Comments for Selig Sets Deadline on Stalled Texas Rangers Sale at http://bizofbaseball.com , comment 1 to 7 out of 7 comments http://bizofbaseball.com Sun, 26 May 2013 03:40:31 +0100 FeedCreator 1.7.3 http://bizofbaseball.com/index.php?option=com_content&view=article&id=4368:selig-sets-deadline-on-staled-texas-rangers-sale&catid=70:mlb-club-sales&Itemid=157#comment-2062 If the Rangers were forced into bankruptcy, the lenders would look to liquidate the assets of the club, which I assume would include all of the club's contracts rights, including whatever rights they have as a major league affiliate, as well as the balls, helmets, bats, ballpark etc. Basically the bankruptcy trustee would take everything the club owns and sell it to the highest bidder. But given that the Rangers club is not a debtor of these lenders, I don't see how that would happen. On the other hand, if HSG were to be forced into bankruptcy (which is the only thing that even seems feasible, since it is HSG that is a debtor to the lenders), the trustee would look to liquidate what HSG owns, which is the ownership of the club itself (the club being a corporation or other entity, not just a bunch of helmets, bats and TV rights). In that case, the same entity would continue to own the bats, ballpark, rights as a major league affiliate, etc., but someone other than HSG would own that entity. In either case you would have a bankruptcy trustee potentially deciding who gets to run the show, either through a new club entity or as the new owner of the existing club entity, so the question of whether it's the Rangers or HSG that actually goes into bankruptcy is fairly insignificant. However, the fact that this point hasn't been accurately portrayed by any media I've seen, despite the rather heavy coverage, tells me either that (a) the strategy has not been completely thought out by the lenders, (b) the lenders are trying to scare fans in order to apply pressure by claiming the team will be declared bankrupt (since the fans couldn't care less about HSG), or (c) the recipients of the leaks just misunderstand what they're being told. It's a subtle issue, so (c) would be completely understandable. But my guess would be (b). - Pinto Sat, 15 May 2010 04:26:08 +0100 http://bizofbaseball.com/index.php?option=com_content&view=article&id=4368:selig-sets-deadline-on-staled-texas-rangers-sale&catid=70:mlb-club-sales&Itemid=157#comment-2060 I'll put it this way... It's unknown at this point (or, at least, through my sources close to the sale), what the creditors plan to do. It could go either way... Rangers... HSG. Up until recently, there was a feeling that the Rangers would be the sole focus. Now, there is leaning toward HSG. But, as I said, the matter is unknown at this point. Personally, it would be better for HSG to be pushed into bankruptcy. It places onus on Hicks, which is where this should be in the first place. - Maury Brown Fri, 14 May 2010 19:26:30 +0100 http://bizofbaseball.com/index.php?option=com_content&view=article&id=4368:selig-sets-deadline-on-staled-texas-rangers-sale&catid=70:mlb-club-sales&Itemid=157#comment-2059 Yeah, So, like, bankruptcy is a procedure for creditors to maximize the value of the assets of their debtor. Creditors = Monarch and other lenders. Debtor = HSG. Asset = Rangers organization. Do we need to keep going? - Pinto Fri, 14 May 2010 16:30:01 +0100 http://bizofbaseball.com/index.php?option=com_content&view=article&id=4368:selig-sets-deadline-on-staled-texas-rangers-sale&catid=70:mlb-club-sales&Itemid=157#comment-2055 Are they forcing the Rangers into bankruptcy or Texas Rangers Baseball Partners? - ab03 Fri, 14 May 2010 06:07:28 +0100 http://bizofbaseball.com/index.php?option=com_content&view=article&id=4368:selig-sets-deadline-on-staled-texas-rangers-sale&catid=70:mlb-club-sales&Itemid=157#comment-2048 Um... It is the Rangers that would be forced into bankruptcy, not HSG. The reasoning is the attempt to garner more from the sale of the club assets by bringing in other bidders (presumably, Crane and/or Gilbert). So... Don't get confused... It's the [b]Rangers[/b], not [b]HSG [/b]that would be put into involuntary bankruptcy. - Maury Brown Thu, 13 May 2010 18:50:02 +0100 http://bizofbaseball.com/index.php?option=com_content&view=article&id=4368:selig-sets-deadline-on-staled-texas-rangers-sale&catid=70:mlb-club-sales&Itemid=157#comment-2047 I don't understand why the lenders' threat continues to be characterized as forcing the Rangers into involuntary bankruptcy. That is simply not the case. They might force HSG, the owner of the Rangers, into bankruptcy, in which case the Rangers might be an asset of the bankruptcy estate, but to say that the Rangers will be forced into bankruptcy is misleading. I suppose to a large extent it doesn't matter all that much if this fact is misstated, but you'd think that with the business angle you're coming from, and with the level of detail you're presenting, and with the fact that this issue has been pointed out in the past, and with the relative lack of complication involved with this particular fact, that it would be corrected eventually. Then again, people get more riled up when they read that their team might be declared bankrupt, than if HSG goes belly up! - Pinto Thu, 13 May 2010 18:34:10 +0100 http://bizofbaseball.com/index.php?option=com_content&view=article&id=4368:selig-sets-deadline-on-staled-texas-rangers-sale&catid=70:mlb-club-sales&Itemid=157#comment-2045 Any thoughts on the chances of a bankruptcy court blocking the sale. It's basically new territory as we really only have the NHL/Coyotes situation to go on and there were different circumstances there. The problem is that if a court decides to do anything but deny the creditors' claim, the Rangers are going to be in purgatory for a while. So what are the chances that a bankruptcy judge abides? - ab03 Thu, 13 May 2010 16:56:12 +0100