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)

Jorge Posada highlights 16 one-and-done players on Hall of Fame ballot

NEW YORK, NY - JANUARY 24:  Jorge Posada addresses the media during a press conference to announces his retirement from the New York Yankees at Yankee Stadium on January 24, 2012 in the Bronx borough of  New York City.  (Photo by Mike Stobe/Getty Images)
Mike Stobe/Getty Images
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Former Yankees catcher Jorge Posada received only 17 total votes (3.8 percent) on the 2017 Hall of Fame ballot. Unfortunately, he is one of 16 players who fell short of the five percent vote threshold and is no longer eligible on the ballot. The other players are Magglio Ordonez (three votes, 0.7 percent), Edgar Renteria (two, 0.5 percent), Jason Varitek (two, 0.5 percent), Tim Wakefield (one, 0.2 percent), Casey Blake (zero), Pat Burrell (zero), Orlando Cabrera (zero), Mike Cameron (zero), J.D. Drew (zero), Carlos Guillen (zero), Derrek Lee (zero), Melvin Mora (zero), Arthur Rhodes (zero), Freddy Sanchez (zero), and Matt Stairs (zero).

Posada, 45, helped the Yankees win four World Series championships from 1998-2000 as well as 2009. He made the American League All-Star team five times, won five Silver Sluggers, and had a top-three AL MVP Award finish. Posada also hit 20 or more homers in eight seasons, finished with a career adjusted OPS (a.k.a. OPS+) of 121, and accrued 42.7 Wins Above Replacement in his 17-year career according to Baseball Reference.

While Posada’s OPS+ and WAR are lacking compared to other Hall of Famers — he was 18th of 34 eligible players in JAWS, Jay Jaffe’s WAR-based Hall of Fame metric — catchers simply have not put up the same kind of numbers that players at other positions have. That’s likely because catching is such a physically demanding position and often results in injuries and shortened careers. It is, perhaps, not an adjustment voters have thought to make when considering Posada’s eligibility.

Furthermore, Posada’s quick ouster is somewhat due to the crowded ballot. Most voters had a hard time figuring out which 10 players to vote for. Had Posada been on the ballot in a different era, writers likely would have found it easier to justify voting for him.

Posada joins Kenny Lofton in the “unjustly one-and-done” group.

Tim Raines, Jeff Bagwell, Ivan Rodriguez Elected to the Hall of Fame

1990:  Outfielder Tim Raines of the Montreal Expos in action. Mandatory Credit: Otto Greule  /Allsport
Getty Images
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The 2017 induction class of the Baseball Hall of Fame was announced Wednesday evening and we have three inductees: Tim Raines, Jeff Bagwell and Ivan Rodriguez. Raines and Bagwell had to wait a good long while to get the call. Rodriguez is in on his first year of eligibility. But nowhere on the plaque will it say how long it took. All that matters now is that three of the greatest players of their respective generations finally have a place in Cooperstown.

Players must be named on 75% of the Baseball Writers Association of America’s ballots to get in. Raines was named on 86% of the ballots. Bagwell was named on 86.2%. Rodriguez was named on 76%. Non-inductees with significant vote totals include Trevor Hoffman at 74% and Vladimir Guerrero at  71.7%. The full results can be seen here.

Others not making the cut but still alive for next year, with vote totals in parenthesis: Edgar Martinez (58.6); Roger Clemens (54.1); Barry Bonds (53.8); Mike Mussina (51.8); Curt Schilling (45.0); Manny Ramirez (23.8); Larry Walker (21.9); Fred McGriff (21.7); Jeff Kent (16.7); Gary Sheffield (13.3%); Billy Wagner (10.2); and Sammy Sosa (8.6). Making his final appearance on the ballot was Lee Smith, who received 34.2% of the vote in his last year of eligibility. He will now be the business of the Veterans Committee.

Players who fell off the ballot due to not having the requisite 5% to stay on: Jorge Posada; Magglio Ordoñez; Edgar Renteria; Jason Varitek; Tim Wakefield; Casey Blake; Pat Burrell; Orlando Cabrera; Mike Cameron; J.D. Drew; Carlos Guillen; Derrek Lee; Melvin Mora; Arthur Rhodes; Freddy Sanchez; and Matt Stairs

We’ll have continued updates on today’s Hall of Fame vote throughout the evening and in the coming days. In the meantime, congratulations to this year’s inductees, Tim Raines, Jeff Bagwell and Ivan Rodriguez!