Fine reporting from Bill Shaikin of the LA Times. Here are the key points:
- The settlement is contingent upon MLB's approval of McCourt's $3 billion television contract with Fox.
- If Bud Selig were to reject the agreement, the settlement would be voided and divorce court proceedings would resume.
- If Selig were to approve the agreement, Jamie McCourt has agreed not to challenge the Fox contract.
- The McCourts agreed to a one-day trial so that the judge can determine whether the Dodgers belong solely to Frank or should be considered community property.
- If the judge rules that the Dodgers are community property, the McCourts would split their assets 50-50, which would most likely force a sale of the team.
- If the judge rules that the team belongs solely to Frank, then Jamie would receive "$100 million, keep the couple's homes and receive indemnity from tax liability."
Update 1:Molly Knight via Twitter posted the following in two successive tweets:
Source: Selig unlikely to approve Fox deal partly because if judge rules team is community property and orders sale on Aug 4 then . . . the new owner is saddled with potentially below market television deal that devalues the franchise.Update 2:
Via 6-4-2, reaction from Frank and Jamie McCourt following the settlement. Here's Frank being pollyannaish:
I fully expect MLB to approve the Fox transaction. MLB has taken the position that, before they approved the transaction, they wanted to see either a settlement of the divorce, or Jamie's consent, or an order from the judge. Today, they received all three. I fully expect that they will be good to their word, and they'll approve the transaction in a timely way.Full story here.
Update 3:In a follow up to his earlier report of a settlement between Frank and Jamie McCourt, Bill Shaikin writes that before Frank can secure ownership of the Dodgers, two things have to happen:
- MLB must approve the proposed TV deal between McCourt and Fox.
- McCourt must establish that he is the sole owner of the Dodgers in a one-day trial on Aug. 4. If not, the settlement stipulates that the team must be sold.
The settlement announcement dramatically increases the likelihood of a confrontation between McCourt and Bud Selig, baseball's commissioner.Full story here.