Often, a professional sports team is run by an ownership group instead of just one individual. In situations such as the one that the minor league Trenton Titans ECHL hockey team is currently facing, having an ownership group instead of a single owner could make filing for Chapter 7 bankruptcy more difficult. Florida residents who own or co-own sports teams may be interested in the decisions confronting the Titans ownership.
The team was taken over by Blue Line Sports, LLC in 2011 after its previous owner relinquished the team. Even though the team was turned over yet again in 2012 to a different ownership group, Blue Line Sports, LLC is still listed as co-debtors on the bankruptcy documents. The Trenton Titans owe almost $500,000 to various creditors.
Two of the larger portions of debt are owed to the New Jersey Devils for "player transactions" ($12,000), and they also owe the team's primary affiliate -- the Philadelphia Flyers -- $70,000. The team noticeably began losing money when it failed to make the playoffs four years in a row, causing game attendance to dwindle. The team quit playing last April, and fans of the team must be reimbursed for their 2013-2014 season tickets.
Not every business venture turns out successful; however, that does not mean that an owner should have to be in debt for the rest of his or her life. Filing for Chapter 7 bankruptcy may be a viable option for any professional sports team owner or other type of business owner -- in Florida as well as the rest of America. Since so many co-debtors and co-owners are involved in these current proceedings, this may be an intricate process. Those involved in the bankruptcy proceedings have the option to consult with a professional in an effort to protect their individual rights and to assist them in making responsible decisions that also safeguard their separate interests.
Source: The Trentonian, Trenton Titans file for Chapter 7 bankruptcy, owe Devils and Flyers money among others, Mike Ashmore, March. 19, 2014