Sports Teams/Owners Filing Bankruptcy
Does it will help to know that you are not alone in the bankruptcy arena?
The Chicago Cubs (the league’s most lovable losers) have filed for Chapter 11 bankruptcy protection as the team, Wrigley Field (the greatest Major League ballpark and largest summertime beer-fest) and related properties are being sold to the Joe Ricketts family. With the filing, Joe Ricketts, billionaire founder of Omaha, Nebraska-based TD Ameritrade, and his family should be protected from any potential claims by Tribune creditors. The Tribune Company, which owns The Chicago Tribune and the LA Times, had previously filed for bankruptcy protection in December 2008; that filing, however, did not include the Cubs.
The Tribune Corporation, which bought the team in 1981 for $20.5 million from the Wm. Wrigley Jr. Company, planned to sell the franchise in 2007, when the failing economy got in the way. It has since agreed to sell a 95% stake in a deal that tops the former record of $660 million paid for the Boston Red Sox in 2002. The Tribune Company will be retaining the remaining 5%.
The Seattle Pilots’ owners, brothers Dewey and Max Soriano, filed for bankruptcy following the 1969 season, ostensibly for being millions of dollars in debt. Although most of the losses were just “on paper” with the actual losses much lower, the franchise faced other, complicated woes. The team changed its name to the Brewers following their relocating to the beer-centric city of Milwaukee. The Pilots were the first MLB team to file for bankruptcy protection.
And talk about the “icing” on the cake. The NHL Phoenix Coyotes, a franchise that has yet to make a profit since moving from Winnipeg, Manitoba in 1996, filed for Chapter 11 protection in May 2009. On September 30, U.S. Bankruptcy Court Judge Redfield T. Baum rejected bids by the National Hockey League and Canadian businessman Jim Balsillie to buy the franchise, saying it could not succeed because he could not properly satisfy the NHL's rights regarding relocation. Balsillie wanted to move the team from Winnipeg to Hamilton, Ontario.
If you find yourself needing to file for Chapter 7 or Chapter 13 bankruptcy, call a Legal Helper attorney for experience that you can trust. Call toll-free 800-260-1402 to speak with a knowledgeable and compassionate bankruptcy lawyer.
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