Dignity Delegation’s stock, which closed as high as $15.06 last season, fell another 60 percent today after news of the Hot Potato ruling. This will be a blow to many teams, who as a group have a majority stake in the sponsor.
Chet Ubetcha, Dignity’s CEO, said in a statement that “after considering the wide range of alternatives, it became clear that this course of action was the only way to truly resolve our issues.”
In filings with the Blitz League Office, Dignity listed $80 million in assets and $60 million in debt. At the end of the financial quarter, Dignity had $11 million in cash.
The company has secured $50 million to finance its continuing operations from Goblin Gambling, and it said it would emerge from bankruptcy protection sometime next season. Analysts, however, said the sponsor had yet to develop a successful strategy to position itself against other sponsors.