FanPost

Yet more bad news on the team sale

According to Evan Grant, the team may need to borrow more from MLB to make payroll as soon as next month, and it may make signing draft picks nearly impossible for anything over slot. 

 

According to multiple club and industry sources, the Rangers will have to reach deeper into a $25 million line of credit Major League Baseball extended them if the sale is not completed by early June. The Rangers have taken $16 million since MLB extended the line of credit last summer. That was enough to last a year. Payroll has stayed essentially flat. So have revenues. Come the end of May, there could be financial issues.

This actually serves as incentive for both MLB and the lenders, now led by hedge fund Monarch Alternative Capital, to finalize a deal 14 months in the making.

After that? Everybody's position would take a turn for the worse. And while MLB would eventually get its money back and the lenders would eventually recoup most, if not all, of their money, the poor Rangers could be left with a barren draft class. There would be no impact on the day-to-day operations of the club, but big-ticket items (think over-slot draft bonuses and payroll flexibility) would once again be out of the question.

 

Apparently, despite all the noisy back and forth last week between MLB and Hicks, there are has been zero progress.  Damnit this sucks.

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