Hicks Sports Group Creditors Threatening bankruptcy for the Rangers

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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)

Baseball Hall revamps veterans’ committees

Cooperstown
Associated Press
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COOPERSTOWN, N.Y. (AP) Baseball’s Hall of Fame has again revamped its veterans’ committees, attempting to increase consideration for more contemporary players, managers, umpires and executives.

Under the change announced Saturday by the Hall’s board of directors, there will be separate committees for Today’s Game (1988-2016), Modern Baseball (1970-87), Golden Days (1950-69) and Early Baseball (1871-1949). Today’s Game and Modern Baseball will vote twice every five years, Golden Days once every five years and Early Baseball once every 10 years.

“There are twice as many players in the Hall of Fame who debuted before 1950 as compared to afterward, and yet there are nearly double the eligible candidates after 1950 than prior,” Hall chair Jane Forbes Clark said in a statement. “Those who served the game long ago and have been evaluated many times on past ballots will now be reviewed less frequently.”

Today’s Game will vote in 2016, `18, `21, and `23, and Modern Baseball in 2017, `19, `21 and `23. Golden Days will vote in 2020 and `25, and Early Baseball in 2020 and `30. The Hall’s Historical Overview Committee will decide which committee will consider those who span eras, based on the time or place of their most indelible impression.

Since 2010, the Hall had established three veterans committees: Pre-Integration Era (1871-1946), Golden Era (1947-72) and Expansion Era (1973-2016). No one was elected by the Pre-Integration Era committee in December.

In addition, the Hall eliminated the one-year waiting period between a player’s last appearance on the Baseball Writers’ Association of America ballot and his veterans committee debut for consideration. The Hall also said active executives 70 or older may be given consideration, up from 65.

Committees will remain at 16 people, with a vote of at least 75 percent needed for election. The ballot size will be 10 for each committee; it had been 12 for Expansion Era and 10 for the others.

The BBWAA votes on players who have been retired for at least five years and no more than 15. Ken Griffey Jr. and Mike Piazza are to be inducted Sunday.

The Hall also changed some of the rules for the Ford C. Frick Award, presented annually to a broadcaster for “major contributions to baseball.” The committee making the annual decision will consider a three-year cycle of Current Major League Markets (team-specific announcers) for the 2017 award, National Voices for 2018 and Broadcasting Beginnings (early team voices and pioneers) for 2019.

Since 2013, the Frick’s three-year cycle had been High Tide Era (mid-1980s to present), Living Room Era (mid-1950s to mid-1980) and Broadcasting Dawn Era (before mid-1950s).

The criteria will be “commitment to excellence, quality of broadcasting abilities, reverence within the game, popularity with fans, and recognition by peers” instead of “longevity; continuity with a club; honors, including national assignments such as the World Series and All-Star Games; and popularity with fans.”

The Frick ballot size will be reduced from 10 to eight, and the three ballot spots previously determined by fan voting will be decided by historians.

Ozzie Smith, inducted to the Hall in 2002, was voted to the Hall’s board of directors.

Red Sox analyst Remy struck by monitor as wind causes havoc

ramirez
AP Photo
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BOSTON — Red Sox TV analyst Jerry Remy was hit in the head by a falling TV monitor as swirling winds caused havoc during the first inning at Fenway Park.

Remy was sent home from Boston’s game Saturday night against the Minnesota Twins but is expected back Sunday. Former player Steve Lyons, also an analyst during some games, came in for Remy.

The strong winds made for an interesting first.

Minnesota’s Robbie Grossman hit a fly that appeared headed for center, but a gust blew it to right, sending right fielder Michael Martinez twisting as the ball fell for a triple.

There were a handful of stoppages as dirt and litter swirled around the field. Batters stepped out to wipe their eyes and Red Sox first baseman Hanley Ramirez headed to the dugout to have a trainer help him clear his left eye.