According to an article in the Star-Telegram, the Chicago Cubs is filing Chapter 11 bankruptcy in an effort to make it easier to sell the sports team.
The article said:
“The team filed for bankruptcy in Delaware on Monday. The move was anticipated as the Tribune Co. looks to complete an $845 million sale of the team, Wrigley Field and related properties to the family of billionaire Joe Ricketts… The team’s brief stay in Chapter 11 is expected to protect the team’s new owners from potential claims from Tribune creditors.”
According to some analysts, the sale of the Chicago Cubs using bankruptcy is designed to protect the sports team from the Tribune’s creditors and save nearly $300 million in taxes. The IRS is expected to challenge the sale of the sports team in bankruptcy. However, the Chicago Cubs bankruptcy process is still expected to be quick and relatively painless. Judge Carey who is presiding over the sports team’s bankruptcy has already given his stamp of approval on the Cubs’ bankruptcy and the sale of the team. In speaking of the transaction, he said that the bankruptcy and sale was for “a sound business reason” and that it was done in good faith.