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:

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.

Clayton Kershaw completes spring training with a 0.00 ERA

Getty Images
Leave a comment

Clayton Kershaw had nothing left to prove when he exited the mound during his last Cactus League start on Friday. He finished camp with a 0.00 ERA, made all the more impressive after he extended his scoreless streak to 21 1/3 innings following 6 2/3 frames of one-hit ball against the Royals.

In six spring training starts this year, the Dodgers southpaw racked up 12 hits, four walks and 23 strikeouts. His velocity appeared to fluctuate between the high-80s and low-90s from start to start, but manager Dave Roberts told reporters that he expects Kershaw to get back up to the 93 m.p.h. range next week. Kershaw is tabbed for his eighth consecutive Opening Day start on Thursday.

The 30-year-old lefty is poised to enter his 11th season with the club in 2018. He went 18-4 in 27 starts last year and turned in a 2.31 ERA, 1.5 BB/9 and 10.4 SO/9 over 175 innings. He suffered his fair share of bumps and bruises along the way, including a lower back strain that required a five-week stay on the disabled list.

The Dodgers will open their season against the Giants on Thursday, March 29 at 7:08 PM ET. Given the sudden rash of injuries that hit the Giants’ rotation earlier today, Kershaw’s Opening Day opponent has not yet been announced.