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Game over. Three days after Frank and Jamie McCourt reached a settlement in their contentious divorce battle over ownership of the Los Angeles Dodgers, Major League Baseball Commissioner Allan “Bud” Selig rejected a proposed television broadcast contract with Fox on which the deal had relied. Under the settlement, approved on June 17, a portion of the contract would have provided a $385 million loan and equity infusion, including a $235 million payment to the Dodgers. But it also would have set aside $50 million for either Frank or Jamie McCourt, depending on a judge’s ruling about who owns the team. Another $20 million was earmarked for attorney fees, costs and discretionary funds for Jamie and Frank McCourt. In rejecting the contract, Selig appeared particularly concerned about the money that would have gone to the McCourts. “Critically, the transaction is structured to facilitate the further diversion of Dodgers assets for the personal needs of Mr. McCourt,” Selig said in a prepared statement on June 20. “Given the magnitude of the transaction, such a diversion of assets would have the effect of mortgaging the future of the franchise, to the long-term detriment of the club and its fans.” The settlement followed the league’s takeover of control of the Dodgers. Selig has been investigating the team’s finances and has appointed a trustee, Tom Schieffer, senior counsel in the Dallas office of Akin Gump Strauss Hauer & Feld. Selig’s move also brought him one step closer to selling the team. If Frank McCourt misses the team’s next payroll on June 30, Selig could suspend him and put the team up for sale, the Los Angeles Times has reported. In the divorce proceedings, Jamie McCourt is fighting for half ownership of the Dodgers. The settlement had called for Los Angeles County, Calif., Superior Court Scott Gordon to conduct a one-day trial on Aug. 4 to determine who owns the Dodgers. Jamie McCourt’s lawyer, David Boies, managing partner of Boies, Schiller & Flexner, and Frank McCourt attorney Ryan Kirkpatrick, a partner in the Los Angeles office of Houston’s Susman Godfrey, did not respond to requests for comment. In December, Gordon ruled that the couple’s 2004 marital agreement was invalid under California law. The McCourts signed the agreement as they were moving from Massachusetts to California. Gordon found that the contract failed to “transmute” the baseball team from community property into Frank McCourt’s separate property. Jamie McCourt argued that the couple’s attorney, Lawrence Silverstein, a trust and estates lawyer at Boston’s Bingham McCutchen, had switched part of the contract at the last minute to give Frank McCourt sole ownership of the team. In April, Bingham sued Frank McCourt in Massachusetts state court, seeking to prevent its former client from filing a malpractice case against the firm. Amanda Bronstad can be contacted at [email protected].  

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