The Rangers sale is a "trainwreck"

Leave a comment

That’s the viewpoint of someone associated with the group of creditors meeting with prospective Rangers’ owners Chuck Greenberg and Nolan Ryan in New York tomorrow in an attempt to iron out their differences regarding the team’s sale. It’s an ominous sign with respect to something that everyone is assuming is a done deal.

As you’ll recall, the creditors are led by a hedge fund called Monarch Alternative Capital, which bought up a bunch of Hicks Sports’ Group’s debt when it nearly defaulted on its obligations last summer.  The creditors have to sign off on the tentative agreement between Hicks and Greenberg/Ryan, and from the sound of it, they don’t have a huge incentive to do so.  According to the article:

The key issues, the sources said, are that while the sale has an
announced price of $570M, there is only $390M of cash changing hands,
with the difference assumed liabilities. And of that the banks would
only get $250M, sources said. Before they get paid, according to the
deal, Hicks would be paid for the real estate around the ballpark, MLB
must be paid for loans it forwarded the team, and Rangers investment
bankers, Merrill Lynch and Raine get paid too.

That’s right: Tom Hicks has helped broker a deal in which he personally gets paid before the people from whom his spendthrift ownership group had to borrow in order to make ends meet last year. And of course, Hicks himself is part of the new ownership group too. The result: an angry group of creditors is worried that they’re going to only get pennies on the dollar — “We will be better off in bankruptcy court,” a source says — and may very well tell Greenberg, Ryan and Hicks to go back to the drawing board. If that happens, you have to figure that Jim Crane and Dennis Gilbert, who were reported to have better bids than Greenberg — would come back into play.

In December I reported that there were people around Major League Baseball who were worried about this deal coming together.  Those worries were brushed off at the time.  Based on what we’re hearing today, I have this feeling that they’re back.

Nationals place Anthony Rendon on disabled list

Rob Carr/Getty Images
Leave a comment

The Nationals announced that third baseman Anthony Rendon has been placed on the 10-day disabled list, retroactive to April 19, with a toe contusion. Pitcher Austin Adams was recalled from Triple-A Syracuse.

Rendon fouled a pitch off of his foot on April 13 in a game against the Rockies. The Nationals were hoping he wouldn’t need to go on the disabled list, which is why he was day-to-day for a week and a half. Unfortunately, Rendon’s stint on the DL can only be backdated to Thursday, so he won’t be eligible to return until this weekend.

Rendon, 27, is hitting .286/.355/.411 with a home run and four RBI in 62 plate appearances so far this season. Wilmer Difo has been handling third base while Rendon has been out and figures to continue doing so for the next week or so.