Judge Denies Bonuses For Executives Who Bankrupted Sports Authority

Judge Denies Bonuses For Executives Who Bankrupted Sports Authority


A BANKRUPTCY JUDGE HAS RULED
AGAINST GIVING LARGE BONUSES TO EXECUTIVES WHO WORKED FOR SPORTS
AUTHORITY. FOR THOSE OF YOU WHO DON’T KNOW, SPORTS AUTHORITY NOT
ONLY FILED FOR BANKRUPTCY, IT IS CLOSING ALL OF ITS STORES. INITIALLY WAS HOPING YOU COULD KEEP SOME OF ITS 400+ STORES OPEN, BUT THEY WERE UNABLE TO DO
SO SO THEY HAVE TO CLOSE EVERYTHING. BY THE WAY, SPORTS
AUTHORITY WAS OVERPRICED. JUST KEEPING IT 100. YOU CAN FIND
EVERYTHING THAT IS FOUND AT SPORTS AUTHORITY AT TARGET FOR
20 BUCKS. THAT IS NOT IN A RANDOM ADVERTISEMENT FOR TARGET
BUT THEY SHOULD ADVERTISE WITH US BECAUSE I LOVE THEM.>>SUPER RANDOM. THEY LIQUIDATE
EVERYTHING INCLUDING THE NAME SPORTS AUTHORITY. THE PEOPLE WHO
RUN SPORTS AUTHORITY IS ANOTHER SPORTS COMPANY CALLED DICK’S.>>DICK’S SPORTING GOODS.>>THERE IS ONE IN MY HOMETOWN OF
NEW JERSEY. EVERY TIME I DRIVE BY IT, I KNOW I AM A CHILD, BUT I THINK DICK’S ARE
SUPPORTING GOODS.>>BEST BUY ADOPTED TO AMAZON,
PRICE MATCHING, SMART. PLACES LIKE SPORTS AUTHORITY, NOT SMART. I WANT TO GO PICK UP STUFF ON
CAMPING AND I WAS ABOUT TO SPEND $3000, THAT IS CRAZY.>>LET ME JUST GET INTO THE
HEART OF IT. IN DEFENSE OF THE EXECUTIVES,
WHAT?>>LET ME GIVE YOU THE
NUMBERS REAL QUICK.>>WHERE THEY SQUEEZING
FOR DICK’S NOW?>>YOU GUYS FAILED. WHY IS IT ñ
NO, YOU DON’T DESERVE BONUSES. I DON’T CARE WHAT YOUR DEFENSE IS. INDEFENSIBLE.>>I AM NOT SAYING THEY SHOULD
GET BONUSES, BUT HERE’S THE DEFENSE. ONCE THE COMPANY GOES
BANKRUPT, EVERYONE CAN GO TO ANOTHER JOB. SO, WHAT AM I GOING TO STICK AROUND HERE FOR? OVERSEE A COMPANY THAT DOESN’T EXIST ANYMORE? BUT YOU NEED
PEOPLE TO OVERSEE IT SO THEY CAN GIVE THE MOST THAT THEY CAN GIVE
BACK TO THEIR CREDITORS. SO PEOPLE WHO MIGHT HAVE LENT MONEY
TO SPORTS AUTHORITY, OR THIRD-PARTY VENDORS WHO HAVE
EMPLOYEES WHO NEED THAT MONEY SO THEY CAN PAY THEIR WORKERS. SO
THE CREDITORS, YOU HAVE TO TAKE CARE OF THAT. THE EXECUTIVES
ALSO ARE THE ONES THAT KNOW HOW TO RUN THE COMPANY. IF YOU
BROUGHT IN AN OUTSIDE PERSON TO HAVE AS MUCH EXPERTISE ON WHAT
IS GOING ON AND IT WOULD TAKE THEM LONGER TO STUDY UP, CATCH
UP ON HOW THINGS WORK, AND THEN DO THIS. IN THE MEANWHILE YOU
ARE LOSING MONEY FROM THE CREDITORS, SO FROM THE CREDITORS
PERSPECTIVE THEY WANT TO GO, I WILL GIVE YOU A LITTLE BONUS TO STAY THROUGH THE BANKRUPTCY TO
DO IT AS EXPEDITIOUSLY AS POSSIBLE SO I CAN GET MORE
OF MY MONEY BACK.>>HOW ABOUT YOU GET A SALARY AS
YOU STAY AND FINISH THE JOB AND THE COMPANY THAT YOU PLAYED A PART IN DESTROYING?>>THIS IS THE INCREDIBLY FRUSTRATING
PART BECAUSE THEY WILL GO, NO.>>THAT IS INDEFENSIBLE. THAT IS THE WORD RIGHT?>>YES.>>IT CAN BE INDEFENSIBLE, BUT
HAPPENED. DON’T GET ME WRONG, SUPER FRUSTRATING LIKE ANA SAID. THESE ARE USUALLY THE SAME EXECUTIVES WHO BANKRUPT THE COMPANY. NOW YOU GET A BONUS FOR
BANKRUPTING THE COMPANY. DO THE WORKERS OF SPORTS AUTHORITY GET BONUSES? NO. THEY JUST GOT PINK
SLIPS. NOBODY GOT A BONUS FOR CLEANING UP THE STORE. THEN WHAT
IS A CONSTRUCTIVE SOLUTION? I THINK SINCE THE BONUSES HURT, ON
AT LEAST THE TOP EXECUTIVES ñ YOU WANT TO HAVE OTHER PEOPLE,
FOR EXAMPLE LAWYERS, THEY DIDN’T BANKRUPT THE COMPANY BUT YOU
NEED THEM IN A BANKRUPTCY. YOU WANT TO INCENTIVIZE THEM TO
STAY? GREAT. BUT THE TOP EXECUTIVES, YOU ARE SUPER LUCKY
TO GET THE SALARY YOU ARE GETTING. IF YOU THINK YOU ARE SO
SURE YOU’RE GOING TO GO TO ANOTHER COMPANY LIKE DICK’S AND
MAKE MORE MONEY? I GUESS I WILL LET YOU GO AND BRING IN SOMEBODY
NEW TO OVERSEE THE BANKRUPTCY, IT MIGHT COST ME MORE BUT I HAVE
TO DO WHAT I HAVE TO DO BECAUSE I CANNOT IN GOOD CONSCIENCE PAY
YOU A BONUS FOR BANKRUPTING THE COMPANY. AT THE END OF THE DAY I
AGREE WITH YOU, I’M JUST TELLING YOU WHY THEY DO IT. THE DEFENSE
I GAVE TO THEM, SINCE THE ASSUMPTION OF EVERYONE INVOLVED
IN THE UPPER ECHELON IS THAT THE EXECUTIVES ARE GOLDEN NO MATTER
WHAT, IT’S A GOOD ENOUGH EXCUSE FOR THEM TO SAY OF COURSE YOU
GUYS DON’T UNDERSTAND. I DO UNDERSTAND, IT IS NOT A GOOD ENOUGH EXCUSE TO PAY THE GUYS
WHO BANKRUPTED THE COMPANY EXTRA MONEY.>>MILLIONS OF DOLLARS.

100 Replies to “Judge Denies Bonuses For Executives Who Bankrupted Sports Authority”

  1. Ana Kasparian – 100% outrage, zero business knowledge.  I am glad she claims to do research, because who knows what her no knowledge position would look like if she hadn't done any of that.  People get their news from her.  Sigh.

  2. I agree that they should not get bonuses. These executives were part and parcel of a failed business model, and if they were "employees", they would be given a brief statement of "we are failing and you no longer have a job", and definitely would not get bonuses. SA was a lame company from the incept, and yes, they were horribly overpriced.
    In this country, any entrepreneur, or employee, or student, or anyone else that fails gets to take that on themselves, and "tough shit on you" We have created a culture of mollycoddling the inept "business executives" in this country that has to stop.

  3. they should rule on bonuses after the company is fully liquidated or a percent of the liquidation so they squeeze out as much as possible for the investors and workers.

  4. man, i love dicks…. what? they have great camping gear at affordable prices! i don't know what you were thinking i meant.

  5. Giving those bonuses is essentially stealing from the creditors.  I've never understood why anyone would find the idea of bonuses for executives of bankrupt companies acceptable.

  6. As long as all employees who stayed during the liquidation also got a bonus, there shouldn't be a problem if execs. get a bonus.  But if it's only the exec.'s who get as bonus-that's wrong.

  7. I'll bet those executives each had a copy of 'Art of the Deal'.
    Definitely seems like a Trump style approach to business.

  8. Why not add a clause in the executives' contract stating what amounts to a negative 'bonus'. That is to say if the company goes bankrupt and they don't stay to see it through that then they are liable for a fine of xxx amount.

  9. So here's my question for all the executives who EXPECT a bonus above the fat contract they agreed to when they got hired no matter what kind of job performance they put in and no matter if they are so incapable of doing their jobs they bankrupt the company that hired them….if an hourly wage employee came to you one day and demanded a bonus over and above his regular pay, what would your response be? Let me guess- "What have you done to deserve a bonus?" Imagine your reaction if the response was- "Nothing. I just showed up every day." What if it turned out the employee was so incapable of doing his job he drove customers away and lowered the company profits? What would you do? Give him a bonus regardless of his horrible job performance? Think very carefully about your answer to that.

  10. They should pay that "bonus" money to the 400 store managers who had to console and hold the hands of all the employees who got let-go plus they had to supervise all the store breakdowns.

  11. Why do you need to pay someone millions to sell the shit they should have been selling but now they can sell it for half price

  12. I have seen employees given a retainers/bonuses to stay thru the winding down period, but these are always contractually negotiated and are only paid out when the terms of the contract has been met. So, if there was no contract with these guys they are s.o.l.

  13. News flash Anna – Best Buy only price matches items sold BY Amazon, not items sold via Amazon from third party seller.

  14. Target is not any better – they fund anti-LGBT political candidates and is essentially Walmart with a different color scheme in regards to labor practices.

  15. No way!  Executives aren't the only one's that know how to run the company.  They are the ones that make the wrong decisions, hence that's why Sports Authority is going bankrupt.  There are plenty of talented people in the company that know how it's run.  You don't have to pay them millions to get them to do the job.

  16. These people should have a hard time finding another similar high paying job, after all they bankrupted the company. They should be happy with their salary/pay.

  17. Employees need to band together to do the same thing. Bankrupt retail store closing down and they want you to keep working there? Well band together with everyone and say "bitch pay us a bonus or we're going to find work elsewhere." The reason employees usually can't do this is because people need the money to survive and may not find work soon. But with the internet it would be easy to set up a fund that all employees pay into while they have work that would help pay the living expenses of the employees who can't find work right away afterwards. Chains may not allow unions but this wouldn't be a union. It would be like how Uber isn't a taxi service while still operating like one. Maybe executives will leave and creditors won't make as much money as they could but if the employees leave they won't make shit. Employees have the real power they are just usually to disorganized to use it.

  18. I think that executives should be legally obligated to stay in their positions and oversee the proper disposition of assets when a corporation goes bankrupt without further monetary compensation. I also think that there should be laws in place stating that salaries, pensions, and benefits owed to employees be paid FIRST, rather than the creditors ( and by creditors I mean banks). Too many corporations go bankrupt and leave their employees in the lurch while the executives and the banks get paid.

  19. I live in Denver, the former head quarters for S.A. and the execs were pretty slimy. They got what they deserved.

  20. Maybe somebody should remind these executives that nothing is free, hahaha. That's the usual capitalist rhetoric.

  21. I used to work with sports I always told them they can't justify these prices the only reason I shopped there was because I got 50% off . and was ultimately laid off because the store wasn't making enough money.

  22. Kind of makes me wonder why there aren't people who are hire specifically in the case of bankruptcy. There should be a clause in every executives contract that if they bankrupt the company they can be let go immediately without further compensation. Then a "bankruptcy executive" is brought it to close out and finalize the business closing.

  23. Those executives should have worked for the banking industry. Those guys always get their golden parachutes and Cancun spa visits. Just ask the executives at AIG.

  24. I believe there are outside professionals who are proficient in handling
    the breakdown of companies who have filed bankruptcy.

  25. I think they should be legally required under threat of fines to stay till the end with reduced pay. But this is just a radical idea, only lower wage workers are allowed to be subjected to situations like that.

  26. If America was fair they would have a min and a maximum wage. The max wage should be 100x the lowest paid worker. If you aren't smart enough to figure out how to feed your family on 100x your lower paid worker then you aren't smart enough to run the company either.

  27. So, the guys who were responsible for the failure of this company, are now responsible to oversee the dissolvement of this company? Isn't that strange? Let alone the fact they receive huge bonuses to clear out the mess they've made?

    Can't the judge appoint a bankruptcy specialist, a lawyer, a curator, now they've filed for bankruptcy? They might do it for less than 2.85M.

  28. what a shitty store, overpriced, no selection, 50% of their products have to be ordered…..they should have failed yrs ago

  29. I'm not surprised, my experince with sports authority is really crappy service. I wanted to buy a bow and arrow and no one was there. I saw an employee and waved him over he gestured to wait so I did… I waited and hour and left. I finnaly got a bow at walmart… not much power on it but hey the service was better.  my other time with them not much better and yeah they are over priced.

  30. I don't think we have all the information needed here…for all i know, these could be executives that were hired specifically to oversee the bankruptcy through, in order to make sure they get the most value in liquidating those assets. Furthermore, it is smart to deal with them with bonuses tied to targets to achieve, rather than a salary which they will get regardless of how well they handle the liquidation. If these are new executives, then I do not think they should be measured by the failure of the company if they weren't responsible for that, because remember the board plays a big role in decisions too. I think they should be measured by what value were they able to achieve in the task assigned, which is liquidating the company. Plus there is another point to look at, being an executive overseeing a bankruptcy can be damaging to their careers, so in a way the bonuses are an incentive for them to stay and have this on their resume rather than cut and run before the house burns down….i guess my point is, and i don't know if it applies in this case, that there is a scenario where it makes sense to compensate executives even through a bankruptcy, and there are scenarios where they certainly should be penalised rather than rewarded.

  31. You can use a carrot or a stick to motivate the executives to do their jobs. Instead of giving them a bonus, have them sign a contract at the start that forces them to stay and do their job. If they don't, they can be sued and charged millions for not fulfilling their contracts.

  32. I browsed Sports Authority's liquidation sales. Wasn't impressed. Don't be dissing on Dick's though. I got lots of my camping/hiking gear from them.

  33. ABOUT TIME A JUDGE FINALLY SAID NO! WHEN THESE BASTARDS GET BONUSES WITH BANKRUPTCY USUALLY TAKE IT FROM THE RETIREMENT ACCOUNTS OF THE EMPLOYEES SO THEY GET SCREWED WHILE THE PEOPLE THAT CAUSED THE BANKRUPTCY RAKE IN HUGE AMOUNTS OF CASH!

  34. if you fail a business = no welfare for you
    if you fail to get a useful education, budget wisely and gain skills = poor you we need basic income for you poor baby
    liberal logic

  35. It sucks, but what is the solution?

    "Shouldn't" is one of the least useful words in the English language.

  36. lol video games and mcdonalds bankrupted sports authority. $399 for an at-home bench and weights or $399 for a ps4? The answer is clear.

  37. I LOVE THIS VIDEO. Watching Cenk and Ana have fun together always makes me happy and warm inside. They're like the internet's Howard & Robin, only with much less Trump support. When Cenk makes Ana laugh, that's the best.

  38. What kind of bankruptcy judge is that? Who's responsible for his appointment? Poor executive failures. So unfair.

  39. Just another example of the elitist hubris in corporate America. If you are an executive of a bankrupt company you should be direct liability for it's failure. No shareholder or investor would pay as someone to lose their investment.

    Executives and managers should be Required to remain with the the bankrupt company until it's affairs have been wound up by the bankruptcy court. In the alternative, executives and managers should only be permitted to change their employment by the leave of the bankruptcy court after a minimum period of 180 days post the filing for bankruptcy protection.

  40. No cenk, that's what salary is for. Bonus is for over and above. Paying them a bonus to do their salaried obligation is bullshit

  41. About time!

    I worked for GMAC financial. When they were loosing Millions in 2007 – An exec brought us into a meeting and said, "We need to re-define success, so I can still get proper compensation."

  42. It's different when athletes are involved. Many play on teams that are perpetual losers season after season but these gods still get paid many millions for being losers. Americans have their priorities up their collective asses

  43. Cenk @ 3:27 "the ones who know how to run the company…". Let me correct that for you…the ones who know how to run the company…into the ground! I'm with Ana on this all the way. If the execs can be "rewarded" or "motivated" to stay and see things through, so can the employees. They're all paid a salary to do their jobs and if they want to leave before it's all said and done, let them. There are many consultants out there who will gladly take on a temp salary to see things through and they couldn't do any worse than the losers that ran the company into the ground. Bottom line…I'm glad the judge exercised common sense on this decision and denied the bonuses. That would be like rewarding bad work and adding insult to injury.

  44. I don't think the execs should get the bonuses either. However when these execs were rewarded for failure in their youth, so why not now.. Remember that great liberal idea of how we should give trophies for showing up and never keep score in youth sports? Even if you failed you were rewarded. Every week after a game I would have to tell my kids that was not how the real world works.

  45. Although I was not an executive, I worked for a large tech company that went bankrupt, and I was offered a series of "bonuses" to stay in my job to complete work that needed to be done as the company's assets were divided up and sold. The intent was to give incentive to those with required knowledge and skills to stay when the most obvious instinct is to flee and find another job. Its a win for all parties – even though I still jumped ship at the earliest opportunity ..

  46. I'm against all executive bonuses. Their salaries are high enough and for failing to run a company wtf. Take away their pensions and drain their social security until their debt free if there is any.

  47. Cenk, come off it.  A trustee in bankruptcy would do a better job of winding down the company for well under 4 x $2.85 million.  And if the executives knew how to run the company, why did it go broke??

  48. How about we make the assumption that in order for CEOs to justify their insanely high salaries, they need to stay on till the end. Closing costs are included in their everyday salaries when not in bankruptcy, but closing costs are eventually used at the end. Make it a norm- a part of their sign on contract.

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