Maury Brown on Hicks Selling the Rangers
by Adam J. Morris on May 31, 2009 5:34 PM CDT
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PrintMaury Brown has a good blog post up, analyzing Tom Hicks' efforts to sell the Rangers, and the disconnect between his asking price and what reality reflects...
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Maury Brown
This is basically the same thing Galloway said in the Sunday paper. This guy just regurgitates his column. Given the hatred for RG at LSB, surprised this make headlines.
Well
I talked about Galloway’s column today in the morning links and said it was worth reading, and Brown is also linking Galloway’s column and giving his thoughts on what Galloway says and the situation.
I’m not sure what the problem is.
by Adam J. Morris on May 31, 2009 5:54 PM CDT up reply actions
No Problem
Just surprised that no good country bumpkin, JD hating, Nolan loving, blow hard, made the news (under some else’s name).
Hicks
This was in the Mirror (UK paper) earlier today:
“Liverpool owners Tom Hicks and George Gillett are set to issue a statement of intent about their long-term commitment to the club by landing a £350million refinancing deal.
Sunday Mirror Sport can reveal that accountants from the Royal Bank of Scotland and Wells Fargo are currently examining Liverpool’s financial figures with a view to agreeing a loan package that will ease the pressure on the two Americans….The deal will hinge on Hicks and Gillett pouring more of their own personal finance into Anfield – and the pair are looking to raise funds by selling off some of their other sporting interests in the United States."
"I dont care to debate with a troll." - Sharky
Hicks
Really he needs to sell liverpool to the dubai group and pour his extra money into the rangers
"I'm against picketing, but I don't know how to show it." - Mitch Hedberg
Ok, so that's roughly $565M US.
Thinking out loud here, would that not get Hicks off the hook of selling a controlling interest? We are looking at approximately $525M overdue, add in ~7.5% for penalties, interest, fees, etc.
I suppose the sticky wicket is “pouring more of their own personal finances into Anfield”. We have no idea of this amount of fundage.
Perhaps, since it appears he may need less than originally thought, that he may be seeking to buy out his minority partners, and thus maintain his majority stake. Of course, I would assume this would involve Hicks selling part of his own stake, or this would not be dragging on so long.
Just a thought…
"Back on the scene, with a gangsta lean" RW
"you gonna lose your horse. seriously." FX2
Yes we can! November 04, 2008
Refinancing deal
That deal is solely for Liverpool- I think Hicks is trying to sell part of the Rangers to raise money for that “personal finances” part that the Bank of Scotland and Wells Fargo want him (and Gillett) to put into Liverpool.
Hicks and Gillett each own 50% of Liverpool FC- and honestly, I’d rather they both sell that club as well, since my interest in them is about as equal to my interest in the Rangers.
"I dont care to debate with a troll." - Sharky
One of his clubs is gonna end up screwed, blued, and tattooed
the guy is leveraged to his eyeballs, has less than 2 months to settle the loan with UBS and if he defaults in england the FA seizes his club and sell every player until the clubs budget is balanced, he wont default on that one, which means he has to sell the rangers and take whatever offer he can unless he has a few hundred million laying around, which if you add up what he owes in loans becomes obvious that he doesnt.
Everyday he waits, the interested parties have more power over the situation and every single person whether fan, potential buyer or seller, knows it.
this could be really really interesting in a blood on the saddle kinda way
mormons stole me and held me against my will with Oklahoma beer and 12+ hour work days.
The situation isn't that dire, fwiw.
Defaults and refinancing negotiations happen like this all the time.
This isn’t the same thing as a West Ham or Phoenix Coyotes, clubs that are truly bankrupt.
Actually, it is that dire
Hicks can no longer afford all he owns. He must sell one major asset. No one has the money to buy Liverpool from him. So he announced that he will sell the Rangers for more than their listed value. Good luck.
by Mark from OC on Jun 1, 2009 12:47 AM CDT up reply actions
It's an interesting point...
Still, why shouldn’t Hicks expect the Rangers to sell for more than the Padres? Especially considering that he needs a bit over that price ($500 million for the Padres, $525 million debt for him) to come out even? I get that the economy is bad, but it wasn’t that long ago that the Padres were sold.
I’m rooting for Nolan Ryan to come out on top in this whole deal, because that seems to be the path of most consistency moving forward. The higher the price, the less likely it seems that scenario will happen. Unfortunately, I see the price going higher than $400 million.
Padres/Rangers
On the sale of the Rangers and Padres…
If you read the headline of my article, the point is that asking for $600 million seems be a reach. I never said that somewhere between the $405 million Forbes valuation and the $600 million was not possible (although, as I mention later in this post, it doesn’t seem likely to me).
As for the Padres sale, the key difference is that the sale process is being done over time — the only reason that Moores is selling is due to the divorce from his wife. The transfer from Moores to Moorad will occur over a 5-year span in a very controlled fashion — the markets should correct between now and then.
Hicks needs the cash yesterday, thank you very much, due to the default on the $525 million through HSG. I said within the article:
Why the incredible $200-$250 million gap? Hicks appears to be looking to a figure that will dissolve his outstanding HSG debt and pick up a bit of profit. There’s a small (actually, large) problem with that. With the economy in its worst shape since the Great Depression, the effect has been to take a baseball bat to franchise valuations. Add in the difficulty in reaching needed credit with banks that have a stranglehold on releasing lofty sums, Hicks seems to be on the losing end of possible offering figures. After all, if the Chicago Cubs, Wrigley Field, and a 25 percent stake in Comcast SportsNet Chicago nearly didn’t break the $900 million mark in this market, how can Hicks think that the Rangers will go for $600 million?So, as mentioned, $405 million is most likely the floor. Depending on the credit markets and the desire by McDavid to gin the price up, there is a good possibility that the sale price (if it is the controlling interest).
Finally, one needs to think about this: Hicks is selling his stake, it is not the sale of the franchise in total. Therein lies the key difference between the Padres and Rangers sale.
so who is the owner of the minority shares that hicks doesnt own?
mormons stole me and held me against my will with Oklahoma beer and 12+ hour work days.
thats what im curious about
i thought he was the defacto owner
"I'm against picketing, but I don't know how to show it." - Mitch Hedberg
What percentage
is Hicks’ stake? I found a report from when he bought the team that he expected to own about 80%. Does anyone know if his share was/is still about 80%?
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Why wouldn't
you open negotiations above market level?
"Guillermo Moscoso despite his stunning game yesterday, is not a legit prospect. He is simply too old, too skinny, too weak, and lacks the fastball to make it at the professional level. ." - crops.mlblogs.com
Kyle Mc
On the initial post in the thread… I have no horse in the Rangers sale outcome any more than I had a horse in reporting on the sale of the Cubs, Padres, Braves, etc., etc., etc.
This has been so well covered
both here and in the local papers.
"Hustle doesn't cost a dime and it looks good." - Pete Rose as Channeled by Marcus Lemon
Any by Will Carroll, and by Cuban himself on Twitter
It’s not happening.
"wORLD sEIRES HERE WE COMER!!!!!!!!!"by bigsteve on May 29, 2009 10:21 PM PDT
"Elvis Andrus has just performed a miracle." -Eric Nadel
OT: Wow
anyone see what bruno did to eminem on the movie awards?
"if my kid said 'uhh' that much, i would say, Hey! ... stop saying 'uhh' that much..." - dennis miller
x
http://www.youtube.com/watch?v=VXy5pQOOfJk
"if my kid said 'uhh' that much, i would say, Hey! ... stop saying 'uhh' that much..." - dennis miller
I think so
The audio sounded too good to me to be live and Cohen mentioned his name.
Eminem probably has no problem with it because it coincides with his new album’s release.
Plus it’s just funny.
by brettgardner on May 31, 2009 9:28 PM CDT up reply actions
I don't know.....
Eminem’s reaction is pretty well done if he was in on it. I could see it going either way.
Well
Either way, I laughed. I also watched 30 more seconds of the MTV Movie Awards than I otherwise would have.
by brettgardner on May 31, 2009 10:23 PM CDT up reply actions
not a chance
"if my kid said 'uhh' that much, i would say, Hey! ... stop saying 'uhh' that much..." - dennis miller
Not quite comedy gold
maybe a much less precious metal, like, I dunno, tin.
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Tangentially related note
Rangers’ average attendance over their first 26 home dates is now up 13.2 percent over last season’s first 26 home dates (up from 12.6 percent after last night’s game) and up 12.2 percent overall.
by Joey Matschulat on May 31, 2009 9:17 PM CDT reply actions
Only 23K today
It looked a lot higher on TV, and I thought they said yesterday that there were only a few thousand seats still available.
by Adam J. Morris on May 31, 2009 9:23 PM CDT up reply actions
The upper decks were fairly empty
There were still a ton of people in line to buy seats at the start of the game.
there was a lot more than 23k there
judging by being in the stadium, the difference b/t 23k and 30k is pretty noticeable. maybe it was that low, it was kinda hot, but it felt a lot more crowded than that
mormons stole me and held me against my will with Oklahoma beer and 12+ hour work days.
i owe
about $9,000 to credit cards and my wife had $50,000 in college loans. we hope to get a house in a few years. i know his debt is MUCH more than mine, but i don’t feel sorry for him at all.
Omar Vizquel: your starting shortstop for the 2009 AL all-star team.
This.
¡Prefiero morir de pie que vivir siempre arrodillado!
I came here to split hairs. And you?
by inactive lsb user on May 31, 2009 9:59 PM CDT up reply actions
his house will be in dowisetrepla
"I'm against picketing, but I don't know how to show it." - Mitch Hedberg
I like that show. It'd be even better if it wasn't for the presence of Ross 2.0 as the lead character.
Although one could argue you need a boring sensitive guy to balance out all the craziness and keep it from becoming basically a sketch show.
Still… Ted sucks.
The 40 Trumps All!!!
Chris Davis will be fine. Relax.
OT: Osgood flops more than Vlade Divac
Can’t stand that mofo.
"I saw your act, just didn't make it for me. Just a lot of fluff."
I think that it was interesting
to see Cuban say he wasn’t interested in any more sports franchises.
I wonder if he thinks that sports has finally topped out. It has pretty much always been a growth business to buy a franchise and sell franchises. Revenues kept going up with new TV contracts and higher priced seats. I wonder if we are finally near the cap of that.
I know on Bill Simmons podcast, Cuban talked about dropping ticket prices because the perception was out there that Mavericks games weren’t affordable, and he figured that would kill them when the Mavericks went through lean times.
"Guillermo Moscoso despite his stunning game yesterday, is not a legit prospect. He is simply too old, too skinny, too weak, and lacks the fastball to make it at the professional level. ." - crops.mlblogs.com
MLB owners dont want cuban and he knows it
they wont approve his sale, he isnt a good reflection on the league he is an owner of currently, he is involved in insider trading, he’s a toxic owner and he knows it and MLB knows it.
i dont think it comes down to Cuban being some sports market genius who see something no1 else sees, it comes down to MLB wanting no part of him
mormons stole me and held me against my will with Oklahoma beer and 12+ hour work days.
Considering the MLB's embrace of
Jeffrey Loria, I’m guessing their judgement of toxic owners is different from mine.
It reminds me of how now-Bankrupt GM thought it was wise once upon a time to borrow money to buy out Perot, rather than listen to a guy who was telling them their management stunk. Its a shame that GM didn’t realize their management has sucked for decades now.
I still am not convinced that sports are topped out for awhile. They’ve already gone to cable for revenues. I don’t see a lot of places left to go for more.
"Guillermo Moscoso despite his stunning game yesterday, is not a legit prospect. He is simply too old, too skinny, too weak, and lacks the fastball to make it at the professional level. ." - crops.mlblogs.com
Why would MLB hate...
…having ML farm teams grow good players to trade(or let become free agents) to big market teams once they hit their prime?
???
I don’t understand your point.
"Guillermo Moscoso despite his stunning game yesterday, is not a legit prospect. He is simply too old, too skinny, too weak, and lacks the fastball to make it at the professional level. ." - crops.mlblogs.com
Why would MLB not embrace Loria?
He grows good players and trades them to big market teams. Big market teams having the best players is more important than the Marlins drawing 35,000 a night.
i may be wrong but
i think loria was involved in some shady financial deal worse than cubans insider trading bit. not sure though but i think thats what he is referencing.
mormons stole me and held me against my will with Oklahoma beer and 12+ hour work days.
No, you're missing the point
Loria just wants to make money, so do the other owners. If Cuban got a club he would agitate for changes and stir things up. They only want a new owner who will shut up and make money.
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Wish I had the link, but regarding GM...
I saw an article the other day that compared their dilemma with Chrysler’s, and base on the figures I saw, their cost of building a vehicle was WAYYYY higher than Chrsysler’s.
GM is one VERY poorly run company.
The Texas Rangers have been synonymous with explosive firepower ever since they emptied 130 rounds into Bonnie Parker and Clyde Barrow in 1934. - Alyssa Milano
The NBA loves Cuban
I doubt they would call him a toxic owner. Yeah, from the league’s perspectives, there are some things they would have him change — but on the whole he has had a massive positive impact on the league.
"He will not coddle them. Nolan Ryan doesn’t coddle." - Jeff Passan
I doubt it's quite that bad
If he thought Stern was really screwing him in some way or costing him money, he’s already said he’d sell the mavs.
"He will not coddle them. Nolan Ryan doesn’t coddle." - Jeff Passan
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