Along with the Texas Rangers, one of Texas’s own sports teams is going through bankruptcy. NHL hockey team the Dallas Stars filed for bankruptcy on September 15th.
The hockey team was founded in Minnesota in 1967 and was moved to Dallas in 1993. They have won seven division titles and the Stanley Cup in 1999. Hall of Fame players for the team have included Brett Hull, Ed Belfour, Joe Nieuwendyk, and brothers Derian and Kevin Hatcher.
The team owes vendors about $1.1 million and owes lenders about $448.5 million overall. Their assets are said to be between $100 and $500 million.
A week after filing, a plan was approved to sell the Stars. Former co-owner of the Texas Rangers, Chuck Greenburg was in competition with Vancouver hotel businessman Tom Gaglardi to bid on the team, but Gaglardi has signed to buy the team in November pending bankruptcy proceedings. Gaglardi, a passionate hockey fan, has previously attempted to buy the Vancouver Canucks hockey team. Gaglardi could possibly bring interest back to the franchise. The businessman’s $50 million offer includes $100 million in debt promised to lenders.
The team’s financial troubles can be explained by its lack of success. The Stars have not make the playoffs since the 2007-2008 season, and then the team had limited options to improve the team by singing new players with its financial difficulties. It has been said that owner Tom Hicks, a Dallas businessman, and the team’s management had difficulty communicating.
Hicks made the news recently for his hand in financially burying the Texas Rangers. Fans became angry after Hicks continued to appear at games throughout the ordeal. Hick is chairman of Hicks Holdings LLC, the owner of Hicks Sports Group, which is the company that formally owned the Rangers and is now selling the Stars to Gaglardi.
Several franchises have filed for bankruptcy recently, including the L.A. Dodgers and the Texas Rangers. The creditors from these bankruptcy cases usually include money owed to concession vendors, like beer and hot dogs.
The stars filed bankruptcy under Chapter 11, which allows companies to continue to operate while reorganizing and paying debt. The Stars chose to file out of state, which franchises often due to avoid the press of their home city.
Companies are feeling the financial strain, just as individual citizens are. Bankruptcy allows a solution to keep their games going while sorting out their financial business. Individuals may also file personal bankruptcy under Chapter 11, although it is usually filed by companies. Typically, individuals file Chapter 7 or Chapter 13. If you desire to file for bankruptcy, hiring a San Antonio bankruptcy attorney will get you started.
It just goes to show that everyone is feeling the financial strain, even if you are a professional sports team.