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.

Astros stave off AL West elimination, beat the Diamondbacks

Colby Rasmus, Gary Pettis
AP Photo

Facing an elimination number of one, the Astros staved off elimination in the AL West by beating the Diamondbacks on Friday night by a 6-1 margin. The Rangers suffered a heartbreaking loss to the Angels on Saturday afternoon, which temporarily put the Astros’ fate in their own hands.

Colby Rasmus hit a pair of solo homers and Jose Altuve added a solo shot of his own. Starter Collin McHugh tossed seven innings of one-run ball, limiting the Diamondbacks to six hits and a walk with six strikeouts. Reliever Will Harris allowed a solo home run to Paul Goldschmidt in the eighth, but Luke Gregerson closed out the game with a scoreless ninth.

The Astros trail the Rangers by one game in the AL West and lead the Angels by one game for the second AL Wild Card slot. The Rangers can clinch the AL West on Sunday afternoon with a win or an Astros loss. The Astros can clinch the second AL Wild Card on Sunday afternoon with a win or an Angels loss.

The Yankees lost both ends of Saturday’s doubleheader against the Orioles and lead the Astros by only one game for the first AL Wild Card slot.

If the Astros win and the Rangers lose on Sunday, they will play an AL West tiebreaker in Texas. The winner will win the second AL Wild Card if the Yankees win on Sunday, or the first AL Wild Card if the Yankees lose on Sunday.

If the Astros lose and the Angels win on Sunday, the two teams will be tied for the second AL Wild Card. They would play a tiebreaker in Houston, and the winner would play the Yankees in New York in the Wild Card game.

Video: Kelby Tomlinson slides in for an inside-the-park home run

Kelby Tomlinson
AP Photo
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Giants second baseman Kelby Tomlinson looked more like Ladainian Tomlinson the way he was running during Saturday afternoon’s game against the Rockies. In the first inning with one out against starter Chris Rusin, Tomlinson hit a fly ball into the right-center field gap at AT&T Park, a great place to go if you’re in the mood for an inside-the-park home run.

Neither Carlos Gonzalez nor Chris Dickerson could corral the ball before it rolled all the way to the 421-foot marker at the fence. Tomlinson motored around the bases, but Gonzalez made a strong throw into cut-off man D.J. LeMahieu, and LeMahieu made a great throw in to catcher Tom Murphy, but Tomlinson slid in safely just ahead of the tag.

It was an exciting play and the hit proved important as the Giants eked out a 3-2 win against the Rockies.