FOX Wants Dodgers' Bankruptcy Case Dropped

(NewsCore) - FOX Sports Net has asked a federal judge to dismiss the Los Angeles Dodgers' bankruptcy case, contending the team is solvent and using bankruptcy laws to avoid its contractual obligations.

The move is part of the growing battle between the storied baseball franchise, led by owner Frank McCourt, and the media company that owns its valuable local television rights.

The Dodgers are now being sold in a process overseen by the US Bankruptcy Court in Delaware. The franchise wants to put its future television rights on the market to maximize its value. FOX is trying to block that effort, arguing it violates its current contract with the Dodgers.

FOX Sports Net is owned by News Corp., which also owns The Wall Street Journal and NewsCore.

The litigation could delay what the Dodgers and Major League Baseball were hoping will be an expedited process of selling the team.

According to people involved with the process, potential bidders are being asked to sign non-disclosure agreements in the coming days. Bid books are scheduled to be distributed shortly after Thanksgiving, with a first round of bidding planned for early January. Throughout the process, MLB will be evaluating bidders for ownership approval. The parties want to close the deal by April 30.

In a statement Friday, the Dodgers accused FOX of trying to use several lawsuits to keep competitors away from one of its prized assets. "The Dodgers and its management team will not be intimidated or distracted from maximizing the value of the Dodgers' assets in connection with the impending sale," the team stated. The team said FOX's challenges are without merit.

The Dodgers called the motion to dismiss the bankruptcy "an act of utter desperation by FOX."

FOX wants McCourt to have to sell the team without an auction for the media rights. "The team can be sold at a handsome price that will take care of all creditors without FOX having its rights violated, but McCourt continues to abuse the bankruptcy process in hopes of enriching himself," Richard Stone, a lawyer for FOX, said.

Read more: Wall Street Journal