Hicks Sports Group Creditors Threatening bankruptcy for the Rangers

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It’s hard to tell if this afternoon’s BusinessWeek report represents something truly new or if it’s more of a rehash of what we already know, but for the record:

The Texas Rangers, the Major League Baseball team
controlled by billionaire Thomas Hicks, may be forced into bankruptcy
unless terms of a planned sale of the team are improved or another buyer
is found, according to two people familiar with the matter.

Creditors led by Monarch Alternative Capital may
block Hicks Sports Group LLC, which defaulted on $525 million of debt
last year, from selling the Rangers and try to put the team into
bankruptcy, said the people, who declined to be identified because the
debt talks are private. The creditor group, which includes CIT Group
Inc. and Galatioto Sports Partners LLC, is seeking at least $30 million
more from the team’s sale, one of the people said.

The dynamic is the same that we’ve seen all along: Hicks’ creditors want more money, they’re threatening to force the team into bankruptcy if they don’t get it. Based on the tone of the article and based on the positions the parties have taken in the past, my guess is that the source for this specific report is one of the creditors, trying to ratchet up the pressure. The whole thing works best if you read it in a “and this time we really, really mean it” tone.

Not that it’s an empty or meaningless threat. No one ever gets rich forcing one’s opponent into bankruptcy, but this may one of those situations where it makes some amount of sense. The biggest problem of bankruptcy is the delay it causes in the asset in question getting liquidated, which often diminishes its value. The nut of this dispute, however, is Hicks’ proceeds from a land sale to Greenberg along with the Rangers. Land for mixed-use development — which is what this land, next to the Ballpark, is — is likely about as down in the dumper as it’s ever going to be right now.  Yes, bankruptcy will cause everyone to incur costs in the short term, but if the whole thing gets tied up for months or longer that same piece of land is still going to have to be disposed of in the end, and there’s every reason to believe that it will be worth more later than it is now.

But however that shakes out — and there are a million ways it could shake out — this report can be viewed as a signpost.  A week ago it was reported that Major League Baseball was stepping in to try and persuade the creditors to get the deal done. At the time Greenberg made noises that it would get done next week. The next thing we hear from the creditors is a renewed bankruptcy threat.

What to make of it? Perhaps they are not all that impressed with Mr. Selig’s efforts to play peacemaker. Perhaps they are not all that impressed with Mr. Greenberg’s public statements of inevitability.  Perhaps no one — not Hicks, not Greenberg, not baseball, not anyone — has enough money to wave at Hicks’ creditors to make them think that they’d get all that worse a deal in bankruptcy court. Hard to say.

The only thing that is certain in all of this is that Greenberg will come out with a statement in the next 48 hours in which he tells us, once again, that the deal is almost done. Because that’s what he always does.

(Thanks to Kevin T. for the heads up)

And That Happened: Sunday’s Scores and Highlights

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Here are the scores. Here are the highlights:

Braves 10, Marlins 9: The Braves rallied for six runs, all with two outs, in the bottom of the ninth to walk off winners on getaway day against the Marlins. The Marlins took a 6-0 lead in the fourth inning after Lewis Brinson cracked a grand slam down the left field line. Miguel Rojas hit a two-run homer in the seventh to bring the Marlins’ lead back to six runs at 8-2. The Braves entered the bottom of the ninth trailing 9-4, but Marlins relievers Brad Ziegler and Tayron Guerrero both melted down. Here’s what happened. It’s the Braves’ largest ninth-inning comeback in exactly eight years, when this happened:

Red Sox 5, Orioles 0: J.D. Martinez homered twice, tying teammate Mookie Betts for the major league lead in home runs with 15. Andrew Benintendi also homered and picked up three hits. Red Sox starter Eduardo Rodriguez pitched 5 2/3 scoreless innings, striking out seven. The Orioles had their opportunities, racking up 13 hits, but went 1-for-10 with runners in scoring position and only one of their 13 hits went for extra bases. The Orioles’ 13 hits were the most compiled by a team that was shut out since August 25, 2008 when the Dodgers racked up 13 while being shut out by the Phillies. It’s only the 22nd time it’s happened dating back to 1908, according to Baseball Reference.

Athletics 9, Blue Jays 2: Daniel Mengden was magnificent for the A’s, tossing seven scoreless frames on two hits and a walk with two strikeouts. Marcus Semien hit a two-run home run and Matt Chapman picked up three hits. The Jays committed four errors on what was a very forgettable afternoon.

Cubs 6, Reds 1: Things haven’t been going well this year for Yu Darvish, but they did go well at least on Sunday afternoon. The right-hander held the Reds to a lone run on two hits and three walks with seven punch-outs across six innings, lowering his ERA on the season to 4.95. Kyle Schwarber and Javier Baez hit back-to-back homers in the second inning off of Tyler Mahle. Joey Votto was the only Red to have more than one hit.

Mets 4, Diamondbacks 1: Clay Buchholz made his first start in over a year and it went well. He held the Mets to one run, which came on Amed Rosario‘s solo home run in the top of the sixth, ultimately the hit that knocked Buchholz out of the game. Rosario added another homer in the seventh, when the Mets scored three runs to take a lead they’d never relinquish. Noah Syndergaard fanned seven in seven innings, giving up one run on six hits and a walk. D-Backs first baseman Paul Goldschmidt remains mired in a season-long slump. He went 1-for-4 with a single and now owns an uncharacteristic .690 OPS.

Padres 8, Pirates 5: The Padres rallied for four runs in the top of the ninth, turning a 5-4 deficit into an 8-5 lead. They rapped out five singles and benefited from an error as well. Christian Villanueva hit his 12th homer of the season, a two-run blast in the fourth inning. Austin Meadows knocked his first major league homer.

Dodgers 7, Nationals 2: This was mostly a clinic on power, as the Dodgers hit three homers, one each from Yasmani Grandal, Enrique Hernandez, and Yasiel Puig. Trea Turner hit one for the Nationals. Alex Wood pitched well, holding the Nationals to two runs on three hits and a walk with four strikeouts, but left the game after apparently injuring himself warming prior to the bottom of the seventh inning. Stephen Strasburg gave up three runs on five hits and four walks with seven strikeouts in 6 2/3 innings.

White Sox 3, Rangers 0: This one was all Reynaldo Lopez. The 24-year-old fired eight shutout frames, yielding only two hits and two walks while striking out eight. In doing so, he lowered his ERA to 2.98. The three runs came on a solo homer from Welington Castillo in the second and a two-run Leury Garcia single in the third.

Yankees 10, Royals 1: Tyler Austin blasted a pair of homers, giving him eight on the season. Miguel Andujar and Austin Romine also homered for the Yankees in what was a drubbing of the lowly Royals. Sonny Gray went eight innings, giving up a lone run on four hits and a walk with five strikeouts. The Yankees now have a major league-best 30-13 record while the Royals drop to 14-32. Only the White Sox (.302) have a worse winning percentage than the Royals (.304).

Cardinals 5, Phillies 1: Jack Flaherty was phenomenal for the Cardinals, striking out 13 batters while limiting the Phillies to a run on two hits and a walk over 7 2/3 innings. 21-year-old Freddy Peralta also struck out 13 earlier this season. Before Flaherty and Peralta, the last pitcher younger than 23 years old to strike out 13 in a game was Noah Syndergaard nearly three years ago against the Diamondbacks. Aaron Nola, who has been ace-like all year for the Phillies, didn’t have his best stuff on Sunday, surrendering four runs over six innings to the Cardinals. Rhys Hoskins homered but Odubel Herrera‘s on-base streak finally ended at 45 consecutive games. It’s tied for the fourth-longest in Phillies history.

Twins 3, Brewers 1: Logan Morrison knocked in two runs with a single to right field in the bottom of the eighth, breaking a 1-1 tie. That proved to be the game-winning hit as Fernando Rodney came in and struck out the side in the top of the ninth to seal the deal.

Giants 9, Rockies 5: The Giants scored nine runs for a second consecutive day. Gorkys Hernandez, Brandon Belt, and Nick Hundley each homered, accounting for six of the nine runs. Nice. The Rockies got three hits each from Nolan Arenado and Trevor Story but it wasn’t enough. Starters Ty Blach and Tyler Anderson both had forgettable days on the mound, giving up five and four runs in 5 1/3 and 4 1/3 innings, respectively.

Angels 5, Rays 2: Shohei Ohtani continued to pitch well, holding the Rays to a pair of runs on six hits and a walk with nine strikeouts. With seven major league starts under his belt, he’s sporting a 3.35 ERA. He’s also batting .321/.367/.619. Sergio Romo started for the Rays for a second day in a row. He pitched an inning yesterday before giving way to Ryan Yarbrough. This time, he got four outs before Matt Andriese relieved him. Martin Maldonado homered for the Angels; Johnny Field went yard for the Rays. Matt Duffy collected three hits as well.

Tigers, Mariners (11 innings): Mitch Haniger hit a game-tying two-run home run in the bottom of the ninth inning to send the game into extras. Jean Segura broke the 2-2 tie in the bottom of the 11th with an RBI single. Tigers starter Francisco Liriano brought a no-hitter into the seventh inning but lost it when Haniger singled to center. Liriano ended up giving up the one hit and walking three while striking out five on 102 pitches over eight scoreless innings.

Astros 3, Indians 1: Lance McCullers had his best stuff working, bringing a bid for a no-hitter into the sixth inning. He ended up going seven frames, giving up just a hit and two walks with eight strikeouts. Brian McCann broke a scoreless tie in the bottom of the seventh with a two-run home run off of Carlos Carrasco.