The quarterly meetings of MLB’s 30 owners has just wrapped up, and as we reported yesterday, action with the league seizing control the Rangers and selling the club without creditor approval is not taking place this week.
According to Eric Fisher of the SportsBusiness Journal (via Twitter), Selig has set “another deadline [to seize and sell the club], but he declines to say what it is.”
Asked what it would take to break the stalemate between Hicks Sports Group’s $270 million offer, and the lenders demanding $300 million, Selig said, "We'll let human events determine that."
Should the league seize the club from Hicks Sports Group, they would then quickly sell it to a group led by sports attorney Chuck Greenberg and current Rangers president and Hall of Fame pitcher, Nolan Ryan. MLB would then move to revoke the $70 million in liens on the Rangers, and let the creditors fight over the remaining $200 million, if that figure still stands.
The SportsBusiness Journal reported earlier this week that should the league sell the club without creditor approval, lenders would take an unfavorable view of lending to current or would-be owners of MLB clubs in the future. According to Fisher, Selig said that he does not expect negative effects on future deals from recent letter to Rangers creditors threatening to revoke the liens.
If the action takes place, the creditors would then move to push the Rangers into involuntary bankruptcy in an attempt to gain a higher sale price through former bidders Jim Crane or Dennis Gilbert than what the Greenberg/Ryan group is offering.
The total price of the Greenberg/Ryan offer is $570 million, but includes approx. 154 acres of land around Rangers Ballpark in Arlington, and is not covered by a lien and therefore would not be part of any bankruptcy proceeding. Since the Ballpark is not owned by HSG, it is not an asset that could sold off in the sale.
Sources close to the sale would not divulge what the total assets surrounding the Rangers sale include.
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