More Videos
- Is Super Bowl Halftime Act Too Old?
- Will TCU See The "Flutie Effect?"
- NBA D-League On The Rise
- Weis' Deal Likely Won't Change Big Money Contracts
- Time Lapse World Series Is A Great Play
- Boise State Stock Plan: An Early Success
- Dollar Signs Seen In Young "Buck" Jennings
- Iverson Wasn't A Popular "Answer"
- My Top 10 Marketing Ideas For Winless Nets
- Airlines Add 'Super Bowl' Tax
RSS FEED
MOST SHARED
- Finding the Holiday's Best Buys
- 8 Retailers that Gain During the Holidays
- Banks Play Down Dubai Exposure, Investors Still Wary
- Dubai Fallout Is a Correction, Not Another Crisis: El-Erian
- Attraction of Switzerland to Businesses
- More Asia Executives Resigned to Economy Flights: Survey
- ING Prices Share Issue at Hefty Discount
- San Miguel Sells $1.36 Billion Stake to Ally
- Surprising Options Trades in TiVo Shares
- EA Sports Hopes to Pump Up Sales Through Pop-Up Locations
- 8 Retailers that Gain During the Holidays
- Farrell: What's Different On This Black Friday
- 10 Dividend Picks For Your Portfolio: Chief Investors
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Dubai's Debt Woes Signal New Era for Creditors
- US Dollar Rises Against Most Currencies—Except Yen
- Shoppers Hit Black Friday Sales, Budgets Pared
- Fantasy Christmas Gifts 2009
- EA Sports Hopes to Pump Up Sales With Pop-Ups
- Cheap Robotic Hamsters Are Holiday's Unlikely Craze
- Car Insurance Scofflaws Raise Health Reform Doubt
- Steepest Black Friday Discounts, Revealed
- Tommy Hilfiger's Estate in Conn. Sells for $20 Million
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