy ending but I am sure the fans, the players and the league are glad this one did.
