Association of Volleyball Professionals (AVP) in danger zone
As it is generally known that unlike other major sports leagues, volleyball has a different way of interacting with sponsors and investors. It heavily relies on the sponsoring bodies but at the end of 2010 season, it has been revealed that AVP is going in
loss. The AVP 2010 tour couldn’t raise enough funds and dropped a few events. The financially distressed AVP had to end the 2010 Pro Beach Volleyball tournament early this year. The Association has filed for Chapter 11 bankruptcy protection on Friday, 29th
October, 2010 in Los Angeles. The body reported nearly $184,000 in assets, while $5 million in debts in its bankruptcy petition.
The Pro Beach Volleyball Tour left the fans in surprise as it ended before the Manhatton Beach Open this year. The 2010 season was actually supposed to cover 12 events but funds deficiency forced the AVP to spike the last five events of the season. Now AVP
is desperately seeking for investors, in order to save the association and future tournaments. They association has applied for $500,000 loan on immediate basis. They will be in the court on Thursday to seek approval of their bankruptcy loan.
This is not the first time that AVP is facing this kind of problem. The organization has long stood on shaky ground as they also filed a bankruptcy in 1990. However, the AVP found new owners who put great efforts and improved the revenues. AVP’s common stockholders
included MLB Advanced Media LP, Fox Sports Net Inc., Am Trust International Insurance Ltd, RJSM, NBC, Quincy Jones and Shaquille O’Neal.
Somehow, the clouds of uncertainty always surrounded AVP as it failed to produce a huge profit. In 2007, Roy Disney came up with a proposal of $36.9 million to buy AVP but the shareholders refused the deal considering it a very low bid. In 2008, AVP saw
a big boost in the form $3.5 million capital through investment firm RJSM Partners LLC.
Once again, the Association of Volleyball Professional is standing at the verge of selling its assets and RJSM is AVP’s proposed bankruptcy lender. They gave 25 days’ time to raise $4 million but company failed to do and resulted in the tour’s shutdown.
The former AVP Chief executive, Jason Hodell commented that, “And there were no other offers and investors that were willing to step up and save the tour, and that was very disappointing.”
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