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
Bankruptcy is a serious state. Companies should see the potential risks that bankruptcy can cause firsthand. It's good to prevent rather than making corrective actions for it.
Posted by: Tracy Pierre | November 04, 2011 at 01:37 PM