Rangers' debt holder warns Selig not to seize the team

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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”
litigation.

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.

Sonny Gray was denied insurance coverage for the World Baseball Classic

MESA, AZ - FEBRUARY 22:  Pitcher Sonny Gray #54 of the Oakland Athletics poses for a portrait during photo day at HoHoKam Stadium on February 22, 2017 in Mesa, Arizona.  (Photo by Christian Petersen/Getty Images)
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The San Francisco Chronicle’s Susan Slusser reports that Athletics’ right-hander Sonny Gray will not pitch in the World Baseball Classic after failing to meet the necessary criteria for insurance coverage. He missed 70 days on the disabled list with forearm tightness and a back strain in 2016.

According to Oakland GM David Forst, Major League Baseball tried to persuade the insurance carrier to waive the requirements for Gray to pitch for Team USA, but the request was ultimately refused. Without coverage, Gray will be unable to participate in the competition, though Forst adds that the 27-year-old is still in perfect health as Opening Day approaches and should benefit from a slower spring training schedule without the added commitment on his plate.

Injuries complicated a down year for Gray, who pitched to a career-worst 5.69 ERA, 3.2 BB/9 and 7.2 SO/9 rate through 117 innings in 2016. His 1.4 HR/9 and 17.8% HR/FB rates suggested that he felt the effects of the home run spike more than most, capping a disappointing follow-up to his All-Star campaign during 2015.

While Gray works up to a healthy and productive start to the 2017 season, the Athletics will still see two players on WBC rosters next month: right-handed reliever Santiago Casilla, who is scheduled to pitch for the Dominican Republic, and fellow righty John Axford, for Team Canada.

Report: Josh Hamilton likely to undergo another knee surgery

ANAHEIM, CA - JULY 24:  Josh Hamilton #32 of the Texas Rangers in the dugout before a game against the Los Angeles Angels of Anaheim at Angel Stadium of Anaheim on July 24, 2015 in Anaheim, California.  (Photo by Jonathan Moore/Getty Images)
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Rangers’ outfielder Josh Hamilton is scheduled for another knee exam on Monday, according to Jeff Wilson of the Fort Worth Star-Telegram. Hamilton left camp last week after feeling some pain in his left knee and received a PRP injection to alleviate the symptoms. Wilson notes that both Dr. Walt Lowe and Rangers’ assistant general manager Mike Daly noticed little improvement in the days following the injection.

More drastic measures could be necessary if the 35-year-old intends to return to the field this year. MLB.com’s TR Sullivan adds that the Rangers are considering arthroscopic surgery for Hamilton, which would set him back at least 4-6 weeks and eliminate any real chance of his making the Opening Day roster in April. Until they see the results of the surgery, however, the Rangers won’t rule out Hamilton’s potential return to the big leagues in 2017.

Hamilton is looking at his third major procedure since the end of the 2015 season. He missed all of the Rangers’ 2016 campaign after undergoing reconstructive knee surgery last spring and has not seen a full workload in the majors since his 2013 run with the Angels. Should he make a full recovery this season, he figures to see some time at first base/DH or the corner outfield.