"This decision was reached after a full and careful consideration of the terms of the proposed transaction and the club's current circumstances," commissioner Bud Selig said in a statement. "It is my conclusion that this proposed transaction with FOX would not be in the best interests of the Los Angeles Dodgers franchise, the game of Baseball and the millions of loyal fans of this historic club."

Selig also said in his statement that he sent a letter to McCourt where "expansive analysis" for his rejection of the TV proposal was explained. The Dodgers' current TV deal with Fox expires in 2013.

Frank McCourt was disappointed with the league's ruling, according to a statement released by Steve Susman, senior partner of Susman Godfrey.

"We are extremely disappointed with the Commissioner's rejection of the proposed FOX transaction which would inject $235 million into the Los Angeles Dodgers," the statement read. "As Commissioner Selig well knows, this transaction would make the Dodgers financially secure for the long term and one of the best capitalized teams in Major League Baseball.

"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. 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."

MLB had taken control of the troubled franchise and was investigating the team's finances. Selig said he would not make a decision on the TV deal until that process was complete. But Selig indicated in Monday's statement that the terms of the divorce settlement in which a large chunk of the Fox upfront money would not go to the Dodgers led to his decision.

"Critically, the transaction is structured to facilitate the further diversion of Dodgers assets for the personal needs of Mr. McCourt," Selig said. "Given the magnitude of the transaction, such a diversion of assets would have the effect of mortgaging the future of the franchise to the long-term detriment of the club and its fans."

The statement on behalf of Frank McCourt and the Dodgers also notes that "all the requirements for the Commissioner to approve the FOX transaction were put in place by last Friday: Frank and Jamie McCourt entered into an agreement based on the proposed transaction; the Court ordered, among other things, that the FOX transaction is 'in the best interest of the Los Angeles Dodgers and should be consummated immediately;' and all information requested by Major League Baseball under its so-called investigation has been provided by the Dodgers."

Frank McCourt has struggled to make payroll. He now faces the prospect of failing to meet his obligations on June 30. That could lead to MLB taking over the team and forcing a sale. Sources told the Los Angeles Times, however, that the commissioner expects Frank McCourt to sue the league -- to challenge MLB's right to take over the team and/or to force Selig to approve the FOX deal.

Terms of the divorce settlement had set a one-day trial for Aug. 4 to decide if Frank McCourt owned the Dodgers outright or if it should be a marital asset to be split.

"As I have said before, we owe it to the legion of loyal Dodger fans to ensure that this club is being operated properly now and will be guided appropriately in the future," Selig said. "This transaction would not accomplish these goals."