More Videos
- These Poker Stories Are No Bluff
- Did Matsui Make Contract Money Last Night?
- Adidas Out At UCF After MJ's Son Wears Jordans
- If Yanks Win, Merchandise Will Fly Off Shelves
- Final World Series Games Big Money Makers
- What I Got Wrong About Keflezighi
- Marathon's Headline Win Is Empty
- New Cubs Owner Tom Ricketts Goes One-on-One With "SportsBiz"
- Roger Federer Signs With Chocolate Brand Deal
- Marshall Fogel: A Collector's Profile
RSS FEED
- Tamminen: Why Does Oklahoma Want To Drown New York?
- Food Network, HGTV Drive Scripps Networks' Upside Surprise
- Tommy Lee, Medical Tourism and Nasty Santa, Your Emails
- U.S. Markets Gain 3% for the Week Despite 10.2% Unemployment
- Disney's 'Carol' Tests Widest 3-D Release Ever
- Stimulus II? Jobs Tax Credit=Cash For Clunkers
- Rockwell Automation Earnings: What Options Are Saying
- Gold Will Touch Higher Lows and Higher Highs: Analyst
- Is Misery Alive And Well in Your Office?
- GE, Comcast Agree on NBC Universal Valuation: Report
- BoA Board in Civil War Over Lewis' Succesor
- For the Jobless, 10% is Harder Than Before
- Week Ahead: Stocks Search for Catalyst in Quiet Week
- Outlook: Dollar to Ride Higher on Bleak Jobs Report
- Geithner: More Stimulus, Not a Bank Tax
- Windfall is Seen as Bank Bonuses are Paid in Stock
- Volatility Returns: Sign of the Bull Losing Muscle?
- Cramer: Earnings, IPOs Dominate Next Week
Sports Biz
Text Size 
 |
"The Chicago Cubs franchise, including Wrigley Field, is not included in the Chapter 11 filing. Efforts to monitize the Cubs and its related assets will continue."
Huh? How does a company file for bankruptcy and voluntarily take off some of its assets or subsidiaries? I certainly didn't think that was playing by the rules. Well, apparently I was wrong.
I spoke with Paul Rubin, a partner at Herrick Feinstein who is part of the bankruptcy group and has dealt with and consults with professional sports teams.
Rubin told me that a parent corporation can file for bankruptcy without the subsidiary filing. The point of doing this is to make it easier to sell the Cubs without all the rules associated with the bankruptcy court, including timely filings of financial information. Another bankruptcy lawyer friend of mine told me that it would also allow the Cubs employees, and anyone associated with dealing with the Cubs, to better operate on a "business as usual" basis.
This all does not mean, however, that the Cubs sale will be free from everything that goes on with the bankruptcy because the creditors will still get the proceeds from the sale of the team. And who knows what's going to happen with free agents? You think the court isn't going to get involved if the Cubs sign a big free agent like Jake Peavy or Bobby Abreu in the offseason?
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes