Hicks Sports Group Creditors Threatening bankruptcy for the Rangers


It’s hard to tell if this afternoon’s BusinessWeek report represents something truly new or if it’s more of a rehash of what we already know, but for the record:

The Texas Rangers, the Major League Baseball team
controlled by billionaire Thomas Hicks, may be forced into bankruptcy
unless terms of a planned sale of the team are improved or another buyer
is found, according to two people familiar with the matter.

Creditors led by Monarch Alternative Capital may
block Hicks Sports Group LLC, which defaulted on $525 million of debt
last year, from selling the Rangers and try to put the team into
bankruptcy, said the people, who declined to be identified because the
debt talks are private. The creditor group, which includes CIT Group
Inc. and Galatioto Sports Partners LLC, is seeking at least $30 million
more from the team’s sale, one of the people said.

The dynamic is the same that we’ve seen all along: Hicks’ creditors want more money, they’re threatening to force the team into bankruptcy if they don’t get it. Based on the tone of the article and based on the positions the parties have taken in the past, my guess is that the source for this specific report is one of the creditors, trying to ratchet up the pressure. The whole thing works best if you read it in a “and this time we really, really mean it” tone.

Not that it’s an empty or meaningless threat. No one ever gets rich forcing one’s opponent into bankruptcy, but this may one of those situations where it makes some amount of sense. The biggest problem of bankruptcy is the delay it causes in the asset in question getting liquidated, which often diminishes its value. The nut of this dispute, however, is Hicks’ proceeds from a land sale to Greenberg along with the Rangers. Land for mixed-use development — which is what this land, next to the Ballpark, is — is likely about as down in the dumper as it’s ever going to be right now.  Yes, bankruptcy will cause everyone to incur costs in the short term, but if the whole thing gets tied up for months or longer that same piece of land is still going to have to be disposed of in the end, and there’s every reason to believe that it will be worth more later than it is now.

But however that shakes out — and there are a million ways it could shake out — this report can be viewed as a signpost.  A week ago it was reported that Major League Baseball was stepping in to try and persuade the creditors to get the deal done. At the time Greenberg made noises that it would get done next week. The next thing we hear from the creditors is a renewed bankruptcy threat.

What to make of it? Perhaps they are not all that impressed with Mr. Selig’s efforts to play peacemaker. Perhaps they are not all that impressed with Mr. Greenberg’s public statements of inevitability.  Perhaps no one — not Hicks, not Greenberg, not baseball, not anyone — has enough money to wave at Hicks’ creditors to make them think that they’d get all that worse a deal in bankruptcy court. Hard to say.

The only thing that is certain in all of this is that Greenberg will come out with a statement in the next 48 hours in which he tells us, once again, that the deal is almost done. Because that’s what he always does.

(Thanks to Kevin T. for the heads up)

Alex Rodriguez credits Tom Ricketts and Theo Epstein with Cubs’ turnaround

CHICAGO, IL - OCTOBER 13:  Tom Ricketts, owner of the Chicago Cubs, celebrates after the Chicago Cubs defeat the St. Louis Cardinals in game four of the National League Division Series to win the NLDS 3-1 at Wrigley Field on October 13, 2015 in Chicago, Illinois. The Chicago Cubs defeat the St. Louis Cardinals with a score of 6 to 4.  (Photo by David Banks/Getty Images)
Getty Images

It isn’t difficult to see the fingerprints left by Cubs’ president Tom Ricketts and general manager Theo Epstein on the club’s remarkable 2016 season. In a piece for FOXSports.com, former Yankee Alex Rodriguez highlighted the duo’s effectiveness in liberating the Cubs from a five-year losing streak and six-year postseason drought, citing both the unrelenting work ethic and passion that Ricketts and Epstein brought to the club as major factors in their success.

Rodriguez’s first brush with sabermetric savant and all-around baseball wizard Theo Epstein came in 2003, when the then- 27-year-old All-Star was eyeing a deal with the Red Sox. The Major League Baseball Players Association eventually nixed the trade, and the Rangers’ young shortstop was sent to the Yankees shortly thereafter, but not before Rodriguez glimpsed the inner workings of Epstein’s mind.

What I remember best about that time was watching Theo furiously scribbling out the Red Sox lineup for the upcoming season on a room-service napkin. That’s when I saw Theo’s baseball mind at work. I saw he had a passion for the game, a depth of knowledge, and a thirst to be great. Theo’s passion was contagious. We were three 20-somethings convinced we were about to turn baseball upside down together. Though I never got a chance to work with Theo, I knew then that he was going to be a force.

A-Rod also referenced Ricketts’ thorough approach to rebuilding the organization. Ricketts, who purchased the franchise for $875 million in 2009, first made it his mission to transform Wrigley Field into a comfortable and enticing playing environment, then targeted top-tier management to run the show behind the scenes. With Ricketts fully backing Epstein’s transformative approaches — including an overhaul of the Cubs’ farm system, investments in international player development, and a comprehensive understanding and practical application of sabermetric advances — the Cubs’ path to a 97-win season in 2015 seemed a natural consequence of the pair’s hard work.

This year, the attention has been even more intensely focused on the Cubs’ elusive third World Series title. Rodriguez, however, believes that winning a championship is secondary to the strides Ricketts and Epstein have taken with the club.

Together, Ricketts and Epstein have built one of the greatest franchises in baseball and transformed 1060 W. Addison St. It’s a task that no one could quite get right for a hundred years. While four more wins would put a giant exclamation point on five years of focused work and determination, I won’t worry if this team doesn’t win the World Series in the next nine days.

Mets expected to pick up 2017 option for Jose Reyes

NEW YORK, NEW YORK - SEPTEMBER 22:  Jose Reyes #7 of the New York Mets celebrates after hitting a game tying two-run home run in the bottom of the ninth inning against the Philadelphia Phillies Citi Field on September 22, 2016 in the Flushing neighborhood of the Queens borough of New York City.  (Photo by Mike Stobe/Getty Images)
Mike Stobe/Getty Images

Kristie Ackert of the New York Daily News reports that the Mets are expected to pick up the 2017 option for Reyes, but they haven’t done it yet. The option will be worth the major league minimum salary ($507,500), as the Rockies will continue to pay down the remainder of Reyes’ $41 million remaining on his contract.

The Mets signed Reyes after the Rockies released him in June. He had a .659 OPS in Colorado but improved to a .769 OPS in 279 plate appearances with the Mets, mostly playing third base in place of the injured David Wright. Bringing Reyes back next season will provide them more insurance at the hot corner.

Reyes, 33, served a 51-game suspension due to an offseason domestic violence incident while on vacation in Hawaii with his wife. As a result, he didn’t make his season debut until July 5, having spent some additional time in the minor leagues to get into game shape.