Hicks Sports Group Creditors Threatening bankruptcy for the Rangers

8 Comments

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)

Colin Rea loses no-hit bid in the seventh against the Mets

San Diego Padres starting pitcher Colin Rea works against a Pittsburgh Pirates batter during the first inning of a baseball game Tuesday, April 19, 2016, in San Diego. (AP Photo/Gregory Bull)
AP Photo/Gregory Bull
2 Comments

Update (12:01 AM EDT): And it’s over. Yoenis Cespedes drove a ground ball single to right field with two outs in the seventh inning to end Rea’s no-hit bid.

*

Padres starter Colin Rea has tamed the hot-hitting Mets lineup so far this Thursday night. The right-hander has walked only one, the lone batter above the minimum he has faced. Rea has also struck out three while accumulating 76 pitches.

The Padres’ offense provided Rea with five runs of support, scoring once in each of the first, second, and third, as well as twice in the sixth. Wil Myers smacked a solo homer off of Jacob deGrom in the first inning. Rea helped himself with an RBI single in the second, Alexei Ramirez brought in a run with a double in the third, Derek Norris drove a solo homer in the sixth, and Jon Jay shortly thereafter hit an RBI double.

The Mets entered play Thursday tied for the National League lead in home runs hit as a team with 40. Rea, meanwhile, came into Thursday’s action with a 4.61 ERA and a 22/13 K/BB ratio in 27 1/3 innings spanning five starts and one relief appearance.

If Rea is able to complete the job, he would become the first pitcher in Padres history to throw a no-hitter. Jake Arrieta threw the first no-hitter of the 2016 season on April 21 against the Reds.

We’ll keep you updated as Rea attempts to navigate through the final three innings.

Jason Heyward hopes to return to Cubs’ lineup on Friday

Chicago Cubs' Jason Heyward hits a double to drive in Dexter Fowler off Cincinnati Reds relief pitcher J.J. Hoover during the ninth inning of a baseball game, Friday, April 22, 2016, in Cincinnati. The Cubs won 8-1. (AP Photo/John Minchillo)
AP Photo/John Minchillo
2 Comments

Cubs outfielder Jason Heyward hasn’t played since Sunday due to a sore right wrist, but he’s hoping to be included in his team’s lineup on Friday, MLB.com’s Carrie Muskat reports. Matt Szucur, Ben Zobrist, and Kris Bryant have handled right field while Heyward has been out.

Heyward, 26, has gotten off to a disappointing start, as he’s batting .211/.317/.256 with only four doubles, no home runs, and 13 RBI in 104 plate appearances. He signed an eight-year, $184 million contract with the Cubs back in December.

Heyward said he hurt his wrist putting emphasis on it during hitting drills. He said, “I was doing some work off the tee and doing a drill with a donut on the bat, swinging, trying to stay through the middle, and I put more emphasis on [his wrist] and strained it from that.”

Cardinals plan to get creative to keep Aledmys Diaz in the lineup

St. Louis Cardinals' Jedd Gyorko high-fives with Matt Carpenter as they and Aledmys Diaz, center, leave the field following the Cardinals' 11-2 victory over the San Diego Padres in a baseball game Saturday, April 23, 2016, in San Diego. (AP Photo/Lenny Ignelzi)
AP Photo/Lenny Ignelzi
3 Comments

Cardinals shortstop Jhonny Peralta is expected to return from the disabled list in early June, which means current shortstop Aledmys Diaz would return to the bench. There’s only one problem: Diaz has been one of the best hitters in baseball. The 25-year-old owns a sparkling .381/.422/.679 triple-slash line with 14 extra-base hits (including five homers) in 90 plate appearances.

The Cardinals plan to get creative to keep Diaz’s bat in the lineup. Per Jon Morosi of FOX Sports, the club is considering using Peralta at first and third base. Peralta, 33, last played third base in 2010 with the Indians and Tigers. He has logged only three games and nine total defensive innings at first base in his major league career.

Diaz isn’t about to displace Peralta. Last season, Peralta was one of the best-hitting shortstops, finishing with a .275/.334/.411 triple-slash line with 17 home runs and 41 RBI in 640 plate appearances. He was even more productive in 2014, his first year with the Cardinals.

Chris Bassitt will undergo Tommy John surgery on Friday

Oakland Athletics pitcher Chris Bassitt sits in the dugout after being relieved against the Detroit Tigers in the fourth inning of a baseball game in Detroit, Thursday, April 28, 2016. (AP Photo/Paul Sancya)
AP Photo/Paul Sancya
Leave a comment

Athletics pitcher Chris Bassitt will undergo season-ending Tommy John surgery on Friday, MLB.com’s Jane Lee reports. He was diagnosed with a partially torn ulnar collateral ligament over the weekend, so this news doesn’t come as much of a surprise.

Bassitt, 27, is certainly out for the remainder of the 2016 season and will likely miss a sizable portion of the 2017 season as well. The right-hander made five starts for the A’s to begin the season, but put up an ugly 6.11 ERA with a 23/14 K/BB ratio in 28 innings.

Jesse Hahn took Bassitt’s spot in the Athletics’ starting rotation. Hahn is expected to start next on Saturday versus the Orioles.