5 Most Famous Baseball Bankruptcies
The world of baseball is quite familiar with the process of bankruptcy filing. This includes big league players making terrible financial decisions, as well as major teams losing business and having to file for bankruptcy.
For instance, in 2012, Jose Canseco had a public and major bankruptcy filing, as he was in $1.7 million debt. [1] But players aside, major teams like the Los Angeles Dodgers or the Chicago Cubs are not safe from financial disasters either.
This brings us to the top 5 most famous baseball bankruptcies. Let’s talk about them.
1. Los Angeles Dodgers (2011)
The year 2011 resulted in quite a troublesome few months for the Los Angeles Dodgers. The team faced a major ownership dispute, which began when Major League Baseball (MLB) took over the team and pushed out the owner, Frank McCourt, in April of 2011. [2]
This led to financial turmoil and problems, which would culminate in a bankruptcy filing in June of 2011. In the filing, the Dodgers requested a $150 million loan, which would ensure the team met its payroll obligations. The plan would barely come to fruition, as the team was sold to Guggenheim Baseball Management in May of 2012.
The team was sold for $1.4 billion, which was approved by the local bankruptcy court. However, the final cost of the team was roughly a little over $2 billion. The sale also concluded any bankruptcy obligations, as the new owners settled disputes and paid off debtors. As of 2024, the team’s worth was estimated to be around $5.45 billion. [3]
2. Seattle Pilots (1970)
The Seattle Pilots are the only Major League Baseball team that lasted only one season. In 1969, the team’s performance was not terrible, but it was not good either. Estimates suggest that fewer than 650,000 fans came to see the Pilots during the season, which resulted in financial struggles for the team.
The Sick’s Stadium’s high-ticket prices also played a part in low ticket sales, which ultimately led to a bankruptcy filing in the early 1970s (exact date not known). By the end of March 1970, a federal court in Seattle approved the bankruptcy filing. [4]
The $10.8 million sale of the team to MLB would result in the team being renamed as the Milwaukee Brewers. This would also mark the official end of the Seattle Pilots’ infamous one-season.
3. Baltimore Orioles (1989)
The Baltimore Orioles had multiple managers and owners from 1989 until 1993. In 1989, due to financial losses and uncertainty around the team, Edward Bennet Williams would sell the team to Eli Jacobs under a bankruptcy agreement.
Jacobs had bought the team for around $70 million, as the team continued playing. However, Jacobs would file for bankruptcy in 1992-1993 due to debts upwards of $174 million. This would lead to the auction of the Baltimore Orioles in July-August of 1993, where multiple groups bid for the team’s ownership.
The auction resulted in a record $173 million sale of the team, which was the largest ever sum paid for a team’s ownership at the time. [5] The bankruptcy filing led to the team being auctioned off to Peter Angelos, who would then sell it in 2024 for a whopping $1.725 billion.
4. Chicago Cubs (2009)
After the Pilots and the Orioles, the Chicago Cubs went on to become the third team in MLB history to file for bankruptcy. The team was going through dire financial issues, which were mainly due to the Tribune Company (Cubs’ owners) going through financial difficulties. [6]
The bankruptcy filing was to separate the team as an entity, instead of an asset. This allowed the owners to put the team up for sale, aside from the financial problems of The Tribune Company. The initial price tag approved by the bankruptcy court was around $845 million.
The court approved this sale by October of 2009, which allowed the owners to receive around $740 million in cash. This was to ensure the owners could settle their debts and pay off any creditors. The ownership was transferred to the Ricketts family, who still own it. As of March 2025, the Chicago Cubs are estimated to be worth around $4.6 billion.
5. Texas Rangers (2010)
Another major bankruptcy filing from an MLB team happened in 2010, when the Texas Rangers were plagued by financial troubles. The team owed creditors around $525 million, which led to the necessity of bankruptcy filing. [7]
This voluntary filing was supported by the owners of the team at the time, as well as MLB and Ryan’s group. By the time the bankruptcy was finalized, Nolan Ryan and Chuck Greenberg had bought the team for around $593 million (approximately).
By August of 2010, the ownership rights had transferred to Rangers Baseball Express LLC (Ryan Nolan and Chuck Greenberg’s group). This would mark only the second time a major league baseball team was sold through a bankruptcy auction.
Other Baseball-Related Bankruptcy Filings:
- Lenny Dykstra – 2009
- Josh Hamilton – 2015
- Bernie Williams – 2016
- Bobby Bonilla – 2009
- Carl Pavano – 2013
- Rafael Palmeiro – 2014
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FAQs
The only three times in recent history that teams have filed for bankruptcy include the Los Angeles Dodgers, Chicago Cubs, and Texas Rangers. The 2008 economic collapse is commonly associated with the financial troubles these teams faced, which led them to file for bankruptcy.
MLB has historically agreed with bankruptcy filings, as long as it has some control over team ownership and adherence to the league rules. In some cases, it has even assisted or played the mediator for bankruptcy filings.
MLB wants all teams to meet with the constitution that all clubs must follow. This means MLB rules usually influence team transfers, franchise rights, and approval of sales or asset agreements.
Sources:
[1] Former All-Star Canseco files for bankruptcy. (2012). MLB.com. https://www.mlb.com/news/former-all-star-canseco-files-for-bankruptcy/c-35949766
[2] Restructuring, W. (2016, June 6). MLB, McCourt and Magic: Revisiting the Los Angeles Dodgers’ bankruptcy five years later. Weil Restructuring. https://restructuring.weil.com/case-overviews/mlb-mccourt-and-magic-revisiting-the-los-angeles-dodgers-bankruptcy-five-years-later/
[3] Wikipedia contributors. (2025, October 10). Los Angeles Dodgers. Wikipedia. https://en.wikipedia.org/wiki/Los_Angeles_Dodgers#
[4] What happened to the Seattle pilots? (2023, May 12). All Sports History. https://allsportshistory.com/2021/11/27/what-happened-to-the-seattle-pilots/
[5] Bologna, G. (2024, February 1). Peter Angelos bought the Orioles for a shocking price in 1993. It paid off. The Banner. https://www.thebanner.com/economy/baltimore-orioles-sale-angelos
[6] Reporter, G. S. (2017, July 15). Chicago Cubs baseball team files for bankruptcy protection. The Guardian. https://www.theguardian.com/sport/2009/oct/12/chicago-cubs-bankruptcy
[7] Adams, R. (2017, November 28). Texas Rangers saga shows Tom Hicks’s hallmark is debt and discontent. The Guardian. https://www.theguardian.com/football/2010/oct/08/liverpool-texas-rangers-tom-hicks
