It’s not just people and businesses who have to file for bankruptcy protection. Professional sports teams can also need the financial protection afforded by bankruptcy.To illustrate, consider a recent feature story in the New York Post on the economic woes of the National Hockey League’s New Jersey Devils. According to the story, the Devils, three-time Stanley Cup champions, may be on the verge of bankruptcy as the team missed its Sept. 1 loan payment.This may not come as a surprise to anyone who follows the National Hockey League. The Devils, despite being one of the more successful teams in the league, have always struggled to attract fans to their home ice.

Outside of attendance problems, what else is causing these financial woes for the Garden State’s favorite hockey team?

The Post reports that the team is also struggling with a complicated ownership situation.

Specifically, the team’s principal owner and its co-owner — each of whom owns 47 percent of the Devils franchise — are squabbling. In fact, the team’s co-owner has unsuccessfully tried to sell his share of the team for about a year, the Post reports.Of course, the Devils are far from the only professional sports team facing financial troubles. Attendance, for instance, has been down significantly for most Major League Baseball teams, while many National Basketball League squads also saw their home crowds dwindle last season, too.

(Our own Phoenix Coyotes have endured their own share of financial troubles.)

These are difficult economic times, something that sports franchises are well aware of. Consumers aren’t spending nearly as much as they once did on entertainment. And that includes sporting events. Until the economy improves, and until the national unemployment rate falls, don’t be surprised to see even more professional sports teams perhaps teetering on the edge of bankruptcy.

Whatever the cause, whatever the reasons behind your financial difficulties, take the time to speak with an experienced legal or financial professional if you would like to learn more about Chapter 7 bankruptcy, Chapter 13 bankruptcy or additional debt relief options.

The New York Post “Devils skate to verge of bankruptcy” Sept. 12, 2011

Similar Posts:

Share