Cubs going bankrupt

[CheezWizHed]

Link

 

I hear they plan to go bankrupt as the "old Cubs", rid themselves of 100 years bad luck and curses, then re-emerge as the "new Cubs". Then when someone brings up the goat, Bartmen, "Maybe next year", they can say - "That was the old Cubs"! http://forum.brewerfan.net/images/smilies/wink.gif

[RightFieldCoder]

My dreams:

 

A. This null and voids any contracts the company has signed. This would make every player an instant free agent.

B. MLB should step into bankruptcy court and offer to buy the team. They can then have the people running the Nats run the Cubs, or merge the teams.

 

This could be so cool, but I know it won't happen.

[sheethead]

I have a hard time understanding how an MLB organization is having a tough time staying afloat with a third world stadium. I can't wrap my head around this one.

[JohnBriggs12]

My dreams:

 

A. This null and voids any contracts the company has signed. This would make every player an instant free agent.

B. MLB should step into bankruptcy court and offer to buy the team. They can then have the people running the Nats run the Cubs, or merge the teams.

 

This could be so cool, but I know it won't happen.

Robin19,

 

Why would you want the Cubs to get out from under those horrendous contracts? Of course a bankruptcy doesn't affect player contracts.

 

But the idea of the Cubs declaring bankruptcy is a complete misuse of bankruptcy law. Bankruptcy prevents creditors from taking actions to collect legitimate debts and should only be used by companies that are insolvent. The Cubs are hardly insolvent.

 

Now the Seattle Pilots were insolvent when Bud bought them out of bankruptcy court back in 1970.

[Invader3K]

They're already saying any bankruptcy would not void the players' contracts, so that shouldn't be a real issue.

 

It does seem crazy that a team with the history and fanbase of Cubs is having such significant problems getting their sale done.

[LouisEly]

The problem isn't with the Cubs, it's with the Tribune Company. If they want to sell off the Cubs as a separate business unit, the "bankruptcy" is just a paper move (think assigned to Helena for a week) to protect any potential buyers of the Cubs from being sued down the road for any debts related to the Tribune Company. That's what is scaring buyers away from the Cubs.

[CheezWizHed]

Since the Cubs org is viable (making money, not winning) and the Trib is in bankruptcy, it sounds like this is a technicallity to prevent a creditor to the Trib from coming after the $$ in the Cubs.

 

I work as a supplier to GM and a competitor to Delphi, so we have learned much about bankruptcy lately... There are a lot of strange laws and ways to move money around.

 

But if Bud is still looking for someone to contract... :P

 

edit: blast, LouisEly, I need to refresh more often or write faster...

[UeckerAddict]

Cubs going bankrupt

 

Financially or morally?

[The Heartbreak Yid]

From what I have heard, the bankruptcy could give the Cubs the ability to dump tainted assets, which would include executory contracts, including player contracts, but theres no way its going to happen unless they dont mind really pissing off the players asociation. The bankrutpcy affects the Cubs organizations current ownership, and once the new ownsership takes over, it will be business as usual.

[RightFieldCoder]

What I meant is that their players would become FA and available for other teams to sign. That would be a great way to implode the team, have A-Ram, Fuk-U, D-Lee, etc go to other teams.

[sheethead]

A-Ram, Fukudome, D-Lee, etc go to other teams.

 

Two of those are pretty funny if you ask me.

[JumpinMacFlash]

Is this a way for Sam Zell to sell off some of the pieces that he received as part of the purchase of the Tribune Co.? If I recall correctly, the purchase of the Cubs came with the partial ownership of Wrigley Field, part of a local cable network, and assorted other assets?

 

If that's the case, would bankruptcy protection give Zell the ability to sell of "toxic" assets, such as Wrigley, separately from the team? (similar to GM selling off individual brands like Hummer?) If so, wouldn't that make the purchase of the team more appealing?

[LouisEly]

From what I have heard, the bankruptcy could give the Cubs the ability to dump tainted assets, which would include executory contracts, including player contracts, but theres no way its going to happen unless they dont mind really pissing off the players asociation. The bankrutpcy affects the Cubs organizations current ownership, and once the new ownsership takes over, it will be business as usual.

They want to get rid of Taint McFadden's contract???

[Diskono]

Huh, I thought the whole point in selling the team was to avoid something like this. The Cubs are worse than GM.

 

Your 2010 Chicago Cubs: We're not going out of business, we're getting down to business.

[sheethead]

This has to be what's holding up the sale, as it must be a ton of work to strip the Tribune creditors of claims against assets owned by the Tribune company at the time of the bankruptcy filing. I recall at the time of the filing, the Tribune company did not include the Cubs or Wrigley in the protection. Makes sense since they are the assets making money.

[SoCal Brew Crew Fan]

The problem isn't with the Cubs, it's with the Tribune Company. If they want to sell off the Cubs as a separate business unit, the "bankruptcy" is just a paper move (think assigned to Helena for a week) to protect any potential buyers of the Cubs from being sued down the road for any debts related to the Tribune Company. That's what is scaring buyers away from the Cubs.

 

True. Additionally, since Tribune is currently in bankruptcy a sale must be approved by the bankruptcy judge. This is not uncommon. Over-levered companies in bankruptcy usually wind up selling of functional assets to recoup as much money as possible for the bondholders. This is a way of making sure the proceeds from the sale wind up in the right hands. It makes for great headlines, but the Cubs will be in and out of bankruptcy in the amount of time it takes the judge to approve the sale and there probably won't be any major changes in contracts with their vendors.

[bubblegum tate]

I love looking at the horror show that is the cubs' payroll obligations for the next few years (Cot's Contracts link here). They already have 120 million on the books for '10, before factoring in significant raises due for Marmol and Theriot, among others.

 

I would think that if there is any possible way of getting out of the player contracts it would be explored, but (luckily) I can't imagine that it could actually happen.

[LouisEly]

I love looking at the horror show that is the cubs' payroll obligations for the next few years (Cot's Contracts link here). They already have 120 million on the books for '10, before factoring in significant raises due for Marmol and Theriot, among others.

 

I would think that if there is any possible way of getting out of the player contracts it would be explored, but (luckily) I can't imagine that it could actually happen.

If it could happen, 2/3rds of the teams in the NBA would be standing in line outside of that courtroom.