The Rangers file for bankruptcy


We’re still light on the details (Maury has the press release and some analysis), but the Texas Rangers filed for Chapter 11 bankruptcy this morning. It was a voluntary filing that is being characterized as a “prepackaged” bankruptcy proceeding, which means that all the terms of the bankruptcy are agreed
to before filing, which can result in a shorter turnaround time.  The team is characterizing it as a necessary step to allow Hicks Sports Group to sell the team to Chuck Greenberg and Nolan Ryan. The target date according to the filing: “midsummer.” You may recall that the Cubs did something like this prior to their sale to the Ricketteseseses.

This just came down so the details are still a bit sketchy, but something that sticks out to me is that the creditors of Hicks Sports Group — the ones who have been causing all the problems — aren’t part of the filing. If that’s the case, how could they have agreed to the terms of the “prepackaging?” Moreover, the verbiage in the press release says that the deal will provide “for all Rangers creditors to be paid in full.”  That can’t be technically right, because if there is enough money in the sale to fully satisfy all outstanding debts, the bankruptcy filing — which basically says that part X owes creditors more money than it has — would be tossed out, right?  This deal can’t be a “paid in full” thing. It has to be a “we’ve been paid enough to be happy” thing.

Another possibility — a pretty good one actually — is that there is separate deal in place between Hicks Sports Group and the creditors to settle the outside debt on some sort of payment plan or something else, but to do it outside the framework of the Rangers sale.*  If that were the case it would not necessarily have to be a part of this bankruptcy case. We just don’t know, however, based merely on the terms of the bankruptcy filing.  I will say that it would be pretty reckless for the team to file like this without any creditor signoff, official or otherwise, because it would invite the sort of proceeding — creditors going deep into the Rangers’ business — that they had been threatening to do back when they were at each others’ throats.

The primary upshot: there has to more going on here than meets the press release, probably in the form of some backroom dealing that will (a) keep the dirty financial laundry of the Rangers, Hicks and Major League Baseball out of bankruptcy court discovery proceedings but (b) makes the creditors happy. Otherwise, there’s no point to this filing.

Secondary upshot: if this is going down as the Rangers say it is, the team will be out of ownership limbo within a couple of months and, hopefully, able to resume normal operations, sign draft picks and add payroll in a way that a team in their competitive position should.

More on this, obviously, as the story develops.

*I’m aware that most of the debt at issue is not technically owed by the Rangers — it’s owed by Hicks Sports Group, thereby meaning that the big creditors like Monarch Alternative Captial couldn’t really go after the Rangers. But that’s kind of beside the point. All along these creditors have been making noises about dragging the team itself into bankruptcy if they weren’t paid, and it the suggestion has been strong that they would try to advance legal theories — however novel — that would allow them to encumber the team in order to get the money they are owed by Hicks.  For MLB and the Rangers to make this filing today, they have to think that such a move is not a threat.  This underscores my belief that some sort of side deal between Hicks and the creditors has to have taken place.

Kyle Schwarber is on a private plane en route to Cleveland

PHOENIX, AZ - APRIL 07:  Kyle Schwarber #12 of the Chicago Cubs bats against the Arizona Diamondbacks during the MLB game at Chase Field on April 7, 2016 in Phoenix, Arizona.  (Photo by Christian Petersen/Getty Images)
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This is happening, people.

Earlier we heard Joe Maddon being non-committal about Kyle Schwarber joining the Cubs for the World Series. Now it seems pretty clear that the Cubs are committal indeed: Jon Morosi reports that Schwarber is en route to Cleveland from Arizona on a private jet and that he’s expected to DH in Game 1 tomorrow night.

Schwarber hasn’t played in a game that counted since April 7. His potent bat is could be a windfall for a Cubs team that didn’t have a game-changing option at DH in the American League park.

Schwarber lost the whole season due to a knee injury, but he hit .246/.355/.487 with 16 homers and 43 RBI in 69 games as a rookie in 2015. His big coming out party was in the playoffs, however, when he hit three homers in five postseason games while going 7-for-13 with two walks in five games.

Carlos Santana in left field? Sure, OK.

CLEVELAND, OH - OCTOBER 15:  Carlos Santana #41 of the Cleveland Indians celebrates after hitting a home run in the second inning against J.A. Happ #33 of the Toronto Blue Jays during game two of the American League Championship Series at Progressive Field on October 15, 2016 in Cleveland, Ohio.  (Photo by Maddie Meyer/Getty Images)
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Paul Hoynes of the Cleveland Plain Dealer reports that Indians First Baseman/DH Carlos Santana shagged some flyballs in left field during the Indians’ workout today.

Sure, why not? Santana has played one game in the outfield in his major league career and that was over four years ago, but the Indians will have to play in Chicago without the DH, meaning either losing Santana’s bat or that of Mike Napoli.

It would be up to Terry Francona to decide if that happens, but ultimately I don’t think he’ll make it real and, rather, will just forget about it, because Santana’s defense out there would in no way be smooth.

I’m sorry. I’m sick today and I’m on a lot of cold medicine.