Hyding Out

Ticket to Bankruptcy Park - Not Owner Friendly Venue for Dodgers

I don't usually use this blog for matters outside the print and graphic communications industry. But I just heard that the Los Angeles Dodgers filed for chapter 11 and I can't resist commenting. The Dodgers chapter 11 filing is really surprising and potentially risky for the owners because they allegedly have been aggressive in using the team's finances to pay for their personal lifestyle.

Whether you own a printing company or a baseball team, bankruptcy is not a friendly stadium for owners who treat the business like a piggy bank. In fact, bankruptcy opens legal avenues for creditors (including Major League Baseball) to gain leverage in having owners put money back into the team. Not only are the owners exposed to greater risk of having to cough up money they already took out and probably spent, but bankruptcy court imposes disclosure requirements as to the team's finances that go back a number of years. These disclosures are done under penalty of perjury, adding risk to the process.  The owners will now be under a legal microscope with swords hanging over their heads. I can't believe that they would choose a ticket to Bankruptcy Park. There's got to be something more here that I'm not aware of.

John

The Standard Group Consummates Strategic Acquisition of Donald Blyler Offset

This transaction is a great example of the crossroads owners face in either investing for growth or planning for retirement via an exit from the business. 

The Standard Group, a leading company in the print and graphic communications industry, is taking a long term view of enhancing shareholder value. The DBO transaction comes shortly after a strategic acquisition TSG completed with NAPL's help a few months ago involving Whitmore Printing. 

Donald Blyler, founder of DBO, could have opted for "staying in the game" and reinvesting for growth, as this was not a debt-ladden entity or one facing imminent demise. But he felt that the timing was right for an exit from ownership mainly because of his comfort level with The Standard Group. Their reputation, track record of successful M&A, and financial strength all contributed to his decision. 

Click on the link below to read the NAPL press release announcing the transaction: 

Download 060911-3-StandardBlyler