MLB Club Sales
Written by Maury Brown
Wednesday, 04 August 2010 09:23
With the auction for the Texas Rangers now underway (started at 9am CT) here’s a brief FAQ for those tracking the event:
- The last time a club was auctioned out of bankruptcy was with the Baltimore Orioles in 1993 (Peter Angelos outbid Jeffrey Loria)
- The auction has come down to two groups: One led by Chuck Greenberg and Nolan Ryan, and one led by Jim Crane and Mark Cuban
- The Honorable Russell F. Nelms is overseeing the auction.
- Media is not allowed to have cameras or recording devices in the courtroom
- The court docket shows that Nelms schedule has been cleared for the entire day for the auction.
- The bidding groups are sequestered in “war rooms” within the courthouse, and send representatives to the courtroom to make bids.
- The bidding starts at $15 million over the cash component of the Greenberg/Ryan “stalking horse” bid of $307.7 million. Given that the Crane/Cuban group met the filing deadline and was approved for auction today, Greenberg/Ryan know that there is a bid of at least $322.7 million that they must exceed.
- The exact overbid amount by Crane/Cuban will not be known until the auction starts.
- Each subsequent bid will be in $2 million increments
- Cash bids will be approved quickly by the court. Via Barry Shlachter on the Dallas Morning News, according to Martin Sosland, the attorney for the Rangers, it could take extra time – 30 min. or more – for experts to examine the value of other types of bids such as commitment for the prepayment on broadcast rights.
- The total deal, including debt obligations, by the Greenberg/Ryan group is approx. $520 million.
- All side deals, including the 154 acre land sale surrounding the Ballpark, have been removed from the auction process.
- Just before the auction, Greenberg/Ryan and Tom Hicks agreed to terminate the land agreement.
- If the Greenberg/Ryan group loses at auction they are entitled to a break-up fee that is not to exceed $13 million
- On the lighter side, today is the anniversary of Robin Ventura charging Nolan Ryan on the mound.
Look for more news as it becomes available.
Maury 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 FanGraphs and Forbes SportsMoney. 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.
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