Magic Johnson is in as part owner of the Los Angeles Dodgers -- and Frank McCourt is out -- after the NBA legend's investment group sealed a TWO BILLION dollar deal to purchase the team ... and the crowd went wild!

Magic and McCourt announced the deal late Tuesday night ... which should unite LA's most storied sports franchise with its most beloved athlete by the end of April.

Magic was the face of the investment group -- Guggenheim Partners -- which closed the $2 billion deal that still has to be approved in federal bankruptcy court. The controlling partner of the team would actually be Mark Walter, CEO of GP.

As part of the deal McCourt would get to buy the land around Dodger Stadium -- mainly the overpriced parking lots -- for around $150 million. Face it Dodger fans ... he's never leaving.

But hey, "In a year that has been so improbable, the impossible has happened" ... we got Magic!

The Situation: You're a die-hard L.A. Dodgers fan out for a bite -- and you run into Frank McCourt ... the man who ruined your team! What ... do ... you do???

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Frank McCourt didn't only lose the Dodgers -- new documents in his nasty divorce reveal he's also giving up three of the luxury properties he and Jamie McCourt owned together.

TMZ obtained the freshly filed docs in the divorce settlement which state Jamie gets the homes in Malibu, Holmby Hills, and Vail.

As for Frank ... the papers -- filed today in L.A. County Superior Court -- say he gets two homes back in Massachusetts 

Just last month ... Jamie actually unloaded the 8,400 square foot "guest house" of the Holmby Hills property.

The hits just keep on coming for Dodgers owner Frank McCourt -- who just announced he's selling the team!

"The Los Angeles Dodgers and Major League Baseball announced that they have agreed today to a court-supervised process to sell the team and its attendant media rights in a manner designed to realize maximum value for the Dodgers and their owner, Frank McCourt," read a joint statement from Frank and the MLB.

The Blackstone Group LP will manage the sale process.

There are rumors that Frank will fetch as much as $1 billion for the team -- but so far, that number is still unconfirmed.

The news of the sale comes a few months after the team filed for bankruptcy -- and one month after Frank's $130 million divorce settlement with ex-wife Jamie.

Frank and Jamie McCourt have reached a divorce settlement which will secure Jamie as a very rich woman, but at a price ... she's relinquishing all claims to the Los Angeles Dodgers.

Under the settlement, which must still be approved by the judge, Jamie will snag $130 million ... this according to a report.   The judge rejected an earlier settlement proposal, partly because of an unorthodox TV deal that fronted money to Frank.  The TV deal is not part of this settlement.

So on the surface -- when it comes to the Dodgers -- it's a big victory for Frank. But insiders say far from a victory, Frank is probably going to lose the team, because at the end of the month a bankruptcy judge will decide if the Dodgers will go on the auction block.

Insiders think the judge will force the sale -- which should produce anywhere from $700 million to a billion bucks for the team.


12:17 PM: Frank and Jamie just released a joint statement ... Jamie will no longer stand between Frank and his TV deal -- claiming, "Jamie will be withdrawing her opposition to the Dodgers proposed sale of media rights and instead will be filing papers in support of the process."

Jamie McCourt has successfully unloaded one of the Holmby Hills cribs she used to own with estranged hubby Frank McCourt -- selling the 8 bedroom, 10 bath mansion for a cool $6.525 million.

The McCourts bought the 8,400 square foot home back in 2004 -- in hopes of making it the "guest house" for the $25 million villa they purchased next door.

The problem is -- Frank and Jamie divorced before they got around to creating the massive 5 acre compound -- and the guest house was put up for sale.

In addition to the two Holmby Hills homes -- the McCourts own two side-by-side homes in Malibu, two properties in Massachusetts, one property in Montana -- and a little bankrupt baseball team called the Dodgers.

Los Angeles Dodgers season ticket holders want to make sure Frank McCourt isn't screwing them over in the team's bankruptcy proceedings -- and they've filed a motion to make sure they're protected.

Attorneys representing a handful of season ticket holders filed docs with the bankruptcy court in Delaware ...seeking to establish a formal committee of more than 17,000 season ticket holders.

According to the docs, the committee's goal is to make sure Dodger funds are going to what they consider the most important part of the "fan experience" -- such as acquiring new players, meeting payroll, renovating the stadium, and operating concessions.

The motion also specifically mentions the need for  "security" at the stadium -- which has been a hot button issue since the Opening Day beating of Giants fan Bryan Stow.

According to the docs, the season ticket holders have collectively poured "hundreds of millions of dollars" into the storied franchise -- and some individuals pay up to $150,000 per season.

The Dodgers filed for bankruptcy back in June. If the fans' motion is approved they could have a voice in future decisions about the team -- such as whether it's sold and to whom.

Jamie McCourt says she's already racked up $9.9 million in bills from the lawyers working her nasty divorce from L.A. Dodgers owner Frank McCourt ... and she expects to drop at least $7 million more.

Jamie just filed legal documents in L.A. County Superior Court, claiming Frank is in control of the family fortune ... and she wants the judge to order Frank to send her more money so she can continue to make her legal payments.

According to the docs, Jamie's lawyers ain't cheap -- and they charge anywhere from $325-per-hour to $940-per-hour.  FYI -- the McCourts filed for divorce back in 2009.

Jamie claims she needs the cash to "level the playing field" -- because Frank has had access to $70 million of non-Dodgers money to spend on top-flight lawyers ... and she wants to be able to keep up.

A judge shut down the Los Angeles Dodgers' bankruptcy financing plan to score $150 million for the team -- meaning Frank McCourt may have to turn to Major League Baseball for a loan instead.



McCourt was trying to strike a deal with Highbridge Capital to keep the team afloat, but today a judge in Delaware rejected that bid.

MLB has offered the Dodgers a lower interest loan with no liens attached -- an alternative the team seemed more open to after today's ruling.

An attorney for the Dodgers released a statement today saying, "A short form unsecured credit agreement with MLB, when combined with other sources of revenues, should provide the Dodgers with ample liquidity to meet team payroll and other expenses."

The statement also says the Dodgers plan to emerge from Chapter 11 before the end of this year.

Major League Baseball has just offered the L.A. Dodgers $150 million to keep the team afloat ... TMZ has learned.



According to legal docs filed in the Delaware bankruptcy case, the Dodgers solicited a $150 million loan from Highbridge Capital Management -- an investment management company.

MLB objected to the loan, partly because there were strings attached -- specifically, liens on the Dodgers' assets.

 According to the docs, MLB has now offered to make the $150 million loan itself, with more favorable terms -- notably an interest rate that is 3% less than Highbridge is offering, and there would be no liens attached.

No word yet on whether the Dodgers will accept the MLB loan.

Nothing unites L.A. Dodgers fans like their abiding hate for Frank McCourt -- and now, they're filing MULTIPLE seething letters in his bankruptcy case ... demanding the judge give Frank the boot.



A Dodgers fan named Greg MacDonald opened the floodgates recently, submitting a passionate anti-McCourt letter to the court ... the first fan letter in the McCourt bankruptcy file -- but FOUR more letters have since entered the fray, and each one LAMBASTS the current franchise owner.

One fan writes, Frank McCourt's behavior "is an outrage and is an embarrassment to all of MLB, its owners, players, and fans."

Another writes, Frank's ownership "has been a huge black eye on our city and the team we love the most."

It's unlikely Judge Kevin Gross will weigh the letters in his decision-making -- but if it keeps going like this ... they might be hard to ignore.