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.

The Padres non-tendered RHP Tyson Ross

SAN DIEGO, CALIFORNIA - APRIL 04:  Tyson Ross #38 of the San Diego Padres walks off the field as he's taken out of the game in the sixth inning of a baseball game against the Los Angeles Dodgers on opening day at PETCO Park on April 4, 2016 in San Diego, California.  (Photo by Denis Poroy/Getty Images)
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Per a report by MLB.com’s AJ Cassavell, the Padres non-tendered right-handed starter Tyson Ross on Friday, cutting loose their top ace after three seasons with the club.

Ross, 29, was sidelined for the bulk of the season with inflammation in his right shoulder and underwent thoracic outlet surgery in October. His injuries limited him to only 5 1/3 innings in 2016, during which he gave up seven runs and struck out five in a 15-0 blowout against the Dodgers.

Prior to his lengthy stint on the disabled list, the right-hander earned 9.5 fWAR and pitched to a 3.07 ERA and 9.2 K/9 rate in three full seasons with the Padres. He avoided arbitration with a one-year, $9.625 million deal prior to the 2016 season after leading the league with 33 starts and delivering a 3.26 ERA and career-best 4.4 WARP over 196 innings in 2015.

The Padres appear open to bringing Ross back to San Diego, reported Cassavell, albeit not at such a steep cost. Cassavell quoted Padres’ GM A.J. Preller, who was reportedly in trade talks involving Ross but unable to strike a deal, likely due to the right-hander’s recent health issues. Preller denied that those same health issues factored into the club’s decision to non-tender their ace.

With the move, Ross became one of 35 major leaguers to enter free agency on Friday.

Angels’ Pujols has foot surgery, could be sidelined 4 months

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ANAHEIM, Calif. — Los Angeles Angels slugger Albert Pujols had surgery on his right foot Friday, possibly sidelining him past opening day.

Angels general manager Billy Eppler said Pujols had the procedure Friday in North Carolina to release his plantar fascia, the ligament connecting the heel to the toes. The three-time NL MVP was bothered by plantar fasciitis repeatedly during the season, but played through the pain in arguably the strongest year of his half-decade with the Angels.

Eppler said the surgery typically prevents players from participating in baseball activities for three months, along with another month before they’re ready to resume playing in games. Opening day for Los Angeles is April 3, and the Angels hope Pujols can be ready.

“He’s at that point in his career where he’s keenly aware of what’s happening with his body,” Eppler said in a phone interview. “I don’t put the timetable on Albert like you would with your younger players. We’ll just see in Albert’s case, as he progresses, what his timetable is.”

Pujols, who turns 37 next month, batted .268 last year with 31 homers and 119 RBIs, the fourth-most in the majors – although his .780 OPS was among the worst of his career. He largely served as a designated hitter instead of playing first base due to problems with his hamstrings and feet.

Pujols heads into 2017 with 591 career homers, ranking him ninth in major league history. He is 18 homers behind Sammy Sosa for eighth place.

After playing in pain until the final week of the Angels’ disappointing season, Pujols began shock wave therapy on his foot early in the offseason, believing he wouldn’t need surgery.

But Pujols’ foot became more painful in recent weeks despite the therapy, and he huddled with the Angels’ top brass to decide on surgery after his most recent trip to see Dr. Robert Anderson in North Carolina. Continuing with conservative care would have required 10 more weeks, forcing Pujols to miss the first half of the 2017 season if he still required surgery.

“He just felt that the pain had gotten to a point where he was comfortable” having surgery, Eppler said. “If we did delay it, you’re just looking at 2 1/2 more months into the season.”

Pujols had a different type of surgery on his right foot last winter, but recovered in time for opening day. He also had plantar fasciitis in his left foot during the 2013 season, eventually forcing him out for the year when his fascia snapped.

Pujols has five years and $140 million remaining on the 10-year, $240 million free-agent contract that pried him out of St. Louis, where he won two World Series and became a nine-time NL All-Star.

The Angels haven’t won a playoff game since Pujols’ arrival and Mike Trout‘s concurrent emergence as one of baseball’s best players. They went 74-88 last season, the injury-plagued club’s worst record since 1999.