The move by a cash-starved McCourt comes just days before he was expected to miss team payroll Thursday and possibly be confronted with an MLB takeover. The filing also means it's unlikely a resolution over team ownership, a fight that began two years ago when McCourt and his ex-wife and former team CEO Jamie McCourt decided to divorce, will be found any time soon.

Selig issued a statement condemning Monday's development.

"The Commissioner's Office has spent the better part of one year working with Mr. McCourt and his representatives on the financial situation of the Los Angeles Dodgers, which was caused by Mr. McCourt's excessive debt and his diversion of club assets for his own personal needs. We have consistently communicated to Mr. McCourt that any potential solution to his problems that contemplates mortgaging the future of the Dodgers franchise to the long-term detriment of the club, its loyal fans and the game of Baseball would not be acceptable.

"My goal from the outset has been to ensure that the Dodgers are being operated properly now and will be guided appropriately in the future for their millions of fans. To date, the ideas and proposals that I have been asked to consider have not been consistent with the best interests of Baseball. The action taken today by Mr. McCourt does nothing but inflict further harm to this historic franchise."

Legal observers expect MLB to contest McCourt's request for filing bankruptcy, arguing the dispute should remain within the confines of baseball and the league's constitution allows Selig to take control of a team that seeks Chapter 11 protection.

The main issue is whether "the bankruptcy court maintains control of the proceedings or acquiesce to baseball," said Edward Ristaino, who chairs the sports practice at the law firm Akerman Senterfitt. "The courts recognize the special interests of the commissioner and give him great deal of deference. My sense is that won't happen very quickly at all."

In court documents, team vice chairman Jeff Ingram cited a significant drop in attendance, contributing about 10 percent of Dodger revenues to the league's sharing program last year and paying about $22 million in deferred compensation as reasons for filing bankruptcy.

"To date, LAD has remained current in its obligations," Ingram wrote. "However, LAD is now on the verge of running out of cash, the results of a perfect storm of events."

McCourt has taken out loans to stay afloat this season but his mounting financial problems were expected to balloon this week, when he owed tens of millions of dollars to meet payroll and other obligations.

About $20 million is slated for current and deferred compensation by Thursday, while more than $18 million is required as a reserve to prefund money to be paid to players in 2012 under terms of the collective bargaining agreement, court documents show.

The bankruptcy filing lists assets of up to $1 billion and debts

up to $500 million. The Dodgers are obligated to pay $92.5 million

in guaranteed player contracts, not including signing bonuses, and

the team has nearly 300 full-time employees.

The bankruptcy filing also noted a $67 million loan taken out against the parking lots at Dodger Stadium was set to mature on Thursday. It was expected McCourt was going to refinance the loan.

"He's clearly running very low on options right now," said David Carter, executive director of USC Sports Business Institute. "What seems to be the case is a high-stakes chess game between Frank McCourt and MLB, and he's running out of pieces. This is one of the uglier weeks in Dodger history."

Among the 40 largest unsecured claims, totaling about $75 million, are former Dodgers slugger Manny Ramirez at nearly $21 million; Andruw Jones at $11 million; pitcher Hiroki Kuroda at $4.4 million; and the Chicago White Sox, which share a spring training facility with the Dodgers in Arizona, at $3.5 million. Longtime Dodger announcer Vin Scully is owed more than $150,000 as part of his contract, court documents show.

Dodgers officials said they reached out to numerous banks and investors and while several parties expressed interest in providing financing, they received only one commitment from Highbridge Principal Strategies. If approved by a judge, the financing would come in two chunks from the investment firm -- $60 million up front with the remainder being paid at a later date.

Tripp Kyle, a spokesman for the firm, declined to comment about the reasons the company decided to lend McCourt the money.

According to Bloomberg, the Dodgers must pay a hefty 10 percent interest rate plus fees on the loan, and Highbridge receives first claim on the Dodgers assets.

The Players Association has promised all Dodgers players, along with former players who have deferred money due, that they'll be paid Thursday as scheduled. In an email to all affected players, union chief Michael Weiner wrote Monday that the Players Association "has been assured, as recently as (Monday) afternoon, that all contractual obligations of the Dodgers to present and former players will be honored."

In the email, a copy of which was obtained by ESPN.com, Weiner also told players that the union had "retained experienced bankruptcy counsel to ensure the players' interests are fully protected throughout this legal process." Weiner said the union would have attorneys on hand for the first day of courtroom proceedings Tuesday.

Finally, Weiner said in the email that, "as we did with last year's Texas Rangers bankruptcy, we will do all we can to ensure that these proceedings don't interfere with the Dodgers' ability to compete this year.

"We can make no guarantees here," he went on, "but, whenever possible, we will emphasize the importance of permitting the Dodgers to continue to operate effectively."