"In 2011, after then-commissioner Bud Selig rejected a proposed $3-billion local television deal between the Dodgers and Fox Sports, McCourt took the team into bankruptcy court before agreeing to sell. That meant Selig and the MLB owners would not pick the new Dodgers owner. McCourt would, in a process controlled by the court."
"In a settlement with McCourt - and to avoid the risk of the judge imposing a deal less favorable to the league - MLB agreed the fair-market value of a Dodgers TV deal would be based on the very Fox deal that Selig had rejected."
"In bankruptcy court, an attorney for Guggenheim, the winning bidder and still the Dodgers' owner, said the settlement represented a "substantial component of the value proposition of the transaction" - that is, a primary justification for the then-record $2.15-billion purchase price."
Kyle Tucker's $240-million signing revived claims that the Dodgers benefited from preferential financial treatment tied to a prior settlement over local television rights. In 2011, Bud Selig rejected a proposed $3-billion Fox Sports local-TV deal and Frank McCourt took the team into bankruptcy court, creating a court-controlled sale process. MLB agreed in settlement to base the fair-market value of a Dodgers TV deal on the Fox offer. That valuation established an $84 million first-year baseline and preserved MLB's standard 34% revenue share, a factor Guggenheim cited when paying $2.15 billion for the team.
Read at Los Angeles Times
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