As expected, the creditors are objecting to the Rangers bankruptcy plan

6 Comments

The first hearing was held in the Texas Rangers bankruptcy yesterday.  As I presumed might happen, the creditors to Hicks Sports Group spoke up and objected to the Greenberg-Ryan sale, insisting that baseball “fast-tracked” the team’s sale to a lower bidder and that “there’s a better bid out there.”

There will be a lot happening in the bankruptcy case because, as we established on Monday, bankruptcy is really friggin’ complicated.  The creditor’s objection, however, is the thing to watch, because it’s the thing that could derail the sale as currently constructed.

With the usual caveat of “please let me know if I’m wrong about this, bankruptcy experts,” the upshot of what is going to happen now is that the judge will hold a hearing as to whether, in fact, there is a better deal for the creditors* out there, and if he finds that there is, he will repoen the bidding, allowing in Jim Crane, Dennis Gilbert, you, me and anyone else who wants to buy the Rangers to bid again. The hearing is set for July 9th.

The inquiry about whether a better bid exists isn’t merely a price comparison however. For example, it’s quite possible that the Crane and Gilbert bids are no longer operative and Greenberg is the only game in town. It’s possible that, even if they are operative and had higher sales prices that their terms for the creditors were no better and in fact worse than Greenberg’s.

What I’m saying here is that just because we’ve heard reports that Greenberg wasn’t the high bidder doesn’t mean that the bankruptcy court will put the kibosh on this deal. Indeed, in filing this bankruptcy the Rangers — no doubt in consultation with Greenberg — knew that this analysis would likely happen and felt confident enough about their chances to go through with it.

We’ll know if this was a good gamble some time after July 9th.

*Until now all decisions on the sale have been between the Rangers, the Greenberg Group and Major League Baseball.  In the usual order of things that’s fine — they can decide to do what they want to do, and if the Rangers want to take a lower bid they can.  Once the team goes to bankruptcy court, however, the law mandates that the best interests of the creditors — and not just the best interests of the owner of the bankrupt business — reign supreme. 

Twins designate Phil Hughes for assignment

AP Photo/Ron Schwane
Leave a comment

Phil Hughes was officially designated for assignment by the Twins on Tuesday, the culmination of multiple injury-plagued seasons and poor performance.

Things couldn’t have started out much better for Hughes in Minnesota. The former Yankees hurler joined the Twins on a three-year, $24 million contract in December of 2013 and reeled off a 3.52 ERA over 32 starts during his first season with the club. He set the MLB record (which still stands, by the way) for single season strikeout-to-walk ratio and even received some downballot Cy Young Award consideration. The big year resulted in the two sides ripping up their previous agreement with a new five-year, $58 million deal, but it was all downhill after that.

Hughes took a step back with a 4.40 ERA in 2015 and struggled with a 5.95 ERA over 11 starts and one relief appearance in 2016 before undergoing surgery for thoracic outlet syndrome. He wasn’t any better upon his return last year, putting up a 5.87 ERA in nine starts and five relief appearances. Hughes missed time with a biceps issue and required a thoracic outlet revision surgery in August. He began this year on the disabled list with an oblique injury, only to put up a 6.75 ERA over two starts and five relief appearances before the Twins decided to turn the page this week.

Hughes is still owed the remainder of his $13.2 million salary for this year and another $13.2 million next year. The deal didn’t work out as anyone would have hoped, but unfortunately this is another case of health just not cooperating.