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Scout Bankruptcy OFFICIAL

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  • PurpleJ
    PurpleJ Member Posts: 37,643 Founders Club
    bananasnblondes said:

    So what happens to Biggins, Huffman, and the guys who actually work for Scout?

    Scout works for them. Don't twist.
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  • Tequilla
    Tequilla Member Posts: 20,102
    CFetters_Nacho_Lover said:

    Tequilla said:

    AEB said:

    Tequilla said:

    It looks like KJV and company will get their pay checks ...

    However, if they cash the checks they are basically bounded to the wishes of the buyer and have no way to leave (likely have non competes in place as well) ...

    If they don't cash the checks, I'd imagine that they would have the option to either pull their site from the network as an independent or enter into an agreement with the new buyer. A prudent owner would make sure that they negotiated an out clause for themselves in case of a situation like this ... and if not, would have secured some kind of up front benefit.

    Dawgman has no leverage. They either accept payment, which they'll likely have to given payroll needs, or not. If they don't accept payment, they can leave once the ownership transfer occurs, but the timing of the ownership transfer is TBD. Either a buyer will emerge or the DIP loan holders will assume ownership. But that could be a few months. Dawgman would have to meet its own financial obligations without the residual payment from scout for an undetermined time period. Better start selling advertising to the Dub Pub again...
    AEB said:

    Tequilla said:

    It looks like KJV and company will get their pay checks ...

    However, if they cash the checks they are basically bounded to the wishes of the buyer and have no way to leave (likely have non competes in place as well) ...

    If they don't cash the checks, I'd imagine that they would have the option to either pull their site from the network as an independent or enter into an agreement with the new buyer. A prudent owner would make sure that they negotiated an out clause for themselves in case of a situation like this ... and if not, would have secured some kind of up front benefit.

    Dawgman has no leverage. They either accept payment, which they'll likely have to given payroll needs, or not. If they don't accept payment, they can leave once the ownership transfer occurs, but the timing of the ownership transfer is TBD. Either a buyer will emerge or the DIP loan holders will assume ownership. But that could be a few months. Dawgman would have to meet its own financial obligations without the residual payment from scout for an undetermined time period. Better start selling advertising to the Dub Pub again...
    Exactly ... a smart business would have started planning for this the last few months at minimum
    You have referred to a smart business owner and a prudent business owner twice in this thread. You realize we are talking about Kent fucking Griswold here, right? Neither of those descriptions apply.
    You don't say (insert $75k wink) ...
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  • Sources
    Sources Member, Swaye's Wigwam Posts: 4,344 Founders Club
    bananasnblondes said:

    So what happens to Biggins, Huffman, and the guys who actually now work for Scout247?

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  • doogie
    doogie Member Posts: 15,072
    It's called bankruptcy protection you people

    This is simply a savvy strategic business maneuver by tLPT
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  • Tequilla
    Tequilla Member Posts: 20,102
    bananasnblondes said:

    So what happens to Biggins, Huffman, and the guys who actually work for Scout?

    They are likely tied to some kind of employment contract ... Biggins probably has some form of legit contract whereas Huffman is probably more of an at will employee.
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  • UWhuskytskeet
    UWhuskytskeet Member Posts: 7,113
    doogie said:

    It's called bankruptcy protection you people

    This is simply a savvy strategic business maneuver by tLPT

    Helped Trump imo.
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  • AZDuck
    AZDuck Member Posts: 15,381
    The debtor went through a period of upheaval in July when founder and CEO Jim Heckman was ousted. Scout has claimed that Heckman was fired for cause and allegedly misused corporate funds for personal expenses.


    Emails obtained by sports media blog AwfulAnnouncing.com showed Heckman calling his ouster "pure fraud" and the website's product and engineering staff resigning en masse over Heckman's firing and a takeover of the company by Russian investors.


    The product staff also alleged they had been receiving paychecks late and had been locked out of Scout's Seattle office after they asked the board of directors to be paid on time.


    Heckman founded Scout in 2001 and sold it to News Corp.'s (NWSA) Fox Sports in 2005 for about $60 million. Pilot Group-backed North American Membership Group bought Scout back in 2013 for an undisclosed price and installed Heckman as CEO.
    image
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  • TierbsHsotBoobs
    TierbsHsotBoobs Member Posts: 39,680
    doogie said:

    It's called bankruptcy protection you people

    This is simply a savvy strategic business maneuver by tLPT

    Helps Trump IMO
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  • puppylove_sugarsteel
    puppylove_sugarsteel Member Posts: 9,133
    Sources said:

    DerekJohnson said:

    It's sad to see how far Kim Grinolds has fallen.

    It's not sad in the least.
    1. Lurke a little, then post. 2. Hit Webster's and seek sarcasm
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  • FreeChavez
    FreeChavez Member Posts: 3,223
    I guess the camry won't be fueling up in December
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