Commissioner F ully Supports McCourt Before MPA Invalidated . February – April 2010. MLB representatives assured Mr. McCourt he had full support of MLB . May 13, 2005.
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Commissioner Fully Supports McCourt Before MPA Invalidated
February – April 2010
May 13, 2005
“Over the past year, Frank McCourt has demonstrated his steadfast commitment to building a strong and healthy franchise in Los Angeles. The success of this private placement [Tickets I] is another example of Frank’s outstanding stewardship. It is good for the Dodgers and it is good for baseball.” (Commissioner)
November 19, 2009
When asked if worried about McCourt’s ownership dispute, “Look, the Dodgers are in good hands. . . There’s no reason to get into any debate about what’s going to happen.” (Commissioner)
May 24, 2010
April 24, 2008
After commending plans for stadium improvement, “We commend Frank and Jamie McCourt for their vision and their dedication to grow the game in the 21st Century.” (Commissioner)
January 30, 2004
“There’s no doubt in my mind that [Mr. McCourt] will be a
good owner of a very storied franchise.” (Commissioner)
2004 2005 2006 2007 2008 2009 2010
December 7, 2010
McCourt’s announce separation.
Commissioner Acts in Bad Faith After MPA Invalidated
April 11, 2010
AUGUST 8, 2011
June 20, 2011
June 24, 2011
February 24, 2010
April 19, 2010
First Week of Jan.
Jan. Feb. March April May June July August 2011
June 27, 2011
December 7, 2010
Commissioner’s Authority is Subject to a Duty of Good Faith and Fair Dealing
The Major League Constitution is a contractual agreement (Article I)
“Every contract imposes upon each party a duty of good faith and fair dealing in its performance and its enforcement.” (Restatement (Second) of Contracts § 205 (1981))
Commissioner of Baseball Must Not Act Arbitrarily Faith and Fair Dealing
Various courts construing the Commissioner of Baseball’s authority have stated that such authority cannot be applied arbitrarily:
Commissioner’s Actions Must Comport with Procedural Due Faith and Fair DealingProcess
Major League ProcessConstitution Article II, Section 3
Does Not Contemplate Forced Sale of a Team
In the case of conduct by Major League Clubs, owners, officers, employees or players that is deemed by the Commissioner not to be in the best interests of Baseball, punitive action by the Commissioner for each offense may include any one or more of the following:
“A sale of the Media Rights now as proposed by the Debtors will . . . subject them to severe discipline, including possible involuntary termination of the Dodgers’ franchise under the Major League Constitution (“MLB Constitution”)
termination of the Dodgers’ franchise under the Major League
The will . . . subject them to severe discipline, including proposed Media Rights transaction also will. . ., subject them to severe discipline, including the possibility of involuntary termination of the Dodgers franchise under the MLB Constitution .
possibility of involuntary termination of the
P] will . . . subject them to severe discipline, including ursuit of the Media Rights Motion for the benefit of Mr. McCourt also conveniently ignores that the Dodgers exist only as part of Major League Baseball under the Baseball Agreements. Yet, the Debtors propose in the Media Rights Motion to breach the Baseball Agreements by seeking to install a judicial review of Major League Baseball’s approval rights over a sale of the Media Rights. Such a breach is grounds for involuntary termination of the Dodgers franchise under the MLB Constitution.
involuntary termination of the Dodgers franchise
Motion of Major League Baseball to Terminate Exclusivity ( September 23, 2011)
The Bankruptcy Code does not displace Major League Baseball’s approval rights and powers under the Baseball Agreements. Moreover, a sale of the Dodgers’ Media Rights without Major League Baseball approval would subject the Debtors to potentially severe discipline, including possible termination from the League.
possible termination from the League.
The inability of the Debtors to cure these breaches would preclude the Debtors from assuming the Baseball Agreements, which would eliminate essentially all of the Debtors’ value. Indeed, no one will pay the Debtors to broadcast Dodgers games if the Club is not part of Major League Baseball. Consequently, the Debtors’ path in this case is a dead end or worse. The only path to emergence is through a sale of the Dodgers