In this article, we will talk about a huge business in the world and some of its most important bankruptcy cases in it; the sports industry.

1. BY SUZZANNE UHLAND
Three bankruptcy cases in
sports franchises
Image courtesy of Keith Allison at Flickr.com

2. Three bankruptcy cases in sports
franchises
We have seen in other posts, multiple bankruptcy cases in
different industries, like oil and gas, technology, or
communications. We have also talked about the
bankruptcy legislation in the United States, seeing some of
the most important concepts about it. Thanks to all these
articles, we can have a better understanding of what
bankruptcy is and how companies from any sector should
know what it means and how to assume a bankruptcy
process if they have liquidity problems or credit payment
issues.
In this article, we will talk about a huge business in the world
and some of its most important bankruptcy cases in it; the

3. Three bankruptcy cases in sports
franchises
sports industry. It could be considered one of the biggest
businesses in the world, moving not only tons of money in
every nation of the planet but also passion and the most
important fan's feelings. Due to this, different teams, from
any sports discipline, have great responsibilities and duties,
fulfilling with the most significant commitments and desires
of their fans, but when they do not take the adequate
decisions, liquidity problems can appear.
As we mentioned, bankruptcy could be present in any
company, no matter what its industry or size is. If it has a
bad administration or takes unwise decisions, they could
face a bankruptcy process. We will see now some of the

4. Three bankruptcy cases in sports
franchises
most notable bankruptcy cases in the sports industry,
where the bad decisions have made that even great
and very recognized sports franchises face solvency
processes.
The Texas Rangers in 2010
Founded in 1972 after being known as the Washington
Senators, the Texas Rangers have been one of the most
important and traditional teams in the Major-League
Baseball. Currently, they have two American League
titles (2010 and 2011) and seven West Division Titles. In
addition, this team has had amazing players like Johnny
Oates, Nola Ryan, Fergie Jenkins or Tom Schieffer.

5. Three bankruptcy cases in sports
franchises
In 2009, after an amazing season, the club owner Tom
Hicks, who is a recognized investor and sport executive,
who had participation in significant sport franchises
besides the Texas Rangers, like Liverpool F.C., the Dallas
Stars and the Mesquite Championship Rodeo, had
different financial problems with his sport holding called
Hicks Sports Group. Due to these liquidity issues, the Hick
Sports Group reached unpaid debts for more than $525
million dollars, making to its owner to sell the majority
participation of the team.
In 2010, the Texas Rangers franchise was sold to a
business group formed by the lawyer Chuck Greenberg

6. Three bankruptcy cases in sports
franchises
and the team’s president Nolan Ryan for almost $570 million
dollars. The team was auctioned and other great businessmen
like Mark Cuban, the Dallas Mavericks owner or James Crane,
offered for the team but was Goldberg and Ryan who made
the best offer to buy the team.
The Phoenix Coyotes in 2009
Founded in 1996 after being known as the Winnipeg Jets, this
team faced bankruptcy in 2009 due to the financial crisis of
the club owner, Jerry Moyes’. In that year, Jim Balsillie, a
Canadian businessman and CEO of the technology company
Research in Motion, wanted to buy the team to moving it to
Canada, but the National Hockey League board did not
approve this initiative.

7. Three bankruptcy cases in sports
franchises
In that same year, after different failed negotiations and
propositions, the National League bought the team for
more than $140 million dollars, so it played the 2009-2010
season. In 2013, the Glendale City Council arranged with
the Renaissance Sports and Entertainment group for
almost $225 million dollars for managing the team during
15 years. In 2014, under this administration, the Phoenix
Coyotes changed its name to the Arizona Coyotes.
Moreover, the Renaissance Sports and Entertainment
group is building a new stadium for the team, which will
be finished in 2020.

8. Three bankruptcy cases in sports
franchises
The Baltimore Orioles in 1993
This team is one of the most recognized and traditional in
the Major-League Baseball. Founded in 1901, and having
won three World Series Titles (1966, 1970 and 1983), seven
American League trophies, and nine East Division
Championships, the Baltimore Orioles faced bankruptcy
in 1993.
After years of success and incredible seasons, in 1993,
the club had liquidity problems when its owner, Eli
Solomon Jacobs, a recognized American investor and
lawyer, faced financial issues due to his debts and
unpaid credits. In this same year, the Baltimore Orioles

9. Three bankruptcy cases in sports
franchises
was auctioned, being bought by the Baltimore-based attorney
Peter Angelos for more than $170 million dollars. Angelos is the
current owner of the team and has made important and good
investments in it.
Another well-known sports teams’ bankruptcy cases have been
Los Angeles Kings, who faced financial issues in 1995, being sold
by its owner Bruce McNall and bought by Ed Roski and Phil
Anschutz for more than $120 million dollars. Other cases are the
Pittsburgh Penguin, who faced bankruptcy in 1975 and 1998, the
Ottawa Senators and the Buffalo Sabers in 2003.
Related: Four bankruptcy cases in the technology industry by
Suzzanne Uhland