The Pittsburgh Riverhounds’ playing roster will be unaffected by this morning’s announcement that the limited partnerships owning and operating the team and Highmark Stadium have filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code.
Majority owner Tuffy Shallenberger will provide financing to allow the Riverhounds to compete as planned in this year’s United Soccer Leagues Pro Division, a club spokesperson told The Soccer Observer.
“The payroll that we have has nothing to do with this,” the spokesperson said. “The majority of this relates to stadium-related construction costs.”
Unplanned expenses during the development of the privately owned 3,500-seat Highmark Stadium have saddled Pittsburgh with high debt levels, hindering the club’s ability to generate revenue. Corporate restructuring is seen as necessary to ensure the Riverhounds’ long-term viability.
Under a Chapter 11 filing, companies generally receive 120 days to submit a reorganization plan that must be approved by creditors before being confirmed by the court. Failure to receive confirmation could lead to liquidation under Chapter 7 of the U.S. Bankruptcy Code.
Riverhounds head coach Justin Evans and his players begin the 2014 season at defending champions Orlando City on Saturday evening. Pittsburgh’s home opener takes place on April 12 against the Wilmington Hammerheads.
All other planned activities at Highmark Stadium will proceed as scheduled, as will the club’s academy training programs.
“We want our employees, fans and sponsors to know that our commitment to growing the game of soccer and to realizing the full potential of Highmark Stadium will continue during the reorganization process,” said Shallenberger in a press release.
Oct. 30, 2013 — Pittsburgh Eyeing Orlando’s Status Within USL