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MLB is pushing Hicks’ creditors to sign-off on the Rangers sale

Image (1) Rangers%20Logo.jpg for post 3962

Jeff Wilson of the Star-Telegram reports that MLB is stepping in to the Tom Hicks-HSG Creditors dispute in an effort to get the Rangers sale locked down:


The last obstacle delaying the sale of the Texas Rangers could be cleared this week, thanks to an assist from Major League Baseball. Sources confirmed that the lenders who hold $525 million in Hicks Sports Group debt were sent a request from MLB to reach a settlement with HSG by the end of the week. An agreement would allow the deal in place with Chuck Greenberg and Nolan Ryan to move forward toward final approval from baseball’s club owners.

Look, I know I’ve been critical and pessimistic about this deal for a long time, but believe me when I say that I don’t mean to be pessimistic when I ask why a request from Major League Baseball to the creditors would constitute “an assist” that could make this get put to bed any faster than it otherwise would. If it were more than a request -- if say, MLB kicked in some money or promises or something that could help bridge the gap between Hicks and his creditors -- I could see how that could wrap things up.

But what would a mere request from a non-party to the debt really do? If the creditors are trying to squeeze money out of Hicks to let this thing happen, the only thing that will make them do so is more money. From everything that has been reported these creditors are trying to take advantage of their temporary leverage to extract as much dough as possible. Based on this report all baseball is doing is asking these guys to get the deal done on Greenberg and Ryan’s timetable. So what? Everyone has been wanting that for months.

My guess, and it is just a guess, is that one of two things is happening: (1) Wilson is being a tad optimistic about what MLB’s “request” could accomplish and reaches his “assist” conclusion a bit too hastily; or (2) Baseball has done more than “request” that the deal get done. Rather, they’ve offered something to the creditors to facilitate it but understandably don’t want to be seen as bailing out Hicks any more than they already have.

Either way, everyone is saying that they think this will be done the week of April 19th.