Bad News For the Rangers

Seems like Tom Hicks is putting together a bid to keep the team:

DALLAS — Texas Rangers owner Tom Hicks said Wednesday that he’s putting together his own group of mainly local investors, including team president Nolan Ryan and former Dallas Cowboys quarterback Roger Staubach, in an effort to maintain majority ownership in the club.

Hicks expects at least five groups, including his own, to submit proposals by Friday’s deadline. At that point, Hicks and his staff will analyze the proposals and decide which one makes the most sense to pay down or eliminate debt accrued by Hicks Sports Group.

Any change of ownership, including Hicks’ new group, would have to get the approval of Major League Baseball, the National Hockey League and the 40 lenders of HSG. The reason the NHL is involved is that HSG owns the Stars and the sale affects HSG’s debt.

Hicks said the process of finding a new owner could be completed within the next 45 days.

I have a hard time believing that MLB will approve such a deal, and it is hard to fathom who would invest in HSG when they are so highly leveraged.  How would you feel if you had submitted a proposal only to find out that you were out bid by $1 by the existing owner? 

The more I think about it, the more I think Hicks probably had this planned from the beginning.  Hear me out.  He buys the team and then over the years leverages the hell out of it to buy other interests (i.e. The Liverpool Football Club and Mesquite Rodeo).  Fourty banks, yes FOURTY banks have loaned him money during this time and when the economy and the financial markets collapsed his house of cards crashes.  He has stated for years that he wanted to control the Rangers and Stars for generations, letting his kids run it after he is gone.  He runs out of cash midway through the season, has to get a cash infusion of $15 million from MLB who basically took over the club at that point and he defaulted on his loans to both the Stars and the Rangers.

How do you get out of this mess?  Simple, you take four bids from outside groups, MLB states that it is expecting the bids to be in the $450-$550 range, but that is based on numbers before the financial collapse.  When the bids come in low, you put your own group together, offer a few million more than low bid and basically tell the banks that this is your best offer, take it or leave it.  They settle for 70 cents on the dollar and now instead of losing control of the team, you basically had your investers buy off your debt for 70 cents on the dollar.  You wait until the economy picks up again, the team is on a roll headed to the Playoffs and then you are able to borrow money again to buy out the new investors.

In the mean time, Tom Hicks remains the owner of the Rangers.  I wish he would just go away………

Advertisements

Comments are disabled.

%d bloggers like this: