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.

Red Sox could go to arbitration hearing with Fernando Abad

BOSTON, MA - SEPTEMBER 16:  Fernando Abad #58 of the Boston Red Sox pitches against the New York Yankees during the ninth inning at Fenway Park on September 16, 2016 in Boston, Massachusetts.  (Photo by Maddie Meyer/Getty Images)
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The Red Sox are expecting to go to an arbitration hearing with left-handed reliever Fernando Abad, per Pete Abraham of the Boston Globe. Red Sox president Dave Dombrowski said there was a “decent chance” a hearing would be necessary after countering Abad’s $2.7 million request with $2 million.

Abad, 31, pitched just 12 2/3 innings for Boston after the club acquired him from Minnesota at the trade deadline last season. The lefty earned a cumulative 3.66 ERA, 4.2 BB/9 and 7.9 SO/9 for the two teams in 2016. He received $1.25 million in 2016 and will remain under club control (through arbitration) in 2017. A $2.7 million salary would be a hefty increase for the veteran reliever, who has seen a significant decline since he put up a 1.57 ERA for the Athletics in 2014 and who has not amassed more than 0.6 fWAR in any single season to date.

While the Red Sox aren’t close to settling with Abad, Evan Drellich of the Boston Herald reports that they may be closing in on a settlement with left-handed starter Drew Pomeranz. Pomeranz filed at $5.7 million, while the Sox felt more comfortable at $3.6 million. The two are expected to meet somewhere in the middle to avoid an arbitration hearing later this winter.

Report: Braves sign Kurt Suzuki

KANSAS CITY, MO - AUGUST 20: Kurt Suzuki #8 of the Minnesota Twins hits against the Kansas City Royals at Kauffman Stadium on August 20, 2016 in Kansas City, Missouri. (Photo by Ed Zurga/Getty Images)
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The Braves reportedly have a deal in place with free agent catcher Kurt Suzuki, per Chris Cotillo of SB Nation. FOX Sports’ Ken Rosenthal adds that the contract is for one year, $1.5 million with up to $2.5 million in additional incentives.

Suzuki, 33, completed a three-year track with the Twins in 2016, slashing .258/.301/.403 with eight home runs in 373 PA. The veteran backstop likely won’t provide an offensive or defensive upgrade over current starter Tyler Flowers, but should give the Braves some depth at a position they’ve been looking to strengthen since the start of the offseason.

The team has yet to confirm the deal.