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)

Shelby Miller will undergo Tommy John surgery

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Last we heard from Shelby Miller, the Diamondbacks’ right-hander was contemplating Tommy John surgery for a partial UCL tear in his right elbow. Now, he appears to have decided to go through with the procedure.

Miller decided to skip Tommy John alternatives like plasma-rich platelet injections or stem cell treatment, which have been used to varying degrees of success by other major league pitchers with similar injuries. The surgery will set him back an estimated 12-18 months, FanRag Sports’ Tommy Stokke reports, which puts Miller’s estimated return date somewhere in 2018 if all goes well.

The 26-year-old starter was off to a rocky start this season, posting a 2-2 record and 4.09 ERA through 22 innings and striking out just 20 of 99 batters faced. This was his sophomore campaign in Arizona after muddling through the 2016 season with a 3-12 record, 6.15 ERA and 0.5 fWAR over 101 innings with the club.

Steven Souza Jr. exits game after injuring his hand on a hit by pitch

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Rays’ right fielder Steven Souza Jr. left Saturday’s game after getting hit on the left hand by a pitch from Blue Jays’ right-hander Joe Biagini in the seventh inning. The pitch appeared to hit the top of Souza Jr.’s hand, causing the outfielder to crumple at the plate and requiring assistance from assistant athletic trainer Paul Harker as he exited the field. Postgame reports from the Tampa Bay Times’ Marc Topkin revealed that Souza Jr. sustained a left hand contusion and is scheduled to undergo further evaluation on Sunday.

While the diagnosis isn’t as bad as it could be, it’s still a tough break for the right fielder, who missed 40 days of the 2015 season after sustaining a fracture in his left hand on another hit by pitch. The team has yet to announce any concrete timetable for Souza Jr.’s return, though manager Kevin Cash indicated that they’ll be taking things day to day for the time being.

Souza Jr. is batting .326/.398/.543 with four home runs and 17 RBI through 104 PA in 2017. He went 1-for-2 with a base hit and a walk prior to his departure during Saturday’s 4-1 loss.