The Los Angeles Dodgers, the bankrupt Major League Baseball team, has reached an agreement with Fox Sports to end the broadcaster’s objection to the $2.15 billion sale of the club, lawyers said in court today.
Fox Sports’ Net West 2 LLC, a unit of New York-based News Corp. (NWSA:US), plans to drop its opposition to the sale later today once final documents are presented in bankruptcy court in Wilmington, Delaware, Fox attorney Gregory W. Werkheiser said in court today.
Fox had objected to the sale, seeking written assurances that competitor Time Warner Cable Inc. (TWC:US) isn’t part of the group buying the Dodgers. The Dodgers are preparing court documents that should address Fox’s concerns, team attorney Sidney Levinson said in court.
“We believe we do have an agreement in principal,” Werkheiser told U.S. Bankruptcy Judge Kevin Gross today.
The team is being bought by a group including former basketball player Magic Johnson, Guggenheim Partners Chief Executive Officer Mark Walter and former Atlanta Braves and Washington Nationals President Stan Kasten.
Under the team’s television contract with Fox, the Dodgers can’t begin negotiating a new media-rights deal until November. Fox argues that allowing Time Warner to buy a stake in the team may violate that television contract.
Later today, Gross will consider approval of the sale of the team as part of the Dodgers’ bankruptcy reorganization plan.
The case is In re Los Angeles Dodgers LLC, 11-12010, U.S. Bankruptcy Court, District of Delaware (Wilmington).
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