Kevin Gross, the U.S. Bankruptcy judge presiding over the Dodgers’ case, ruled in their favor allowing the TV rights to be sold along with the team. FOX has a deadline of January 14, 2012 to negotiate a new TV contract with the Dodgers, but after which the Dodgers can look at other bids from broadcasters. The current contract reads that the Dodgers cannot negotiate with other broadcasters until after November 30, 2012.
The hearing this past Wednesday and Thursday included testimony from witnesses from both sides. Judge Gross felt that moving the sale of the television rights up would help in the sale process and satisfy the creditors of the Dodgers. The creditors are owed at least $599 million. The Dodgers’ attorney attests that it will increase the value of the team.
FOX also contends that the Dodgers would be liable for substantial damages if the current contract was amended, but the Judge did not issue a ruling on this issue which won’t be heard until February.
FOX plans to appeal the ruling, but both sides will resume mediation. Gross will supply a written opinion in a few days.