Rangers' debt holder warns Selig not to seize the team


Monarch Alternative Capital is the fly in the ointment, the monkey in the wrench, the pain in the assets of the Texas Rangers sale.  They’re the lead debt holder, and the ones who appear to be calling the creditors’ shots in the seemingly interminable brinkmanship that has characterized the team’s sale.

Today Richard Sandomir of the New York Times reports that they’re not taking Bud Selig’s threats to seize the Rangers, cancel the debt and do the deal lightly, sending an email to him in which consequences most dire are predicted, including the team’s bankruptcy or “costly, distracting and messy”

Which is really the only response that one can expect given Bud’s threats. There are disagreements about whether Monarch actually has the stones to go through with it all, but if you’re in the business of buying debt and a major debtor is basically saying he’s going to ignore your claims, you pretty much have to litigate if you want to be taken seriously with your other customers, don’t you? It’s like the unwritten rules for banks. If one high-profile debtor is allowed to walk all over you, you’re toast. Ask Tony La Russa. I’m sure he can tell you all about it.

That aside, I think the most interesting thing about it is the last line of Monarch’s letter Sandomir quotes, in which they warn of a negative impact to team values if Selig carries out his threat, “as funding will become more costly and difficult to obtain as lenders
lose faith in the contractual security of their loans.”

This is what I was talking about the other day: the lenders may not have all the leverage in the world in the context of this deal, but if they do end up getting burned, you have to figure that the terms of loans to baseball teams will be much more arduous going forward, and not just from entities like Monarch. Lenders are in the business of valuing risk. If the Rangers are able to simply walk away from current obligations like this, banks will consider baseball teams to be bigger risks going forward. And not just because they’re worried that the team will default, but because they’re worried that the debt they hold will be harder to sell on the open market to secondary holders . . . like Monarch Alternative Captial.

In other words, there are greater stakes at issue here than the simple selling of the Texas Rangers, and I’d be surprised if Selig and his able business associates are not well aware of them privately, even if their public rhetoric is errs on the side of the cavalier.

Marlins have begun extension talks with Dee Gordon

Dee Gordon
AP Photo/Alex Brandon

Barry Jackson of the Miami Herald wrote three weeks ago that the Marlins were probably going to explore an extension this winter with second baseman Dee Gordon. And it sounds like those talks are underway.

Via beat writer Joe Frisaro of MLB.com:

As a guest on MLB Network’s “Hot Stove” show Wednesday morning, Gordon confirmed his camp has been in talks with the Marlins regarding a multiyear deal. A source told MLB.com that the discussions are preliminary and have just recently started.

“My agent is doing the talking,” Gordon said on the show. “They’re just keeping me in the loop. I think it’s going pretty well right now. We’ll see how that goes. I’m just playing the waiting game. We’re going to do the right thing.”

The 27-year-old carries three more seasons of salary arbitration, so there’s no real rush to get something done before next spring. Gordon carries quite a bit of leverage after posting a career-best .333/.359/.418 slash line in 145 games this past season for the Fish. He led all major leaguers in hits (205) and stolen bases (58).

Braves sign Bud Norris to one-year contract

Bud Norris

Bud Norris has found a home for his attempt at a bounceback season, signing a one-year deal with the Braves. Jon Heyman of CBSSports.com says it’s worth $2.5 million, which is a huge cut from his $8.8 million salary this year.

Norris had established himself as a solid mid-rotation starter from 2009-2014, but had a brutal 2015 season split between the Orioles and Padres with a 6.72 ERA in 83 innings and a late-season move to the bullpen.

In announcing the signing the Braves referred to Norris as a starting pitcher, so joining the rotation for a rebuilding team gives him a chance to get his career back on track with an eye on hitting the open market as a free agent again next offseason. And if he fares well, the Braves could use him to add a prospect or two at the trade deadline.

The Cubs acquire Rex Brothers from the Rockies

Rex Brothers Rockies

The number of people who, if you held a gun to their head, would say that “Rex Brothers” was a game show host and/or local TV news personality from the late 1970s or early 80s is not insignificant. But if you’re a Rockies fan or if spend all day thinking about baseball you know that he’s a reliever who has played in Colorado for the past five years. Now you know him as a reliever for the Cubs:

Brothers — a former Best Shape of His Life All-Star — was pretty good until he hit a brick wall in 2014 and spent most of 2015 in Triple-A. He had something of a bounceback after being called up when rosters expanded in September, but that’s not the sort of thing to excite anyone. He could be useful for the Cubs or just spring training cannon fodder and organizational depth.

Cabrera just turned 18 a couple of weeks ago and pitched a grand total of 14 games in the Dominican Summer League. He’s young and was a $250,000 signee from the Dominican as a 16-year-old so, by definition, he’s a project. Worth giving up Rex Brothers for him if you’re the Rockies, worth risking for some depth in the pen if you’re the Cubs.

Diamondbacks hire Dave Magadan as hitting coach

Dave Magadan Rangers
Leave a comment

Steve Gilbert of MLB.com reports that the Diamondbacks’ new hitting coach is Dave Magadan, who “parted ways” with the Rangers last month after three years filling the same role in Texas.

Magadan also previously was the Red Sox’s hitting coach and his teams have generally done pretty well, including the Rangers scoring the third-most runs in the league this year.

He’ll have plenty of talent to work with in Arizona, as the Diamondbacks scored the second-most runs in the league led by Paul Goldschmidt, A.J. Pollock, and David Peralta. Turner Ward, who had been Arizona’s hitting coach, chose to leave the team two weeks ago.