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)

Mariners interested in free agent outfielder Nori Aoki

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New Mariners general manager Jerry Dipoto has kept pretty busy in his short time on the job and Bob Dutton of the Tacoma News Tribune reports that free agent outfielder Nori Aoki could be his next target. The club recently pursued a trade for Marlins outfielder Marcell Ozuna, but the asking price has them looking at alternatives.

Aoki, who turns 34 in January, has hit .287 with a .353 on-base percentage over four seasons since coming over from Japan. He was having a fine season with the Giants this year prior to being shut down in September with lingering concussion symptoms.

The Giants decided against picking up Aoki’s $5.5 million club option for 2016 earlier this month, but he should still do pretty well for himself this winter assuming he’s feeling good.

Report: Johnny Cueto is believed to be looking for a $140-160 million deal

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It was reported Sunday that free agent right-hander Johnny Cueto had turned down a six-year, $120 million contract from the Diamondbacks. He’s hoping to land a bigger deal this winter and ESPN’s Jerry Crasnick has heard some chatter about what he’s looking for.

Jordan Zimmermann finalized a five-year, $110 million contract with the Tigers today, which works out to $22 million per season. Arizona’s offer to Cueto checked in at $20 million per season. A six-year offer to Cueto at the same AAV (average annual value) as Zimmermann would put him at $132 million, which is still a little shy of the figure stated by Crasnick. Of course, Cueto owns a 2.71 ERA (145 ERA+) over the last five seasons compared to a 3.14 ERA (123 ERA+) by Zimmermann during that same timespan, so there’s a case to be made that he should get more. Still, he’s the clear No. 3 starter on the market behind David Price and Zack Greinke.

CBS Sports’ Jon Heyman reports that the Dodgers, Giants, Red Sox, and Cubs are among the other teams who have interest in Cueto. One variable in his favor is that he is not attached to draft pick compensation, as he was traded from the Reds to the Royals during the 2015 season.

Report: Around 20 teams have contacted the Braves about Shelby Miller

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The rebuilding Braves have already been active on the trade market and they might not be done, as CBS Sports’ Jon Heyman reports that right-hander Shelby Miller has been a very popular name. In fact, around 20 teams have checked in.

Nothing is considered close and the Braves have set a very high asking price, mostly centered around offense. They asked for right-hander Luis Severino in talks with the Yankees and would expect outfielder Marcell Ozuna among other pieces from the Marlins. The Diamondbacks and Giants are among the other interested clubs.

Miller is under team control through 2018, so there’s not necessarily a sense of urgency to move him, but anything is possible with the way the Braves are doing things right now. The 25-year-old is coming off a year where he went 6-17, but that was about really rotten luck more than anything else, as he had a fine 3.02 ERA and 171/73 K/BB ratio over 205 1/3 innings. The Braves gave him the worst run support of any starter in the majors.

Mets expected to tender a contract to Jenrry Mejia

NEW YORK, NY - JULY 12:  Jenrry Mejia #58 of the New York Mets reacts as he walks off the field after getting the final out of the seventh inning against the Arizona Diamondbacks at Citi Field on July 12, 2015 in the Flushing neighborhood of the Queens borough of New York City.  (Photo by Jim McIsaac/Getty Images)
Photo by Jim McIsaac/Getty Images

Jenrry Mejia appeared in just seven games this past season due to a pair of suspensions for performance-enhancing drugs, but Adam Rubin of ESPN New York reports that the Mets are expected to tender him a contract for 2016.

While the Mets were vocal about their disappointment in Mejia’s actions, it makes sense to keep him around as an option. Had he played a full season in 2015, he would have earned $2.595 million. He’s arbitration-eligible for the second time this winter and figures to receive a contract similar to his 2015 figure, but he’ll only be paid for the games he plays. He still has 100 games to serve on his second PED suspension, which means that he’ll only be paid for 62 games in 2016. This likely puts his salary closer to $1 million, which is a small price to pay for someone who could prove useful during the second half and beyond. He also won’t count toward the team’s 40-man roster until he’s active.

Mejia, who turned 26 in October, owns a 3.68 ERA in the majors and saved 28 games for the Mets in 2014. He’s currently pitching as a starter in the Dominican Winter League.