Are the Rangers going to stiff Alex Rodriguez?


UPDATE: OK, some more research leads me to believe that the answer in the headline is “no” A-Rod is not going to get stiffed. At least probably not.

It’s possible and, in “prepacked” bankruptcies like this one, common, for the debtor (i.e. the Rangers) to  file for bankruptcy when it has the assets
to cover the liabilities but can’t pay the liabilities exactly as they come due
. This sort of Chapter 11 may allow the debtor to hold a sale — say, to someone like Chuck Greenberg! — to get fresh
cash and to restructure the timing of payments.

Upshot: A-Rod and all of the other creditors (which includes Mickey Tettleton of all people) are still quite likely to get their money, even if there is some sort of delay or disruption.

I think we all learned something today kids: bankruptcy is difficult to understand. And kind of boring, frankly. So unless a ballplayer shoots someone this afternoon, it’s going to be actual baseball content for the rest of the day.

2:09: I am obviously not a bankruptcy expert, but thankfully some of you are, and you have informed me that I got some stuff wrong below. Let me, to the best of my ability, fix it.

The notion that unsecureds don’t get paid is not accurate. They do get paid, and often, but it’s usually pennies on the dollar. Moreover, they are paid at the same rate, so if Alex Rodriguez gets, say, 50 cents on the dollar, all the unsecured creditors get 50 cents on the dollar.  It would not be kosher, then for A-Rod to get his $24.9 million and the others to get stiffed.

The practical implication of this is that yes, A-Rod is likely to get at least partially stiffed. Because if he gets all of his $24.9 million, all the creditors get all of their money and then, by definition, there is no point of a bankruptcy (i.e. a bankruptcy is defined by owing more money than you have). Since the Rangers filed for bankruptcy it means they don’t have enough money to pay all of their unsecureds at a 100% rate. That means that A-Rod should not get all the money he thought he’d get and all of the ugly union/team dynamics set forth below come into play.

Another point of clarification: there can’t be a “side deal” between the Rangers and A-Rod, because that would violate bankruptcy laws which prohibit a debtor agreeing to make preferential payments to certain creditors before the filing. I didn’t intend that meaning when I said “side deal” — I really meant that there was some understanding on A-Rod’s part that he would be taken care of in the normal bankruptcy process — but that seems far less likely given the pro-rata thing outlined above, even if it were proper for the Rangers to make such an assurance, which I’m not sure is the case.

I’d ask that the bankruptcy experts among you continue to help me out with this stuff, but for now anyway, it seems like, yeah, A-Rod is gonna walk away with less money than he bargained for.  I can’t help but think that this will become something of a problem for baseball going forward.

1:15 P.M.: Pfun Pfact from the Rangers bankruptcy filing: the largest unsecured creditor is Alex Rodriguez, who is still owed
$24.9 million in deferred compensation from his big $250 million deal.

“Unsecured” means that Mr. Rodriguez does not have any collateral for the amount of money he is owed.  Unsecured creditors rarely if ever get any of the money they’re owed when the debtor goes into bankruptcy. Your mortgage company is secured (i.e. it has a lien on your house) which means that if you stiff them, they can take the house back to satisfy what you owe them.  Your credit card company, in contrast, is an unsecured creditor. If you stiff them they can try to collect from you and can ruin your credit rating, but they can’t take your stuff and, for the most part, once you file bankruptcy, its game over for them. Which is the biggest reason why credit card companies donate a lot of money to Congressmen in order to get them to make it harder for you and I to file bankruptcy.

But that’s a subject for another blog. Let’s you and I stick to Alex Rodriguez. Is A-Rod SOL?  Are the Rangers going to really just walk away from the money they owe him? The short answer: I don’t know.

The longer answer: man, I can’t see them just doing that. Lots of teams owe deferred compensation to players. Indeed, I think the Diamondbacks spent more time in the last decade working on deferred comp deals than they did playing baseball games.  If a team were to suddenly renege on a major deferred compensation deal you’d have to think that the union would scream and the other teams — who might like to convince some of their own high-priced players to take deferred compensation — would scream even louder.  If there’s a chance they’re going to get burnt, why would any player take such a deal again?

As is the case with the Tom Hicks creditors, I can’t help but think that there is a side deal to pay Mr. Rodriguez what he is owed, be it from the Rangers or some other source.* Otherwise, the team and the league will have just created a big labor headache that no one needs.

*How that is specifically being done — if indeed it is being done — is a pretty interesting question, because I think it’s unprecedented in baseball history.  The most recent parallel I can think of is Mario Lemieux, who was owed so much in deferred compensation that he just up and converted all that debt into an equity stake with the Penguins and now owns the team.  That can’t happen with A-Rod because baseball prohibits players from doing such a thing.  Seems like it would have to be a cash thing.

Concerns over Jon Lester’s throwing ability much ado about nothing

LOS ANGELES, CA - OCTOBER 20: Jon Lester #34 of the Chicago Cubs pitches against the Los Angeles Dodgers in game five of the National League Division Series at Dodger Stadium on October 20, 2016 in Los Angeles, California.  (Photo by Josh Lefkowitz/Getty Images)
Josh Lefkowitz/Getty Images

Going into Thursday night’s NLCS Game 5, Dodgers manager Dave Roberts planned to have his team be annoying and distracting on the base paths for Cubs starter Jon Lester. Lester, you see, has a hard time making throws when he’s not pitching from the rubber, as seen here.

The Dodgers got an immediate opportunity to test their strategy, as Enrique Hernandez drew a four-pitch walk to start the game in the bottom of the first inning. Hernandez was taking leads between 15 and 25 feet, just taunting Lester to throw over to first base. Lester never did. And despite being given the luxury of such a large lead, Hernandez never attempted to steal second base.

It ended up costing the Dodgers a run. After Justin Turner struck out, Corey Seager lined a single to center field. Hernandez, large lead and all, should’ve been well on his way to third base, but he settled for staying at second base. Carlos Ruiz then flied out to right field on what should’ve been a sacrifice fly. Hernandez instead just advanced to third. Howie Kendrick grounded out to end the inning with the Dodgers having scored no runs.

In the bottom of the second inning with two outs, Joc Pederson dropped down a bunt, but Lester was able to field it and make a bounce-throw to Anthony Rizzo at first base to end the inning. Lester stared angrily into the Dodgers’ dugout as he walked off the field. If it were me, I’d have been glaring angrily not because the opposing team was attempting to exploit my weakness, but because the strategy is so poor.

The bunting would continue in the seventh inning as first baseman and noted power hitter Adrian Gonzalez tried to sneak a bunt past Lester on the right side of the infield. Second baseman Javier Baez was able to scoop it up and fire to first. Gonzalez was initially ruled safe, but the call was overturned upon replay review.

Lester countered the Dodgers’ bunting and greedy lead-taking by just pitching his game. He went seven innings, allowing just one run on five hits and a walk with six strikeouts on 108 pitches. The Cubs went on to win 8-4, taking a 3-2 lead in the NLCS. A worthy consideration for the National League Cy Young Award based on his regular season performance, Lester now has a 0.86 ERA in 21 innings spanning three starts this postseason. Turns out, the yips isn’t debilitating if you’re really good at your main job.

Cubs swat their way past the Dodgers 8-4 in NLCS Game 5

LOS ANGELES, CA - OCTOBER 20:  Addison Russell #27 of the Chicago Cubs hits a two-run home run in the sixth inning against the Los Angeles Dodgers in game five of the National League Division Series at Dodger Stadium on October 20, 2016 in Los Angeles, California.  (Photo by Harry How/Getty Images)
Harry How/Getty Images

During the regular season, the Cubs had the second-best offense in baseball behind the Rockies, averaging 4.99 runs per game. It was the best after debiting the Rockies for playing in Coors Field. There was no way, after getting shut out in NLCS Games 2 and 3, that the offense was going to stay dormant much longer. They broke out for 10 runs in a Game 4 victory on Wednesday night. They scored eight more to beat the Dodgers 8-4 in Game 5, taking a 3-2 NLCS lead.

The Cubs took an early 1-0 lead in the top of the first inning when leadoff batter Dexter Fowler greeted Kenta Maeda with a single to center field. He’d come around to score on a one-out double by Anthony Rizzo who, like teammate Addison Russell, hadn’t hit much until breaking out in Game 4.

Starter Jon Lester was able to silence the Dodgers’ offense despite their strategy of attempting bunts and taking big leads, knowing Lester has trouble throwing when it’s not from the pitching rubber. They managed just one run, coming around in the fourth inning to knot the game at 1-1 when Howie Kendrick doubled, stole third base, and scored on an Adrian Gonzalez ground out.

Ultimately, Lester lasted seven innings, holding the Dodgers to five hits and a walk with six strikeouts on 108 pitches. Addison Russell allowed him to leave with a lead, slugging a two-run home run off of reliever Joe Blanton in the sixth to break the 1-1 tie.

The Cubs tacked on plenty of insurance in the top of the eighth against reliever Pedro Baez, which proved to be rather necessary. Russell reached on an error by Baez, Willson Contreras singled, and Albert Almora, Jr. moved both runners up a base on a sacrifice bunt. Dexter Fowler then hit a single to first baseman Adrian Gonzalez, but Baez didn’t break to cover first base. Gonzalez wasn’t able to beat Fowler to the bag, allowing the Cubs’ fourth run to score. Kris Bryant hit a weak grounder to third base and he was able to beat that out as well, pushing across another run in the process. Anthony Rizzo lined out, but Baez prolonged the inning by walking Ben Zobrist. Ross Stripling relieved Baez, but he served up a bases-clearing double to Javier Baez, making it an 8-1 ballgame. Jason Heyward, as has often been the case, popped up feebly, mercifully ending the inning with the Cubs having hung up a five-spot.

Pedro Strop took over for Lester in the bottom of the eighth. He gave up a double to Andrew Toles, then hit Justin Turner to begin the inning. Though Strop was able to induce a ground ball double play from Corey Seager, Carlos Ruiz followed up with a double to left-center to push in a run. Howie Kendrick flied out to send the game to the ninth.

Closer Aroldis Chapman took over with a six-run lead in the bottom of the ninth. He issued a leadoff walk to Gonzalez, then served up a single to Yasiel Puig. Joc Pederson grounded out, but Josh Reddick knocked in Gonzalez and moved Puig to third with a single to center. Toles plated Puig with a sacrifice fly, making it 8-4. Turner grounded out to shortstop to end the game, finalizing the victory for the Cubs.

The two clubs will take Friday off to travel back to Chicago. Game 6 will take place at Wrigley Field at 8:00 PM EDT. Clayton Kershaw will start for the Dodgers opposite the Cubs’ Kyle Hendricks.