Judge Rejects Highbridge Plan, (Likely) Forcing McCourt To Come Groveling Back To MLB

The Dodgers' deal with Highbridge Capital has been rejected by the Delaware bankruptcy court judge. Does Frank McCourt have any more bullets left to fire, at this stage?

DOVER, Del. -- A Delaware judge has rejected the Los Angeles Dodgers' proposed $150 million bankruptcy financing plan, a decision that likely will force the team to accept a financing offer from Major League Baseball.

The judge issued his eight-page decision Friday, two days after presiding over a hearing on the competing financing plans.

The team had sought approval of its proposed arrangement with hedge fund Highbridge Capital.

But the league, which has been locked in a bitter dispute with Dodgers owner Frank McCourt, countered with a competing plan that carried better financial terms.

The Dodgers rejected MLB's offer, saying it likely would result in legal battles and was an attempt by baseball commissioner Bud Selig to take control of the team and force a sale.

The decision comes after the Los Angeles Times obtained an 11-page letter in which Selig outlines the reasons that he shot down the Dodgers' proposed television deal with Fox and expresses concerns about an IRS investigation.

One big reason Selig cites for shooting down the TV dea is a lack of competition. The team's current deal with Fox expires in 2013 and the Dodgers can't negotiate with other suitors until Nov. 30, 2012. Selig said that McCourt was willing to give away bargaining leverage because of a "desperate need for immediate cash."

"No other owner has sacrificed so much of his team's future for an immediate payoff," Selig wrote, according to the paper.

So McCourt has just gone from Highbridge to low blow. I am guessing McCourt has other tricks up his sleeve, but I'm at a loss to figure out where he could find another alternative financing scheme at reasonably favorable terms, at this stage.

(Hat tip to Dusty Baker for the headsup on the breaking news.)