novolog vs humalog diabetes where to buy protonix online where to buy korean red ginseng in singapore zithromax prescription only buy viramune boots does ventolin hfa cause weight gain allegra prescription vs otc generic uk paypal elavil the vitamin shoppe coupons health canada brand levitra buy abana pharmacy online eurax hydrocortisone cream where to coumadin asacol hd price increase buy tetracycline antibiotics dipyridamole 40 mg pharmacy overnight pharmacy bupron sr online bupron sr by mail calcium carbonate delivery uk famvir dosage for herpes para que se usa cleocin acheter venlor pas cher sinemet order can we trust claritin online meclizine dosage by weight mentat for sale avandamet online legally 40 mg levitra online generic oxytrol patch atrovent for men in usa generic name for endep side effects of bentyl injection azithromycin 250mg tablet use generic metformin online canadian methotrexate buy nitroglycerin bulk legal buy viagra online ireland extendaquin brands india prescription drug sales online glucophage 850 mg 100 film tablet ilac, tricor tablets generic does levaquin cause weight gain taking accutane alcohol garden greens 48 hour acai berry detox liquid reviews will generic prandin available brand cialis how to buy nizoral pills used for medicine ciprofloxacin hcl used nexium mups venlor price india alli uk reviews what is chloramphenicol used to treat what category drug is unisom renova cream amazon premarin mail order india korean panax ginseng 100 mg benefits use promethazine coupon online bactrim prices at costco coreg sale like paxil overnight no prescription better than exelon best cialis soft prices discount cheapest colospa with no rx zoloft weight gain study generic lipitor for sale on line best drugstore makeup 2012 uk generic vasodilan switzerland bactroban 2 cream cost buy brand levitra naproxen 500 mg tabletki can meclizine hydrochloride get you high half price hydrochlorothiazide cheapest place to buy alli weight-loss aid canadian pharmacy online androgel medrol dosepak mg buy imipramine over the counter acai berry supplements in india toprol xl supplier in uk zoloft cheap us pharmacy what does norvasc 10 mg look like what is metronidazole used for std pharmacie qui vend viagra order eldepryl 120 mg order zithromax online no prescription cheap uk pills generic actos order viagra super active without prescription long term side effects of nexium 40 mg etodolac 300 mg dogs glycomet pas cher what is amitriptyline hcl side effects canadian pharmacy viagra with prescription bactroban order by phone buy viagra tablets australia stieva-a tretinoin cream 0.1 warfarin foods to avoid nhs can you buy orlistat in spain buy acivir pills australia cheap avapro sale uk bentyl abuse what is the drug revia used for indian pharmacy zantac what does liquid arimidex taste like bactrim ds generic equivalent where to buy albuterol sulfate yagara buy usa buy cephalexin for fish healthy man dramamine drugstore.com order ephedraxin without rx common accutane side effects buy brand levitra online amazon pharmacie kirchberg lu preco do cialis no brasil alli diet pill facebook suhagra over the counter usa rian dawson reaction to one man one jar toronto pharmacy online application can you buy aciclovir genital pharmacy diclofenac gel tablets purchase on line lioresal cheap price zoloft 100mg and alcohol generic differin gel 0.3 side effects of alli pills crestor usa today buy colchicine boots alli simpson tumblr 2012 is glyset a prescription drug lozol medicine online pletal purchase in canada no prescription oblong blue pill with watson 853 how to use silagra 50 do people buy alligators buy cialis soft in ireland free coupon for propecia benicar generico italiano where do i buy bystolic canadian pharmacy 24 hour drugs purchase viagra cheap hotels in yasmine hammamet buy kamagra perth buy allopurinol without rx s g petch endep medication for pain tricor share price lipitor 4 copay card list participating pharmacies how to take ephedraxin mg buy citalopram 200 high blood pressure pills online stilnox online order order combivent pill worldwide pharmacy wellbutrin buy extendaquin greece purchase benadryl dogs sinemet medicinenet cordarone pill shop discount code buy sinemet hong kong canadian alliance party leadership lansoprazole dose for cats amlodipine besylate tablets 10mg cialis 5 pas cher viagra date to go generic trental 400 mg alkohol robaxin no prescription reviews buy zyrtec online pharmacy donde comprar cytotec septra ds online vytorin tab 10-40 mg finax canada prescription what is topamax 50mg used for which is better prevacid or prilosec south australian pharmacies cheap calan 100 mg most common types of drugs used in sport cheapest actoplus met in the uk sale prescription cod lopressor compazine 10 mg cost wellbutrin experiences anxiety pharmacy technician pay in canada can you get high off meclizine hcl actoplus met coupon citalopram side effects weight loss gain order levitra on line india diclofenac breastfeeding safety atorlip-10 canadian medications without prescription buy celebrex online side effects of premarin .3mg arjuna awards in india 2012 buy brand ortho tri-cyclen topamax weight loss 50 mg ortho tri-cyclen perth australia cytotec in labor and delivery pletal with paypal payment dutas tablets side effects can you get diamox in kathmandu ultra low dose pyridium what is robaxin like what is clorhidrato de amantadina maximum aciphex dosage where to buy phenamax in canada safely cephalexin 500mg missed dose uk version of viagra super active glycomet cost where to get reglan buy female cialis in uk buy glucophage online in usa nizagara canada overnight delivery speman mg tablet lipitor online overnight shipping how to import pariet best nolvadex dosage pct tetracycline hcl 500 mg used buy zetia 100 is generic clonidine available in usa how much to buy an alligator capoten no prescription compare prices lithium drug canadian pharmacy brand amoxil online pharmacy uk 12v lithium ion car battery for sale buy accutane with paypal long term side effects of prednisolone liquid prevacid review erexin-v prix en pharmacie en france safe cialis soft buy prevacid dose by weight vermont yankee sale exelon wellbutrin wikipedia deutsch canadian online prescription amaryl spain buy alli diet pills philippines discount sildenafil ratiopharm pret wellbutrin sr available canada chloromycetin without a prescription overnight delivery cialis generic dose propecia hair loss long term side effects of prednisolone in cats side effects of taking chlamydia medication order elocon cream 0.05 where to levitra professional wellcome ordering metformin hydrochloride exelon in italia florida ventolin albuterol inhaler side effects infants generic zovirax cream 5g where to buy cheap accutane buy cheap altace online hyzaar drugstore losartan medicine coumadin side effects metoclopramide comprar purchase crestor 10 mg rosuvastatin keflex dose pediatrica clonidine refill pack zyrtec uk brand name where to buy pyridium drugs online beconase aq online australia guide to buying viagra online costco pharmacy amitriptyline price mexican pharmacy no prescription coreg renagel mail order how to by terramycin online rico rico bakery restaurant grifulvin v tablets from buy digoxin toxicity australia zebeta comprare cheap mexican pharmacies no rx order dilantin coreg tablets uk buy roaccutane cheap online canadian pharmacy online flagyl buy generic avodart online with prescription where can i get advair diskus from generic cymbalta india suhagra online order antivert canada no prescription what is clomid for steroids best place buy atarax pct buy retin a micro online how to buy coversyl online colchicine 0.6 mg price tetracycline shortage why discount cialis no prescription uk version of zestoretic antibiotic doxycycline 100 mg warfarin mechanism of action diagram buy zovirax quick viagra professional ordering online pharmacy cialis annual sales 2011 ordering viagra super active online drug shop discount buy levaquin online overnight buy tadacip 200 advair diskus 40mg clonidine 10 mg cost maxalt 10mg cost flovent weight gain what is clomid used for with steroids free printable plavix coupons want to buy alligator gar online pharmacy orlistat available over counter uk a good web page to buy celexa with no script where to buy lithium supplement when will a generic be available for abilify purinethol without script order generic prozac no prescription cheap genuine paroxetine online can you get a tattoo while on coumadin can i order xeloda no prescription in the usa canadian prescription drug costs avodart from usa pharmacy purchase actos 30mg can we trust reminyl online non prescription fucidin pharmacy zyban brand order suprax 400mg uses cost of depakote medication effexor vs lexapro for anxiety buy alli online cheap pharmacy low dose lithium for children nike air max 95 womens running shoes revatio on line purchase side effects of femara for infertility is mail order arjuna safe trazodone maximum daily dosage discount valaciclovir online seroxat side effects hair loss generic danazol uk paypal cleocin gel overnight shipping cheap cialis reviews for men purchase minocin 100mg minipress tablets what is tamoxifen 20 mg arjuna online latino without cleocin online cheapest fertomid where to buy trileptal ointment best online pharmacy generic nizagara buy cheap suprax using pay pal cipro precio mexico discount benicar levitra 20mg en ligne metformin hcl er 750 mg tablet side effects buy metoclopramide online in usa cheap generic lipitor over the counter rumalaya gel starlix express canada gonorrhea treatment guidelines 2011 do i need antibiotics for sinusitis reglan tablets pregnancy z pack side effects rash safe buy nimotop online side effects of amoxicillin during pregnancy warfarin interactions chart drugs like lexapro cephalexin capsules bp 250 mg renova paper goods acai berry better than blueberry metformin lactic acidosis diabetes blue cross blue shield anthem mail order prescriptions tetracycline mail order neurontin for men sale in uk antabuse discount voucher lithium buy canada american express canada costco login most reliable place to buy lady era online buy cymbalta paypal accepted paxil pill shop discount code amitriptyline 20 mg zyvox lawsuit settlements is zofran sold over the counter buy lisinopril greece cialis comprar mexico cystone tablet price in india natural antibiotics garlic nexium discount program very cheap tretinoin 0,025 metformin manufacturers usa side effects of korean ginseng extract purchase seroquel on line in the uk levlen combined pill buy diovan pills in the mexico what is lincocin generic omnicef antibiotic compazine 20mg tab avalide com coupons budesonide entocort capsules side effects cheapest bupron sr in the uk aciphex in croatia order risperdal consta increasing sperm count naturally confido online in usa costco pharmacy trazodone price adalat generic reviews long time side effects tadacip is hoodia legal in uk buy xenical online no prescription us cheap nolvadex pct in canada what is brand viagra pills used for to buy kamagra jelly actonel sales 2008 lopressor sr 100mg amaryl 4/1000 precio how to by isoniazid online sildenafil 100mg manufacturers serevent for sale comprar cytoxan online xenical orlistat diet plan generic cialis pay with paypal all types of drugs wiki bupron buy online canada stromectol 12mg online albendazole online overnight shipping where can i buy ginseng yagara to buy in england lincocin im dosage now panax ginseng reviews clomiphene for men and women haldol usa 1 man 1 jar original video cleocin gel purchase in canada no prescription maxalt for sale usa can buy ranitidine online cheapest actos minocycline side effects uk female viagra rx order voltaren pill buy bactrim in india online zenegra sale pills cheap diclofenac online without canadian canadian pharmacy pfizer viagra hydrea women buy generic propecia store order actos 48 mg friv 10000 net abilify next day side effects of accutane in males where to buy dulcolax drugs online viagra without prescriptions south africa s club juniors 2013 andkon arcade 1000 free flash games online med cab benadryl is viagra legal in saudi arabia tadapox sale cialis pills amoxil pink medicine buy cheap ditropan using pay pal buy zenegra greece zithromax affect birth control pills zerit mg buy reminyl tablets from buy find pharmacy express scripts non prescription viagra uk best medicine for back muscle pain what is the generic for diovan buy eulexin quick furosemide reviews side effects nizoral mg mexico buy diclofenac gel online reviews viagra women blogs safe proscar online no prescriptionsafe generic maxalt india how to take trazodone for sleep generic tadapox in usa buy cheap lasix using pay pal non prescription ethionamide pharmacy lexapro generic release primatene mist discontinued replacement cost of atorlip-20 without insurance yasmin indian restaurant newcastle emlyn order diclofenaco voltaren atrovent in children best place to buy dutasteride tamsulosin in women uk buy floxin with visa how to buy cialis in mexico wellbutrin online no prescription strattera medication order on scriptmeds brand amoxil from canadian pharmacy generic for bactroban how to get mirapex in australia canada meds no prescription stieva a review acne.org purchase baclofen cheap 10mg online pharmacy cleocin gel medicine reviews on hyaluronic acid omifin precio 2011 generic priligy india western drug kamagra oral jelly health canada innopran xl cost of ciprofloxacin ointment keppra comprare why can;t you open flomax capsules sumycin wanted online review ciplox online overnight buy differin 100mg online benicar tablets purchase on line precio alli 42 capsulas amaryl spain over counter depakote lawsuit settlements order cialis professional usa fluoxetine hcl 20 mg tablet walmart pharmacy prices adderall buy diflucan over the counter doctor prandin generic patent
Home Maury Brown Brown: Loans That Should Have Never Come Tom Hicks Way

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 869 guests online

Atom RSS

Brown: Loans That Should Have Never Come Tom Hicks Way PDF Print E-mail
User Rating: / 10
PoorBest 
Written by Maury Brown   
Tuesday, 01 June 2010 11:59

Maury BrownIf there’s been a lesson learned from the worst economic decline since the Great Depression it’s that home loans were granted to those that probably should have never been approved in the first place. Approval rules were lax and when the bottom dropped out, foreclosure rates went up.

That doesn’t mean that lending institutions suddenly said, “Stop the presses! No more loans.” What it meant was loans would continue, but with common sense that should have been there in the first place.

Such is the lesson learned from the debacle that Tom Hicks and his Hicks Sports Group got themselves into. HSG, the holding company for the Texas Rangers, as well as the NHL Dallas Stars, finds itself mired in $525 million of debt. To work on getting out from underneath this mountainous weight of debt, Hicks is unloading both franchises.

As most reading know, the sale of the Rangers has been stuck in neutral since January, as creditors for Rangers have yet to sign-off on a deal between Hicks and an investor group led by Pittsburgh sports attorney and minor league baseball club owner Chuck Greenberg and current Rangers president and Hall of Famer Nolan Ryan. Why is it stuck? Key creditors are looking for a higher bid, while baseball used a creditor threat against lenders by moving the Rangers into voluntary bankruptcy.

(See an archive of documents in the Rangers bankruptcy cases)

Today on Forbes, I highlight the PR battle that has ensued between the creditors and the group Texas Rangers Baseball Partners that are working to push the sale through (see Texas Rangers Bankruptcy Will Mean Smarter Loans, Not the End of Them For MLB). A key talking point by the lenders has been that loans to MLB will dry up. As highlighted above, fat chance.

A claimed side-effect of Texas Rangers Baseball Partners using the “pre-packaged” plan to expedite the sale of the club to a group of investors headed by Pittsburgh sports attorney and minor league baseball club owner Chuck Greenberg and current Rangers president and Hall of Famer Nolan Ryan, would be that lenders are so upset with MLB at the moment over the sale processes being rammed through without creditor approval, that loans to current owners or prospective purchasers of MLB clubs will dry up, creating the inability to refinance debt, or gain credit to purchase clubs.

As if.

What’s really happened here is bad loans to Hicks Sports Group, the holding company for the Rangers. While MLB has rules governing the amount of debt clubs can carry, HSG got around that by having banks grant credit to them, as opposed to the Rangers. Overleveraged, and under-collateralized, HSG defaulted on $525 million in loans. As the distressed debt hit the open market, predatory hedge fund Monarch Alternative Capital gobbled up $125 million of the debt, making them now the lead creditor of HSG. According to sources, Monarch continued to purchase the debt even after the exclusive agreement between Tom Hicks and the Greenberg/Ryan group to complete the sale took place in January, a possible sign that even though the creditors want the bidding opened back up to try and garner more for the Rangers’ assets, Monarch was really positioning themselves for a major payoff, regardless of the exclusive agreement.

To underscore the fact that talk of loans to MLB drying up are really nothing more than a scare tactic, the holding company for the New York Mets is nearing a $375 million refinance. This after attendance has waned at the new Citi Field that opened last season, and Mets owner Fred Wilpon lost tens of millions of dollars due to the Bernie Madoff scandal. According to the SportsBusiness Journal, “The new price is 350 basis points over the London Interbank Offered Rate, a floating-rate index that is currently around 0.42 percent. The lien on the team is for $175 million, the sources said.”

All this isn’t to say that It will all be smooth sailing in the future. Certainly, loans will not be as easily had as before (as it should), and interest rates will likely be higher, but to say they will all dry up seems near the realm of fantasy.

Ask yourself... Why would you not want to grant loans to an industry that saw record revenues (again) last year in a down economy? Why would you not want to grant loans when franchise values have continued to increase?

The lesson learned is that the loans to HSG should have never occurred, and that moving forward, every effort should be made to make sound loans to prevent the mistakes that were made with HSG to never happen again.

MORE ON THE TEXAS RANGERS:


Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey, as well as a contributor to Forbes SportsMoney blog. He is available for hire or freelance. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?