Good news, friends: this financial crisis currently entangling the U.S. and now global market? It ain’t quite at rock bottom yet. (When it does hit rock bottom, people that know what they’re talking about have told me to buy a Johnson & Johnson or GE or UPS, in hopes of hitting a solid double when the market recovers. If this sounds like a bad idea or you know something else, all stock and financial tips can be sent to rcorazza at mouthpiecesports dot com. I will write you mediocre blog posts in return for your favor.)
We know it’s affecting the sporting world to a point, but as Darren Rovel of CNBC mentions today, it’s likely a franchise is going to go bankrupt.
The best guess, according to those in the know, is that if the bear market continues, a team will likely file for bankruptcy by February or March. Who is it going to be? It’s hard to say unless you analyze every owner’s unique financial situation. But it’s generally believed that if a team files in the near future, odds are it will be an NHL team, they reason. That’s because it’s the sport with the least cash flow and probably has the owners with the lowest net worth. In fact, since 1974, a major professional sports team has filed for bankruptcy five times and every single one of them was a National Hockey League Team.
Poor, hockey. Always the little guy getting picked on. And what’s even crazier is that the Penguins — who you’d traditionally think of as a pillar of stability in the NHL — have filed for bankruptcy twice, and still have been able to survive.
So, I guess anyone putting their money on a certain Boston franchise to file for bankruptcy may not even get the end result they’re looking for. Dang.