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.

Report: Dodgers sign Tom Koehler to one-year deal

Getty Images
Leave a comment

The Dodgers have reportedly agreed to a one-year deal with free agent right-hander Tom Koehler, per Chris Cotillo of SB Nation. The team has yet to officially announce the signing, which is currently pending a physical.

Following a mostly-productive five-year run with the Marlins, the 31-year-old flamed out in 12 starts for Miami in 2017, eventually coming over to the Blue Jays in a midseason trade for minor leaguer Osman Gutierrez. He made a successful transition to the bullpen and finished the season on a high note, pitching to a 2.65 ERA, 3.2 BB/9 and 9.5 SO/9 in 17 innings.

Koehler was non-tendered by the Blue Jays earlier this month and had attracted a fair amount of interest around the league prior to his signing. He’s expected to reprise his role as a middle reliever in Los Angeles, though Cotillo speculates that he could also bring some depth and balance to the Dodgers’ lefty-heavy rotation.