Fox Protests Dodgers Creditors’ Addition of Heavy Hitter Lazard

Fox Sports is concerned that the Los Angeles Dodgers’ creditors are preparing to pencil into their lineup Lazard, the Wall Street slugger that calls itself the world’s preeminent financial-advisory firm.

As the Dodgers’ current broadcaster, Fox is upset that the committee representing the baseball team’s creditors wants to hire Lazard for the specified purposed of evaluating the Dodgers’ efforts to sell their future television rights—a move that would be in violation of Fox’s existing contract.

Fox objected to the hiring of Lazard to the extent the firm’s services would be used “to advance or support any action by any party that interferes with, impairs, or undermines” the team’s contract with a Fox regional sports network in Southern California, court papers said.

Dodgers owner Frank McCourt is advancing a plan that would pay off the team’s creditors with the proceeds from the sale of future broadcast rights.

Fox and Major League Baseball have taken exception to that plan. Fox, which is also one of MLB’s national broadcast partners, is supposed to have exclusive rights to negotiate with the Dodgers through November of next year.

Fox is unit of News Corp., which also owns The Wall Street Journal.

What’s more, Fox is unsure of what exactly Lazard would be paid to “review and evaluate.”

There is a confidentiality provision in the current contract between Fox and the Dodgers and neither the creditors nor Lazard have permission to review that deal.

Understanding the current deal, and the potential costs to violating it, would seem to be an important part of evaluating future TV deals.

An attorney for the Dodgers’ creditors declined comment Wednesday, but in court papers, the committee said, “Lazard has substantial expertise as a financial adviser and investment banker in complex Chapter 11 cases, and is well qualified to perform” the requested these services, including reviewing a potential TV deal.

For its services, Lazard would be paid like a baseball player if the court approves of the hiring. The firm would collect monthly fees of $125,000 and would be paid a $1.25 million fee should the Dodgers reorganize around a plan that the creditors support.

By comparison, the Dodgers’ young ace pitcher Clayton Kershaw, a 20-game winner, was paid $500,000 for his services this season.