The resolution of Allegheny Health System's bankruptcy
proceedings has "cut short a 10-year corporate sponsorship
deal that would have generated" about $20M for the Eagles,
according to John George of the PHILADELPHIA BUSINESS
JOURNAL. Allegheny spokesperson Tom Chakurda said that the
health system, which sold its eight Southeastern PA
hospitals to Tenet Healthcare Corp., has informed the Eagles
of its "intent to reject the continuation" of the
sponsorship, which was signed prior to the '97-98 season and
was supposed to continue through the 2006-07 season. The
team is among the 30,000 "unsecured creditors" who will
split the proceeds from the Tenet sale, but most creditors
will "only receive a fraction" of what they are owed since
Allegheny cited $1.3B in debt in its bankruptcy filing.
Tenet reps "did not rule out the possibility of trying to
forge a more limited partnership" with the Eagles in the
future. Under the deal, Allegheny agreed to pay the Eagles
$1.36M in '97, with an 8% increase each year of the
contract. In return, Allegheny would have received
commercial spots, ad placements and "presenting partner"
designations (PHILADELPHIA BUSINESS JOURNAL, 11/16).
