This comment will focus on how this second key difference implemented in the Warriors’ PSL would affect an eventual bankruptcy proceeding of a purchaser into their “membership program.” In the event of a purchaser filing for bankruptcy liquidation under chapter seven of the bankruptcy code, the PSL will join the rest of the bankrupt’s assets in becoming property of the now-bankrupt purchaser’s creditors estate. Purchasers into the Warriors’ offering can be either individuals or corporations. This comment will provide an analysis of how the debtor, estate, and team will likely fare in terms of recouping the value of the PSL as an asset in the event of a purchaser’s liquidation in bankruptcy.
The New Gold Standard for Sports PSLs: The Provisions that Allow the Golden State Warriors to Overpower a Bankruptcy Estate,
13 J. Bus. Entrepreneurship & L.
Available at: https://digitalcommons.pepperdine.edu/jbel/vol13/iss2/8