More Problems for Hicks

by FormerLSBUser on Jul 1, 2009 4:43 PM CDT

I was driving around today listening to XM's "MLB Home Plate" talk shows, and heard something that seems like epic level news. A caller called in and mentioned that Tom Hicks & the Texas Rangers failed to make payroll yesterday. They said that MLB had to step in and give the team $15 million to make payroll. Whether that was office payroll or player payroll, they weren't clear.

But Kevin Kennedy who was the host said he had several personal ties in the orginazation, going back to his days here (so he said). He claimed he knew something about the situation, and was quite sure that the team "would be in different hands this coming offseason".

Now we knew Hicks was trying to sell controlling interest (PLEASE PLEASE - Mr Ryan..), but this was the first I heard of real money problems like not being able to make player payroll. Kennedy said this wouldn't affect day to day operations, because MLB has a fund set up for things like this, but he did say it probably would affect who could be brought in at the trading deadline, that we couldn't take on much (if any) salary.

This is the first I've heard of it. Either I missed something bigtime in local reporting, or nobody's talking about it. Surely I'm not the first person in DFW to mention this?

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You should have

made that obvious it was a quote. This would be interesting. I’d like to hear that car guy come out and say how much he loves Ryan, Daniels, etc. in case Ryan and his partner can’t get an ownership team together.

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by t ball on Jul 1, 2009 4:55 PM CDT reply actions

We don't want the car guy

if his involvement in the Perot mess is any indication.

Arlington, TX: home of The Blue Blur

by Brett Perryman on Jul 1, 2009 5:10 PM CDT up reply actions

Car guy = McDavid?

by N41D on Jul 1, 2009 5:17 PM CDT up reply actions

Gotta be.

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"you gonna lose your horse. seriously." FX2
Yes we can! November 04, 2008

by Rodney on Jul 1, 2009 5:21 PM CDT up reply actions

Yes.

And I agree fully with Z, we don’t want him.

Pray that Nolan can get a group together.

by bhudson on Jul 1, 2009 5:29 PM CDT up reply actions

Pray this post

doesn’t jinx J2

Minor Moosings

by Goyogringo on Jul 1, 2009 5:46 PM CDT reply actions

Are Hicks problems

due with how he financed the Texas and Liverpool purchases?

Elvis Andrus - 2009 AL Rookie of the Year
Mitch Moreland - 2009 Rangers Minor League POY

by RangerMad on Jul 1, 2009 6:34 PM CDT reply actions

Hicks

I blame the Liverpool purchase. I thought it was bad news for the Rangers when it happened regardless of what he said in the press.
I never thought the guys company had enough money to keep 3 pro teams running, and now all his eggs are going into Liverpool.

"I'm against picketing, but I don't know how to show it." - Mitch Hedberg

by rentz on Jul 2, 2009 8:53 AM CDT up reply actions

Nope

Rangers, Stars, ect are owned through Hicks Holding LLC, but Liverpool he owns and manages through himself, that asset is not a part of his others…

Horned Frog Frenzy

by FormerLSBUser on Jul 2, 2009 10:06 AM CDT up reply actions

But his money goes to all of them

I also seem to remember reading that he put the stars up as collateral for the liverpool loan.

Hicks having to divert more personal funds to one club because he owns it outside of the management group would lead you to the conclusion that they are all tied together. I dont see how anyone could say one has nothing to do with the other.

"I'm against picketing, but I don't know how to show it." - Mitch Hedberg

by rentz on Jul 2, 2009 10:14 AM CDT up reply actions

That was my understanding

The London newspaper that reported on his refinancing loans with Royal Scot. Bank said that the reason they allowed the refinance was because Hicks held the company/team outside of his other holdings and the debt from his US stuff didnt effect Liverpool…

I looked for the link, couldnt find it.

Horned Frog Frenzy

by FormerLSBUser on Jul 2, 2009 10:39 AM CDT up reply actions

Ahh

It may not effect liverpool, but i certainly think the liverpool situation has had an effect on his US interests.
I thought the refinance was now being discussed as a reality because of the extra funds brought to the party from the sale of the Canadiens

"I'm against picketing, but I don't know how to show it." - Mitch Hedberg

by rentz on Jul 2, 2009 10:53 AM CDT up reply actions

Probably plays a factor

Horned Frog Frenzy

by FormerLSBUser on Jul 2, 2009 11:43 AM CDT up reply actions

Liverpool

It’s a separate entity- Kop Holdings LLC. It’s separate both from the Rangers/Stars and Liverpool FC itself- it’s just the company that happens to own the club.

Liverpool is also a little different, since Hicks has a partner there.

"I dont care to debate with a troll." - Sharky

by RCCook on Jul 2, 2009 12:05 PM CDT up reply actions

The silence on this issue

from the local media in the last few weeks has been really interesting. The last person I heard talk or write about this was Norm Hitzges. His contention last week during a Rangers segment was that the Rangers would rank #1 in terms of clubs that MLB is worried about in terms of their money. Couple this with this speculation on a failure to meet payroll and we should be very worried.

1.) There is absolutely no way we will make any trades unless we give up someone who makes money and the team trading kicks in cash. The only problem with this is that other clubs have money problems too. Yesterday the Yankees got Eric Hinske and the Pirates had to give them, the Yankees, money to take him. If the Yankees need money in a deal, what does that say about other teams?

2.) Is this not similar to what happened in Montreal before MLB took over? Could there not be a scenario out there where MLB would take over this club before a new owner would? If Hicks is asking for too much and not getting it and doesn’t sell as quickly as MLB would like him to could they just take over?

This is a huge issue and yet no one is talking about it in the media.

"Thank God for Feldman." - Ron Washington to Eric Nadel, August 2008

by kentbenfer on Jul 1, 2009 6:35 PM CDT reply actions

MLB taking over the Rangers...

Wow… that would definitely be the worst case scenario. I’d take crazy McDavid 100% of the time over having MLB driving this team into the ground like they did with the Expos.

by TRanger on Jul 1, 2009 6:45 PM CDT up reply actions

No doubt

2009 Texas Rangers: Why The Hell Not Us?--ghtd36 on May 13, 2009

by boomer1 on Jul 1, 2009 6:56 PM CDT up reply actions

whats the crazy mcdavid stuff abt?

Scout: He was a first-round pick right? Got a huge bonus?
KG: Oh yeah.
Scout: Well, he spent a lot of it on milkshakes.
-
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by knockoutking on Jul 1, 2009 7:22 PM CDT up reply actions

The Yankees did not

need money. It’s probably more like the Pirates didn’t want to give up a player they wanted, so they settled on cash instead or something.

I agree with the rest of your post, though. I think the local media has been too willing to accept the party line on this issue.

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by t ball on Jul 1, 2009 8:37 PM CDT up reply actions

Not really.

What are they supposed to report on?

No one in the FO is gonna talk about this, and certainly Tom Hicks isn’t.

It’s not so much that they’re silent as it is that there’s nothing to say until something happens.

This is obviously of great importance to us fans, but we have to accept that things of this nature will likely take place quietly and behind closed doors and only once things start to get a little clearer will we start to hear rumor of what’s really going on.

The 40 Trumps All!!!

Everyone needs to drive a vehicle, even the very tall. This was the largest auto I could afford. Should I therefore be made the subject of fun?

by thedirkatron on Jul 2, 2009 2:30 AM CDT up reply actions

so they only have inside unnamed sources

when its in regards to cameramen getting knocked over and steroids and beer baths but when something like the stability of the clubs finances is a topic newsworthy, we’re screwed, no source will talk, no news. carry on. nothing to see here. move along, boy.

sounds about right

mormons stole me and held me against my will with Oklahoma beer and 12+ hour work days.

by Jayslick on Jul 2, 2009 3:26 AM CDT up reply actions

Well, they could be

trying to talk to the banks and MLB to see if some nugget of info might slip out. Of course all they’ll get are no comment type quotes, but still, this is pretty big and I’d appreciate at least a little digging. And I’d certainly appreciate some clarification on this particular rumor.

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by t ball on Jul 2, 2009 7:22 AM CDT up reply actions

Spoke too soon

I see below that Grant has followed up.

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by t ball on Jul 2, 2009 7:24 AM CDT up reply actions

Hey according to Josey Donuts

revenues are WAY up

by Michael Cave on Jul 2, 2009 7:49 AM CDT up reply actions

Revenues are up

but not enough to stem the tide of debt Hicks created.

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by t ball on Jul 2, 2009 8:10 AM CDT up reply actions

Holy Hell!!!!???!!

mormons stole me and held me against my will with Oklahoma beer and 12+ hour work days.

by Jayslick on Jul 1, 2009 7:10 PM CDT reply actions

evan grant came out with this

after the game

http://insidecorner.dmagazine.com/index.php/2009/07/02/texas-rangers-go-silent-over-chatter-mlb-has-loaned-team-money/#more-8723

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by studcrackers on Jul 2, 2009 4:19 AM CDT reply actions

Wow

that makes me woried about the draft picks. It may be much harder for them to go over slot if they’re borrowing money from MLB.

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by t ball on Jul 2, 2009 7:29 AM CDT up reply actions

and today's opening

of LA Signings

A baseball game is simply a nervous breakdown divided into nine innings.

by NothinG on Jul 2, 2009 8:22 AM CDT up reply actions

money for both

had already been budgeted, or so it’s been reported. We’ll see….

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by randyd on Jul 2, 2009 9:10 AM CDT up reply actions

im pretty sure their was already money budgeted to pay salaries as well

just sayin

mormons stole me and held me against my will with Oklahoma beer and 12+ hour work days.

by Jayslick on Jul 2, 2009 11:27 AM CDT up reply actions

right

people keep saying “the money was already budgeted”, but if there is no MONEY, then it doesn’t matter what the budget is/was.

There's more to the picture than meets the eye.

by tricer on Jul 2, 2009 6:03 PM CDT up reply actions

Exactly

if the cash isn’t there it doesn’t matter what the budget is.

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by t ball on Jul 2, 2009 7:28 PM CDT up reply actions

I'm not sure if it means that MLB would take over the Rangers.

Didn’t the D’Backs borrow quite a bit of money from the fund a few years ago?

by Redcaps on Jul 2, 2009 10:07 AM CDT reply actions

I think they ended up

forcing out Coleangelo to resolve all that.

"I saw a soldier try to dig a foxhole with his bare hands. He didn't notice that he'd torn off all his fingernails. I got him out of there quickly; not for his sake, but for ours. Fear is poison in combat...destructive, contagious." - Band of Brothers

by DJCahill on Jul 2, 2009 10:18 AM CDT up reply actions

My biggest fear in all of this...

Is that they don’t force him out soon enough; I would hate to see us forced into moving salaries, especially if we have to sweeten the deal with prospects to get someone to bite.

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by bking on Jul 2, 2009 11:15 AM CDT up reply actions

So my question regarding the Loans MLB makes

Are the loans to Hicks or are the Loans to the rangers? Is this Hicks saddling the rangers with more debt that will be included in the sale and hence paid back by future owners, or is it a loan to him that he is saddled with going forward?

mormons stole me and held me against my will with Oklahoma beer and 12+ hour work days.

by Jayslick on Jul 2, 2009 12:27 PM CDT reply actions

can't make payroll

or won’t?

Hall of Fame pitcher Nolan Ryan was on the same pitching staff with Danny Darwin during the 1986 through 1988 seasons. Both were described by Milo Hamilton as "tall, tough Texans." It was a source of debate amongst Astros players and fans over who would win in a fight, Ryan or Darwin. Though Astros pitcher Bob Knepper attempted to set up a fight between the two during spring training in 1988, manager Hal Lanier stopped it before it could commence. Many experts, including Astros shortstop Rafael Ramirez, felt that Darwin would win because he "looked like someone no man would want to mess with."

by gossamer on Jul 2, 2009 1:41 PM CDT reply actions