Phoenix LXXII: Send in the Clowns
View Single Post
02-13-2013, 12:10 AM
Join Date: Feb 2012
Originally Posted by
But if CF's take on events are to be believed, they were not going to sell the team without somehow voiding the AMULA first. Had they not extracted the subsidies discussed, Moyes was going to put the team into BK, even without Balsille. RIM Jim was just a convenient out and a nice wrench to throw into the process once it became clear that Moyes was going to be dicked over. I don't think anyone reasonably expected Balsille to succeed in his bid. Had Glendale decided to take the money and run, things would have been more interesting. But the right to own and operate a franchise in a location dictated by a league was beyond the scope of the BK court, if I remember right, and wasn't specifically addressed in the ruling. Balsille's bid made creditors more whole, but left the city unfulfilled in so far as they no longer had a team.
Well (and I don't remember if it was CF) but the sale to Reinsdorf gave them an AMF replacing the lease that existed.
As for Balsillie/Moyes, it was presenting as Balsillie's lawyer was searching for a movable team and he initiated the talks to sell the team.
What Moyes submitted is whats called a "prepackaged bankruptcy" thats where you file and submit a plan at the same time. Usually bankruptcies are in more of a crisis situation and there is a cooling off period.
Anyway what the court ruled was that you couldn't use bankruptcy to circumvent your franchise agreement. In the ruling he cited the hypothetical of someone putting a McDonalds franchise in bankruptcy and then trying to move it to a more desirable location. The other leagues filed supportive statements because they were afraid of other teams doing that. So if Balsillie had been allowed to do it then it wouldn't have stopped say Mike Bloomberg from buying the Dodgers in bankruptcy and moving them back to Brooklyn.
View Public Profile
Find More Posts by aqib