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!

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.

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.

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.

Here it is in black and white ... The Los Angeles Dodgers are bouncing payroll checks.



TMZ has obtained a check ... signed by beleaguered Dodger owner Frank McCourt.  We've been asked to black out the name of the Dodger employee, but she works at Dodger Stadium.  The check was written on June 24 in the amount of $497.54.

The check was presented but rejected as "Refer to Maker." 

The L.A. Dodgers now say ... checks for some game day staff members did indeed bounce, but checks were reissued Wednesday.

Of course, the Dodgers have filed for Chapter 11 Bankruptcy protection.

MLB commish Bud Selig just rejected a proposed $3 billion dollar TV deal between the Los Angeles Dodgers and FOX Sports ... a deal that was the basis for the divorce settlement between Frank and Jamie McCourt.




As TMZ previously reported, the McCourts reached a settlement to their divorce on Friday that was predicated on MLB signing off on the FOX deal.

Now, with the demise of the deal, the McCourts are back to square one -- PLUS it now seems unlikely the Dodgers will be able to pay its players and employees this month.

If the team misses payroll, Selig could seize operational control of the team and eventually force a sale of the team.

UPDATE: A rep for the Dodgers, on behalf of Frank McCourt, released a statement saying, in part, “Commissioner Selig’s letter of rejection is not only a disappointment, but worse, is potentially destructive to the Los Angeles Dodgers, and Major League Baseball."

The rep continued, "Accordingly, we plan to explore vigorously our options and remedies with respect to Commissioner Selig’s rejection of the proposed FOX transaction and our commitment to protect the long-term best interests of the Los Angeles Dodgers.” 

Frank and Jamie McCourt just settled part of their divorce property dispute, but the headline ... if the judge decides in August that Jamie has a piece of the team, the Dodgers will be sold.



Lawyers for Jamie and Frank said ... if Judge Scott Gordon rules on August 4 that the Dodgers are community property -- giving Jamie a 50% interest -- the team will be put up for sale.

Once sold, each will get 50% of the net proceeds.

If Judge Gordon rules the team is Frank's separate property, he keeps the team but he has to pay Jamie $100 million.

And, if Frank keeps the team, Jamie gets all the mansions except one -- Frank gets to keep the Montana Yellowstone property. 

But there's a hitch.  The whole settlement is predicated on the Fox deal going through -- which would give the Dodgers a $385 million advance on the $3 billion broadcast deal to cover the teams bills, including payroll.

With the IRS breathing down her neck ... and with her team in financial ruin ... L.A. Dodgers co-owner Jamie McCourt just got approval to build herself an ultra-private, super-expensive beachfront dream pool ... TMZ has learned.



According to documents filed with the city of Malibu ... Jamie asked for city approval to begin construction at her sprawling beachfront mansion.

McCourt wants to expand an existing pool -- and needed permission to excavate 105 cubic yards of earth material. McCourt also wants to expand her wood deck, replace pool equipment and convert a guest room into a pool cabana.

The city approved Jamie's request -- under the condition she doesn't install any lighting systems that will be visible from the beach.

Jamie is VERY serious about her time in the pool -- as TMZ previously reported, she went to war with her estranged husband Frank McCourt over "exclusive rights to the family swimming pool" at her other home in the Hollywood Hills.

But after all the work she's doing in Malibu, Jamie might never need to leave her place again.