Concerned MLB takes over operation of Dodgers

Major League Baseball, citing "deep concerns" over the Los Angeles Dodgers' finances, is taking over operation of the National League club. Major League Baseball commissioner Bud Selig said in a statement on Wednesday that he would appoint a representative to oversee the "business and the day-to-day operations of the Club." His decision followed a report by the Los Angeles Times that owner Frank McCourt had arranged a $30 million loan from Fox, the team's television partner, to meet payroll obligations. "I have taken this action because of my deep concerns regarding the finances and operations of the Dodgers and to protect the best interests of the Club, its great fans and all of Major League Baseball," Selig said. "My office will continue its thorough investigation into the operations and finances of the Dodgers and related entities during the period of Mr. McCourt's ownership. I will announce the name of my representative in the next several days." Selig said Major League Baseball owe it to Dodgers fans "to ensure that this club is being operated properly now and will be guided appropriately in the future." Dodgers general manager Ned Colletti called it "a sad day for baseball and a sad day for the Dodgers". Dodgers manager Don Mattingly said he saw the news on TV before the Dodgers hosted the Braves on Wednesday. He and Colletti spoke to the players before the game. "It's hard to imagine it would happen somewhere like the Dodgers, but there's crazy stuff going on everywhere. You're seeing monster major banks going down, so obviously it can happen," Mattingly said before the game against Atlanta at Dodger Stadium. Seizing control of the team is an extreme move by Selig. Before Tom Hicks sold the Texas Rangers last year, Selig appointed someone to monitor the team, but Hicks retained control of the team. When Major League Baseball suspended George Steinbrenner from the Yankees in 1990 and forced Marge Schott to sell her controlling interest in the Cincinnati Reds in 1999, the owners were allowed to choose who took over control. The debt-strapped club has been caught in the middle of the bitter divorce of Frank and Jamie McCourt. Jamie McCourt filed for divorce after 30 years of marriage in October of 2009, a week after Frank McCourt sacked her as the team's chief executive. Ownership of the team has been at issue in the divorce case. In December, a Los Angeles judge invalidated a post-nuptial agreement giving Frank McCourt sole ownership of the Dodgers, allowing Jamie McCourt to seek one-half of the club. According to court documents filed in the divorce, Frank McCourt has been under financial pressure since 2009, when he made three failed attempts to gain additional financing. Court records show the Dodgers had more than $430 million in long-term debt as of 2009. Season ticket sales have also fallen, according to court documents. The club's reputation was hit this season by the severe beating of a San Francisco Giants fan in the Dodgers car park after the Opening Day game on March 31. Bryan Stow, a 42-year-old father of two, was left with a severe head injury and remains in a Los Angeles hospital. The Los Angeles Police Department has stepped up its presence at Dodgers games, with police chief Charlie Beck calling on the team to pay for the deployment of extra uniformed officers. Meanwhile, the McCourt divorce remains unresolved, and Selig has neither approved nor rejected a proposed 20-year television contract with Fox that McCourt presented as a long-term financial solution. Selig's move regarding the Dodgers could be seen as a possible precedent to be followed if the New York Mets encounter further financial difficulties. Mets owners Fred Wilpon and Saul Katz have been sued by Irving Picard, a trustee for victims who lost $20 billion in the Bernard Madoff scandal. The lawsuit says Wilpon and Katz made fortunes off investing in Madoff to finance their business interests, including the Mets. The Mets borrowed $25 million last year from Major League Baseball.