Bankruptcy trustee tells the Rangers to get new lawyers

1 Comment

Many people thought it problematic when it was revealed several months ago that Tom Hicks was both (a) selling the Rangers; and (b) part of the ownership buying the Rangers.  Different capacities, sure, in that Tom Hicks the individual was buying from an entity — Hicks Sports Group — that Hicks just so happened to own and run, but it is the kind of thing that raises eyebrows among those who are not used to the often convoluted and incestuous world of closely-held corporations.

But public perception may not be the only problem. The trustee overseeing the Rangers’ bankruptcy has a problem with at least one aspect of the overall arrangement, and that involves the law firms.  Take it away Barry Shlachter:

U.S.
Trustee William Neary asserted that all of the work – and millions
in fees – Weil Gotshal & Manges received from team owner Tom Hicks
jeopardized the fairness and transparency expected by the
public, including Rangers fans. Attorneys for the baseball
franchise are charged with acting in its best interests, not that
of the outgoing ownership.

“Undoubtedly, Weil
Gotshal & Manges’ role evolved and shifted as events
transpired before the bankruptcy case, but it was WGM’s responsibility
to focus on the conflicts issue,” Neary said in the filing with a
U.S. bankruptcy court in Fort Worth.

Weil Gotshal denies any suggestion that it was conflicted, of course.

My view: I’m just a dumb litigator who nobody ever let near the table when a complicated deal was being negotiated, but it’s not like having the same law firm all over a transaction like this has never happened before. There are a lot of ways to guard against conflicts when you have hundreds and hundreds of lawyers you can throw at a deal, many of whom don’t even know one another.  Best practice in the world? Nah, but it’s not, in and of itself, fatal.

In light of that my guess is that there was something specifically troublesome that either Hicks or the law firm was doing during the course of this deal that raised the ire of the trustee. These things tend to get ironed out pretty quickly, however, and my guess is that the law firm problem doesn’t cause any big hiccup in a deal that has enough other hiccups.

A-Rod to host a reality show featuring broke ex-athletes

NEW YORK, NY - AUGUST 12: Alex Rodriguez #13 of the New York Yankees answers question in a press conference after the game against the Tampa Bay Rays at Yankee Stadium on August 12, 2016 in New York City. (Photo by Drew Hallowell/Getty Images)
Getty Images
Leave a comment

Alex Rodriguez’s transition into retirement has featured a serious move into the business world. He has gone back to school, worked seriously on investments and has started his own corporation. Yes, he’s set for life after making more money than any baseball player in history, but even if his bank account wasn’t fat, you get the sense that he’d be OK given what we’ve seen of his work ethic and savvy in recent years.

He’s going to be getting another paycheck soon, though. For hosting a reality show featuring athletes who are not in as good a financial shape as A-Rod is:

Interesting. Hopefully, like so many other reality shows featuring the formerly rich and famous, this one is not exploitative. Not gonna hold my breath because that’s what that genre is all about, unfortunately, but here’s hoping A-Rod can help some folks with this.

Great Moments in Not Understanding The Rules

screen-shot-2017-01-17-at-10-02-33-am
6 Comments

Bill Livingston of the Cleveland Plain Dealer is a Hall of Fame voter. In the past he has voted for players who used PEDs, but he’s never been totally happy with it, seeing the whole PED mess as a dilemma for voters.

On the one hand he doesn’t like voting for users and doesn’t like harming those who were clean by shifting votes away from them, but on the other hand, he doesn’t want to pretend history didn’t happen and that baseball hasn’t been filled with cheaters forever. What to do?

This year he decided to abstain altogether. A fair and noble act if one is as conflicted as Livingston happens to be. Except . . . he didn’t actually abstain:

Major league baseball will confer bronzed immortality on a few players Wednesday when the results of the national baseball writers’ balloting for the Hall of Fame will be announced.

I had a 2017 ballot. I returned it signed, but blank, with an explanatory note.

A blank ballot, signed and submitted, is not an abstention. It’s counted as a vote for no one. Each “no” vote increases the denominator in the calculation of whether or not a candidate has received 75% of the vote and has gained induction. An abstention, however, would not. So, in effect, Livingston has voted against all of the players on the ballot, both PED-tainted and clean, even though it appears that that was not his intention.

This is the second time in three years a Cleveland writer has had . . . issues with his Hall of Fame ballot. In the 2014-15 voting period, Paul Hoynes simply lost his ballot. Now Livingston misunderstood how to abstain.

I worry quite often that Ohio is gonna mess up a major election. I guess I’m just worrying about the wrong election.