Dodgers Ownership in Peril with Owner, MLB Legal Dispute

The circumstances surrounding Los Angeles Dodgers' owner Frank McCourt is simple: He's in a contentious fight with Major League Baseball (MLB) for the right to retain control of his team. MLB took over temporary control of the Dodgers with Commissioner Bud Selig appointing a trustee. Selig stated: "I have taken this action because of my deep concerns regarding the finances and operations of the Dodgers and to protect the best interests of the club."

McCourt and the Dodgers secured a loan of $30 million to meet payroll - an action that has troubled most in the sports world. But recently, the franchise made a 20-year deal worth $3 billion with FOX. It was acknowledged that these proceeds would help McCourt settle the dispute with his former wife. Everything may hinge on the MLB trustee's decisions.

The financial stress the storied franchise has been under is due in-part to long, protracted divorce proceedings between the McCourts (Frank and his wife Jamie). The key ruling in the divorce trial was a December 2010 decision from Superior Court Judge Scott Gordon in Los Angeles which invalidated a March 2004 postnuptial agreement that would have given Frank full ownership of the Dodgers. This decree allowed Jamie to seek one-half ownership.

These types of situations have occurred in the past and maybe something can be learned from past circumstances.

Here are three examples of high profile teams and their struggles.

Manchester United

One of the most popular and highly valued sports teams in the world is Manchester United Football Club (soccer). Billionaire Malcolm Glazer purchased control of the team six years ago and, to mitigate the costs, increased ticket prices. Due to the debt and ticket situations, the team has been wracked with amplified interest payments and angry fans. Glazer has effectively refinanced the debts through bond sales. Recent successful sponsorship has alleviated some of the obligation concerns.

New York Yankees

George Steinbrenner had run-ins with many people and MLB. In 1990, Steinbrenner had been banned from executive management of his team due to his "overly dominating" business practices. He was ordered to resign as the club's general partner and was banned from day-to-day operations of the team.

The ruling came as a result of Steinbrenner paying $40,000 to confessed gambler Howie Spira to recruit damaging information on then-Yankee outfielder Dave Winfield. Steinbrenner was reinstated a few years later.

Cincinnati Reds

Another high profile owner was Marge Schott, who was the first woman to purchase a Major League Baseball team. Although loved by fans, she ran into constant problems with off-color, outrageous and insensitive comments. Her continued comments with very little regret ended up having the MLB ban her from day-to-day management of the team.

All of these off-the-field circumstances with high profile teams and owners suggest when presented with dire requirements, if you keep your head and work the problem through, a good result may come. Otherwise, if you are too aloof, the operations of the team will falter.

Major League Baseball made a bold move; but if indeed, the McCourts would receive their allotment of the huge FOX contract agreement, there won't be a need for MLB to continue intervening and Frank McCourt can go back to owning and managing the operations of a famous and historical baseball team. Circumstances yet to be unveiled may dictate the outcome.

Sources - Major League Baseball