While everyone keeps assuming that the sale of the Texas Rangers to the Greenberg Group is imminent and that no one should be worrying, the fact is that the Friday deadline has come and gone and there’s still no deal. Could last month’s report of financial difficulties be the problem? Or is it something new? Jon Heyman reports that all isn’t as rosy as everyone wants it to seem, and the problem is Tom Hicks, who is acting as both seller and (minority) buyer in this deal:
But MLB has about had it with Hicks, and top officials say they may
soon take over the sale of the team, which potentially could bring the
other two hopeful buyers back into the picture, those being Houston
businessman Jim Crane, and former agent, and current White Sox executive, Dennis Gilbert, who has appeared to be baseball’s top choice from the start. The sale
price is expected to be $570 million, according to sources. One
impediment to a deal has been Hicks’ insistence upon maintaining
significant power even after collecting the sale proceeds. Greenberg’s
big edge had been that he was willing to allow Hicks to remain as a
board member who’d attend owners meetings.
MLB fronted Hicks millions in order to meet payroll and expenses last summer. One wonders, based on what Heyman is saying, what kinds of strings were attached to that deal. Could they just step in and make the deal with Greenberg — or call Crane or Gilbert — against Hicks’ wishes?
Even Drellich of The Athletic reports that the Boston Red Sox are cutting the pay of team employees. Those cuts, which began to be communicated last night, apply to all employees making $50,000 or more. They are tiered cuts, with people making $50-99,000 seeing salary cut by 20%, those making $100k-$499,000 seeing $25% cuts and those making $500,000 or more getting 30% cuts.
Drellich reported that a Red Sox employee told him that “people are livid” over the fact that those making $100K are being treated the same way as those making $500K. And, yes, that does seem to be a pretty wide spread for similar pay cuts. One would think that a team with as many analytically-oriented people on staff could perhaps break things down a bit more granularly.
Notable in all of this that the same folks who own the Red Sox — Fenway Sports Group — own Liverpool FC of the English Premier League, and that just last month Liverpool’s pay cut/employee furlough policies proved so unpopular that they led to a backlash and a subsequent reversal by the club. That came after intense criticism from Liverpool fan groups and local politicians. Sox owner John Henry must be confident that no such backlash will happen in Boston.
As we noted yesterday, The Kansas City Royals, who are not as financially successful as the Boston Red Sox, have not furloughed employees or cut pay as a result of baseball’s shutdown in the wake of the COVID-19 pandemic. Perhaps someone in Boston could call the Royals and ask them how they managed that.