Loyola of Los Angeles Entertainment Law Review Volume 32 Number 3 Article 2 6-1-2012 Major League Baseball Team Bankruptcies: Who Wins? Who Loses? John Dillon Loyola Law School Los Angeles Follow this and additional works at: https://digitalcommons.lmu.edu/elr Part of the Law Commons Recommended Citation John Dillon, Major League Baseball Team Bankruptcies: Who Wins? Who Loses?, 32 Loy. L.A. Ent. L. Rev. 297 (2012). Available at: https://digitalcommons.lmu.edu/elr/vol32/iss3/2 This Notes and Comments is brought to you for free and open access by the Law Reviews at Digital Commons @ Loyola Marymount University and Loyola Law School. It has been accepted for inclusion in Loyola of Los Angeles Entertainment Law Review by an authorized administrator of Digital Commons@Loyola Marymount University and Loyola Law School. For more information, please contact
[email protected]. 07. DILLON (DO NOT DELETE) 12/30/2012 2:03 AM MAJOR LEAGUE BASEBALL TEAM BANKRUPTCIES: WHO WINS? WHO LOSES? John Dillon* Baseball is America’s sport. It evokes a sense of tradition and a love for the home team. Like all professional sports teams, however, baseball teams are part of a league, which restricts team ownership through contrac- tual “constitutional” provisions and agreements and limits the number of teams that exist. In this limited and restricted entertainment market, profes- sional sports teams operate highly lucrative businesses that sometimes seek bankruptcy protection through Chapter 11 reorganization. Bankruptcy gen- erally allows the debtor to alter existing contractual rights and restructure its operations to avert the financial crisis that precipitated the bankruptcy filing.