bankruptcy Archives | Cordell & Cordell

McCourt petitions for lower spousal support

Los Angeles Dodgers owner Frank McCourt has asked a judge to lower the monthly spousal support payments he is required to pay his former wife during their divorce proceedings, according to multiple reports.

Last May, Los Angeles Superior Court Judge Scott Gordon ordered McCourt to pay his ex-wife, Jamie McCourt, $225,000 a month in spousal support and more than $400,000 to maintain multiple homes. However, in court documents filed last week, McCourt claims he can no longer afford to support his former wife’s extravagant lifestyle.

McCourt has reportedly paid more than $5 million to pay the mortgages of seven homes of the last year, in addition to shelling out $2.7 million in temporary spousal support. Court filings show that Jamie McCourt has refused to rent out or sell the seven properties, all of which are titled in her name.

McCourt claims that while the Dodgers are his property, the homes belong exclusively to Jamie. He has officially requested that the homes be sold in the event that the court rules that both the team and properties belong to the McCourts together.

The Dodgers filed for bankruptcy protection in June, in a move to preserve his ownership of the team despite his financial hardships. In a statement, McCourt said the team was forced to declare bankruptcy after Major League Baseball refused to approve a media transaction between the Dodgers and Fox television that would have generated millions of dollars.

Dodgers bankruptcy complicates divorce

The Los Angeles Dodgers were forced to file for bankruptcy protection in a move that Dodgers owner Frank McCourt said was caused by Major League Baseball’s refusal to approve of a media transaction between the team and Fox television.

The bankruptcy is likely to further complicate the divorce proceedings between McCourt and his wife, Jamie, who have been locked in a bitter dispute regarding ownership of the Dodgers. The McCourts had recently reached a settlement that would have allowed Frank McCourt to retain ownership of the team if MLB Commissioner Bud Selig had approved of the long-term Fox contract.

McCourt reportedly planned on using at least $10 million of the proceeds to pay Jamie, as well as for personal use, according to the New York Post.

In a statement, Frank McCourt said Selig “turned his back on the Dodgers” by denying the television contract, which reportedly would have solved the team’s financial struggles.

“I simply cannot allow the Commissioner to knowingly and intentionally be in a position to expose the Dodgers to financial risk any longer. It is my hope that the Chapter 11 process will create a fair and constructive environment to get done what we couldn’t achieve with the Commissioner directly,” McCourt stated.

Under the Chapter 11 filing, the salaries and benefits of Dodger employees will be paid and the team will operate within their existing budget to sign and acquire players. Ticket prices and other stadium amenities will also be maintained.