Texas Debt Defense Attorneys:Bankruptcy Lawyer

 

Debt Management Law News

June 30, 2011

How Bankruptcy Can Lead to Victory

Los Angeles Dodgers owner Frank McCourt's decision to file for Chapter 11 bankruptcy protection this week set tongues wagging across the country. The Dodgers are the most prestigious organization to take this action in recent memory. But if history is any guide, hope is hardly lost.

In the four major sports, there have been at least 11 other instances of teams filing for bankruptcy protection since 1970. Though only one has won a title since (the NHL's Pittsburgh Penguins), most of them got their act together on the field not long after their financial woes.

The most recent example is baseball's Texas Rangers. They filed for Chapter 11 in May 2010 and wound up reaching the World Series for the first time that October. The NHL's Ottawa Senators went through a similar situation in 2003, winning the Presidents' Trophy for the league's best regular-season record just a few months after entering bankruptcy protection. Even the Phoenix Coyotes have managed to go 93-51-20 after bankruptcy in May 2009.

That's not to say that bankruptcy is always a recipe for glory. The NHL's Los Angeles Kings haven't advanced past the playoffs' second round since their financial trouble in 1995, and it took the Penguins 16 years to reach a Stanley Cup final after their bankruptcy filing in 1975. The Dodgers beat the Minnesota Twins 15-0 Monday following McCourt's move, but have lost their last two. It could be worse, though: The NHL's Cleveland Barons went bankrupt in 1978 and merged with the Minnesota North Stars. They remain the last major American sports franchise to cease operations.

online.wsj.com

Sometimes, debt can be overwhelming, and bankruptcy becomes necessary.
Bankruptcy can sometimes be difficult. If you are considering bankruptcy, contact the Houston bankruptcy lawyers of Weston & Associates, PLLC at 713-623-4242


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