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August 10, 2011

Dodgers' merchandise vendor cries foul

"As the Dodgers operate under bankruptcy protection, their merchandise vendor has asked the U.S. Bankruptcy Court for protection from the Dodgers.

With Dodger Stadium merchandise revenue down by 25% this season, Facility Merchandising Inc. (FMI) could face a "business-threatening event" if the court does not intervene on its behalf, the company attorneys wrote in a court filing.

FMI pays the Dodgers a minimum of $4.5 million per year under a contract that extends through 2017, according to court papers. In its filing, FMI claims it will lose about $2.5 million over the first two years of the agreement.

The company contends it could recoup those losses over the life of the contract. However, bankruptcy law affords the Dodgers the option to walk away from the contract. FMI wants the court to order the Dodgers to decide whether to honor or reject the contract by the end of the season, before the company has to make this year's payments to the Dodgers and buy next year's merchandise."

Read the article here.

August 10, 2011 in Current Affairs | Permalink

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