There are many organizations and businesses in New Jersey that are dedicated to achieving success. However, there are often a variety of different factors at play that could ultimately impact the ability to be successful — often, these factors may be beyond the control of decision-makers. For example, there seems to be a variety of factors at play in the decision of the Arena Football League’s decision to file for Chapter 7 bankruptcy.
The AFL, an indoor football league, reportedly shut down its business operation units and team services approximately one month ago. Court filings indicate that the league holds approximately $22 million in liabilities and $1.28 million in assets. Their largest creditor, to which they owe $3.7 million, is Anacostia Sports.
Despite the recent filing, a representative for the company claims that season ticket sales had been on the rise. Though the AFL made attempts to improve the success of the league by taking action to make the game more appealing to spectators by shortening games, among other actions, it reported $8.2 million in gross revenue at the time of the filing, compared to $13.1 million in 2018. One of the struggles the company faced is a recent lawsuit filed by insurance carrier National Union; the company claims that the AFL owes it $2.4 million as part of insurance coverage it provided from 2009-2012.
While some forms of bankruptcy allow a business to restructure its debt and remain open, a Chapter 7 filing means that the company will close. Unfortunately, even when decision-makers are dedicated to success, they face financial issues that are sometimes insurmountable, forcing them to make difficult decisions. In a situation such as this, people in New Jersey often feel better prepared to make these decisions with the help of an experienced attorney.