Sports fans and investors alike look forward to riding the ups and downs of the season with their favorite team year after year. Unfortunately, some New Jersey season ticket holders and charitable organizations have been recently deprived of that opportunity– and have been trying to get a refund since.
The Trenton Titans hockey team went out of business last year and announced that they would not be going forward with the 2013-2014 season. At the time of the announcement, it owed almost $500,000 to professional hockey teams, nonprofits and season ticket holders, as well as other creditors.
The team filed for Chapter 7 bankruptcy protection this past March. Chapter 7, or liquidation bankruptcy, involves the sale of a debtor’s non-exempt assets by a trustee. According to filings made by the team’s ownership, the Titans made less than $500,000 in 2012 and less than $1 million in 2013. Currently, the team has no assets.
The nonprofit organizations to which the team owes money agreed to mediation efforts by county officials. Through the successful mediation, two organizations were paid the full amounts promised them from monies generated through promotional events. Another organization was paid half the money it was promised.
Unfortunately, fans that purchased advance season tickets in 2013 are owed amounts ranging from almost $150 to more than $3,000 each. This has encouraged more than 20 fans to pursue a class action lawsuit against the hockey team.
Bankruptcy offers relief to businesses that are struggling with debt, and the ability to deal with their financial status without distractions from creditors. In cases such as this, it is in the best interest of those involved to seek assistance from a bankruptcy attorney.
Source: Times of Trenton, “Bankrupt Trenton Titans hockey team still owes nearly $500,000 to creditors,” James McEvoy, Jun. 8, 2014