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May 10, 2010

Rangers sale: The saga continues

The Rangers are off today and have a big series this week against Oakland. It's a bigger week, though, in regards to the ongoing sale of the club. It seems likely that something will happen this week, if for no other reason than all 30 club owners will meet in New York for the quarterly owners meetings.

MLB could seize control of the club, which has been speculated for three weeks now, especially in light of the sources who have told a few national outlets that Tom Hicks' lenders have rejected the proposed sale. MLB isn't commenting, nor is Rangers Baseball Express (Chuck Greenberg and Nolan Ryan). Hicks hasn't been heard from since MLB told him to be quiet April 22. Such silence from involved parties on a sticky subject usually is an indicator that something is about to happen. Commissioner Bud Selig will have something to say this week at the meetings, to the owners and publically.

Some of the speculation so far just doesn't make any sense. Does anyone really believe that Dennis Gilbert or Jim Crane will be allowed to bid on the team again and become owner, especially since it would likely mean Ryan's departure as team president? And how about this quote in the Sports Business Journal if MLB is to take control of the team?:

“Bud can forget any lender, which includes any hedge fund or anyone, [lending] a single nickel or dime into baseball again,” said Joe Kosich, who owns advisory firm Dornoch Capital Advisors and formerly ran sports lending at Wachovia. “In my opinion, it’s cutting off his nose to spite his face. … It is completely wrong.”

I'm sure Kosich's close, personal friend Bud is quaking in his wingtips.

Here's some home-grown speculation: Hicks is fed up with being a Metroplex punching bag and is beaten down by the 40 lenders who hold the Hicks Sports Group debt. He also realizes this mess will continue after the Rangers sale is completed because the lenders can still get their hands on the Stars. So, he steps in and makes some sacrifices -- either monetarily or the small stake he would have in the Rangers -- to starting putting things behind him.

I'd bet on that before I'd bet on anyone besides Greenberg-Ryan getting the team. Or any financial institution not lending ever again to MLB. But something could give this week at the owners meetings.

-- Jeff Wilson

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Comments

Let 'em have the Stars, let 'em have that thing in England or wherever it is, just get this team in Greenburg's hands. I'm wondering if some owners will hold out their approval until the deadline so Greenburg can't pony up for a center fielder and a bullpen pitcher before the deadline so as to keep the Rangers without a major-league center fielder. Just wondering.

My thoughts are I think Hicks is still trying to believe there is a higher bid than what he has from Nolan and Grenberg.
I believe MLB does need to step in and just take the team from Hicks and get him completely out of the picture, so serious talks can resume about selling the club.

If only Hicks had the best interests of the TEAM in mind and how they could contend for a pennant...Chuck Greenberg DOES and WILL every step of the way. MLB knows that, Selig, knows it. But "Moneyball" is baseball too, and that's all Hicks gathers into his peabrain, and it shackles the Rangers. Let's get it done and heat things up this summer. Baseball lives in Texas!

Tom Hicks could screw up a rock fight, or a one car funeral....

The 40 lenders hold $525 million in Hicks Sports Group debt So why are they only $300 million in proceeds from the sale. HSG is offering only $270 million. I don’t understand Why are they not getting all of their money back and Hicks get nothing? If I default on a loan the bank will get all of their money back from the sale of the property.

Buyers have to pay what they think the team is worth, not what lenders and Hicks want. Hicks and his buddies may have gone a little overboard on some of the frills around The Ballpark and now want Greenburg to pay for it.

Joe, if you default on a loan the bank gets the property back and can sell it only at market value and not necessarily for the full amount they loaned you for it.

Shooter,
you are right but in this case Hicks sold the franchise for $570 mil. the lenders should get the $525 they are owed.

That thing in England is worth twice as much as the rangers and it would be more if they could get the city of Liverpool to build them a new stadium, and steal land from their neighbors. Without the ballpark the rangers arnt worth 100 mil.

Bud should be quaking in his boots as the credit pipe runs dry, so do valuations in baseball. If you fail to recognize this, you don't understand how things work financially in any major sports league. It's a fact. Hicks shouldn't get a nickel out of the HSG credit and that's why they're in bankruptcy court. Hicks should forget about ever getting financing for anything....as it should be.

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