Hey, if you don’t ask for it, you’re never going to get it, right? SportsBusiness Journal reporting:
Mark Cuban and Jim Crane want payment of $2.65 million in legal fees and
other expenses stemming from their failed bankruptcy bid for the Texas
Rangers in August . . . Cuban and Crane argue that had they not been bidding, the team would
have brought $98 million less at auction than the $593 million price for
which the club was ultimately sold.
As always, I invite the bankruptcy experts among you (and I know there are a few) to weigh in here, but that sounds completely nuts. If the frustrated bidder in a bankruptcy auction gets paid like that, doesn’t it create a huge incentive for people to bid when they’re not truly interested in winning? Because, believe me, there’s fat built in to any figure for “legal fees and expenses.” Doesn’t it also artificially inflate the value of the subject of the bidding? Doesn’t it also take money out of the creditor’s pockets when banckruptcy is supposed to benefit them above all others?
Maybe this has happened before, but I kind of doubt it. It certainly makes Cuban and Crane look like a couple of vultures.