Soccer has surged in popularity within the last two decades — due in part to the hosting of the World Cup in 1994, the welcoming of legendary British midfielder David Beckham to the LA Galaxy in 2007, and the recent success of the men’s and women’s national teams on international levels. Unfortunately, this has not stopped some U.S. teams from facing uphill operational and financial battles.
The owners of a United Soccer League team and a stadium have filed for Chapter 11 bankruptcy protection after determining it was necessary to reorganize debt incurred in 2012 and 2013. The announcement was made shortly before the start of the 2014 soccer season. A majority owner will provide interim debtor-in-possession financing so that the season and all activities will go forward as scheduled.
Chapter 11 bankruptcy protection is typically used to reorganize a business so that it may once again become profitable. While management continues to oversee and implement day-to-day business operations as usual, a bankruptcy court approves all significant business decisions.
The soccer team and stadium join a long list of businesses facing financial difficulty in a recovering, yet unstable, economy. Contemplating a filing for Chapter 11 bankruptcy in Ohio is a serious undertaking, usually reserved as a last resort.
The choice of a bankruptcy lawyer can greatly influence the way your case is handled and resolved. Thus, consulting with an experienced Ohio law firm that is able to address, and successfully convey, the pertinent issues concerning your bankruptcy is important, and this is one of the first steps toward effective reorganization.
Source: Pittsburgh Business Times, “Pittsburgh Riverhounds, Highmark Stadium owners file for Chapter 11 bankruptcy protection,” Patty Tascarella, March 27, 2014