Legal Woes Continue For MLB’s Los Angeles Dodgers

Just hours after Major League Baseball objected the bankruptcy filing by the Los Angeles Dodgers, a Delaware judge granted several routine motions that will allow the team to

continue operations. Judge Kevin Gross authorized the Dodgers to continue paying vendors, utility providers and employees, and to keep up with tax and insurance obligations. The granting of such motions are routine in first-day hearings in bankruptcy court, but Gross noted that the baseball club's case is unique in some aspects.

Earlier Tuesday, the league had accused Dodger owner Frank McCourt of siphoning off more than $100 million in revenue and driving the team into a liquidity crisis. The Dodgers countered by stating the league was trying to exert a stranglehold on the team.

The news gets worse for McCourt though as The Associate Press is reporting that Major League Baseball plans to file a motion to seize the cash-strapped Los Angeles Dodgers. Baseball's constitution allows Commissioner Bud Selig to take control of a team that seeks Chapter 11 protection, but MLB first must file a motion seeking termination of the franchise. There is no timetable for that filing.