Jamie & Frank McCourt: The Divorce That Bankrupted the LA Dodgers
A disputed postnup, a bankrupt baseball team, and a $2 billion sale -- she settled too early
Key Facts
What Happened
Frank and Jamie McCourt purchased the Los Angeles Dodgers in 2004 for $430 million using mostly borrowed money. Their marriage and their ownership of the iconic franchise became inseparable -- both served as executives, and they used the team's revenue to fund an extraordinarily lavish lifestyle including multiple mansions, private jets, and a $10,000 per week hairstylist for Jamie.
When Jamie filed for divorce in 2009, the central question was whether the Dodgers were marital property. Frank claimed a postnuptial agreement signed by both parties designated the team as his separate property. Jamie's attorneys argued the postnup was invalid because her lawyer at the time had a conflict of interest and she did not fully understand what she was signing. A Los Angeles judge agreed with Jamie, throwing out the postnup in December 2010.
The fallout was catastrophic for the Dodgers. Unable to resolve the ownership dispute, and with MLB Commissioner Bud Selig seizing control of the team due to financial mismanagement, Frank was forced to take the Dodgers into bankruptcy in June 2011. The team was eventually sold in 2012 to a group led by Magic Johnson and Guggenheim Partners for $2.15 billion -- the highest price ever paid for a sports franchise at the time.
Jamie settled for approximately $131 million before the sale was completed, a decision she reportedly regretted. Had she held out for a share of the $2.15 billion sale price, her take would have been vastly larger. The case became a cautionary tale about the timing of divorce settlements when major asset sales are pending.
Legal Breakdown: Postnuptial Agreements & Sports Franchises
Invalid Postnuptial Agreements
The McCourt postnup was invalidated because Jamie's attorney had a conflict of interest -- he also did work for Frank. California law requires that both parties have independent counsel and fully understand the terms. When a postnup is thrown out, the default community property rules apply, making all marital assets subject to 50/50 division.
Sports Franchise Valuation
Sports franchises are notoriously difficult to value because they rarely trade on public markets. The Dodgers were purchased for $430M but sold for $2.15B just eight years later. The gap between the purchase price, appraised value, and actual sale price demonstrates why timing matters enormously in divorce settlements involving unique assets.
Settling Before a Sale
Jamie accepted $131M before the Dodgers sold for $2.15B. Had she waited, her community property share could have exceeded $1 billion. This is one of the most expensive premature settlements in divorce history. When a major asset sale is imminent, patience can be worth billions.
What This Means for Your Divorce
- →A postnup is only valid if both parties had truly independent legal counsel. A shared or conflicted attorney can void the entire agreement.
- →Never settle a divorce while a major asset sale is pending. The difference in timing can be worth billions.
- →Sports franchises, like startups, can appreciate dramatically. Valuation at the time of filing may vastly understate future sale prices.
- →The McCourt case shows how divorce can destroy a business -- and how bankruptcy can force a sale at the worst possible time.
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This article is based on publicly available court records, news reports, and legal analysis. It is provided for educational purposes only and does not constitute legal advice. No attorney-client relationship is created by reading this content.
Divorce laws vary by jurisdiction. Always consult a licensed attorney in your area before making legal decisions.