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.

Cavaliers will move ring ceremony to avoid conflict with World Series start

CLEVELAND, OH - JULY 11: A general exterior image of the Quicken Loans arena which is next door to Progressive Field where the Chicago White Sox will take on the Cleveland Indians on July 11, 2014 in Cleveland, Ohio. (Photo by Jason Miller/Getty Images)
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In a show of good sportsmanship, the Cleveland Cavaliers have moved their championship ring ceremony start time back to 7 PM EDT to avoid conflicting with the start of the World Series opener on Tuesday. The Indians are set to host Game 1 at Progressive Field on October 25, while the Cavs will open the 2016-17 NBA season against the New York Knicks at the nearby Quicken Loans Arena, preceded by a ceremony recognizing their first franchise title.

In the event that the Indians clinch a World Series title, it’ll be the first time Cleveland has seen two championships in the same calendar year since 1948, when the Indians’ last Series title came on the back of the Cleveland Browns’ All-American Football Conference championship against the Buffalo Bills. The same was true for the Dodgers in 1988, when their World Series win against the Athletics coincided with the Los Angeles Lakers’ 11th championship, while Chicago has yet to see a multi-title year among their NBA, NFL, and MLB franchises.

Regardless of the Series’ outcome, Cleveland fans will get the chance to revel in one long-awaited championship win on Tuesday before watching the beginning of a nail-biting conclusion to another long-awaited playoff run. The Cavaliers are scheduled for 7 PM EDT on October 25, while the Indians will take the field at 8 PM EDT.

Indians could benefit from long rest before the World Series

MINNEAPOLIS, MN - SEPTEMBER 09: Danny Salazar #31 of the Cleveland Indians delivers a pitch against the Minnesota Twins during the first inning of the game on September 9, 2016 at Target Field in Minneapolis, Minnesota. (Photo by Hannah Foslien/Getty Images)
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If any team can turn a six-day rest period into an advantage, it’s the Indians. The club polished off their pennant race with another injured starter and an overtaxed bullpen, as Trevor Bauer exited in Game 3 of the ALCS with a laceration on his right pinky finger, leaving the bullpen to shoulder 16 innings through the last three games of the series. On Friday, MLB.com’s Jordan Bastian reported that injured starter Danny Salazar could rejoin the rotation in the World Series, though he’ll need at least one more simulated game before Terry Francona determines whether or not he’s fit to return for the team’s last postseason push.

Bauer, who has been under the close watch of hand specialist Dr. Thomas Graham, told the press that he feels confident that he’ll be ready for a World Series start when the final showdown commences on Tuesday. Keeping the wound bandaged is not an option during games, and Bauer said that Dr. Graham decided against additional stitches to keep the laceration from re-opening. Instead, they’re banking on extra days of rest to heal the cut naturally. Should Francona pencil the right-hander into the lineup for Game 3 or 4, he’ll have had 10-11 days to rest his finger between starts — just a hair under the seven games Bauer said he was prepared to pitch.

Salazar, too, has been preparing for a World Series showdown. He’s scheduled to pitch three innings of a simulated game this weekend, and if it goes well, it could land him a spot in the starting rotation alongside Bauer, Corey Kluber, Josh Tomlin, and newcomer Ryan Merritt. Salazar has been sidelined since September 9 with a right forearm strain, and even after undergoing a rigorous throwing program over the last several weeks, any kind of comeback is expected to be curbed by a strict innings limit. Francona has been understandably tight-lipped about his World Series roster, but he hasn’t yet nixed the idea of utilizing Salazar out of the rotation, provided the right-hander remains healthy for another week or so.

The Indians have had to remain flexible throughout their seven-game playoff run after weathering injuries to Corey Kluber and Trevor Bauer, pushing their rotation through several games on short rest and relying heavily on Andrew Miller and Cody Allen‘s one-two punch in the ‘pen to clinch more than a few postseason victories. While history doesn’t always favor the first team to secure their league’s pennant race, an extra week of rest should only benefit Cleveland’s beleaguered pitching staff.