Los Angeles Dodgers file for bankruptcy

The bankruptcy filing also comes in the wake of a bitter divorce battle between owners Frank and Jamie McCourt, who finally reached a settlement earlier this month.

But Frank McCourt still needed approval of a new $3 billion television deal with Fox Sports, and Commissioner Bud Selig blocked the deal with the News Corp. (NWS) unit last week, who said he couldn't approve a deal which he said was "structured to facilitate the further diversion of Dodgers assets for the personal needs of Mr. McCourt."

Selig had already appointed a monitor to oversee the club's business operations. McCourt had vowed to fight any effort to force him to sell the team, but that effort may now be nearing an end with Monday's filing.

McCourt has complained bitterly about not being able to get approval of the 17-year television deal, which he said was critical to the team meeting its liquidity needs this year.

McCourt issued a statement Monday charging that Selig had "turned his back on the Dodgers, treated us differently, and forced us to the point we find ourselves in today."

"I simply cannot allow the Commissioner to knowingly and intentionally be in a position to expose the Dodgers to financial risk any longer," he continued.