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The Rangers have failed to make deferred compensation payments for months

Feb 15, 2010, 9:57 AM EST

The biggest reason the sale of the Texas Rangers still hasn’t gone final is because the team’s creditors are angry that all kinds of cash is coming off the top of the deal to go to Tom Hicks and others, leaving less for them.  One of the “others,” SBJ reports today, is a deferred compensation fund that the Rangers are required to maintain pursuant to the Collective Bargaining Agreement. Yeah, they’ve been defaulting on that:

The Texas Rangers have been
in violation of baseball’s collective-bargaining agreement since at least last
season for failing to pay $39.55 million into a deferred compensation fund,
according to a letter sent on Oct. 22, 2009, by MLB executive vice president
Rob Manfred to the bidders for the ballclub. The MLBPA is aware of the
situation, Manfred wrote in the letter, and the union’s executive director,
Michael Weiner confirmed, in response to SportsBusiness Journal questions.

Weiner confirms that the team has not yet defaulted on any specific deferred compensation obligation (i.e. all players who have such arrangements have gotten all of their checks) but a violation is a violation, and if and when Chuck Greenberg gets the team, he’s going to have to replenish that fund with a cash payment.

There’s that word again. “Cash.”  The thing that some have reported this deal is short on. The thing that is still keeping the creditors from signing off on the sale.  You read stuff like this and you can’t help but wonder whether Greenberg has enough on the table right now.

  1. Old Gator - Feb 15, 2010 at 10:19 AM

    And you also have to wonder…well, no, you don’t really, but it sounds like a comfortable platform from which to launch a tirade…where the hell Bud Light has been while these problems have continued to mount. Cover Hicks’ ass, maybe? But no, Bud is devoted to the good of the game, you know, like the Supreme Court is devoted to the good of democracy. In both cases, except where Pete Rose is concerned, of course, the object appears to be to decriminalize corruption. Hey, go for it! That could make Macondo county government legitimate in one fell swoop, and shut up all those whiners who think our school budget money was stolen to buy Scrooge McLoria a stadium.

  2. APBA Guy - Feb 15, 2010 at 10:55 AM

    Perhaps Hicks has been hanging around the EPL too much, as his handling of the Rangers sale reminds me more and more of Portsmouth in the Premier League, with its shady insider dealings and cash payments being wired to offshore accounts. Of course, Portsmouth is last and boarding the express elevator to the Coca-Cola division next year. How does that 50% pay cut sound to you, fellas? Mismanagement doesn’t end at the CFO shop.
    And Gator is right: where is Bud? And if I’m a Rangers fan, I’m thinking “Do I really need those season tickets now? Maybe I can wait until I see how the team is doing.”
    I wonder if some of that Hicks money is going to the “Help Texas Secede” committee. They can become a shire in England so Hicks’ shenanigans will get even less scrutiny than they do now.

  3. Michael - Feb 15, 2010 at 2:12 PM

    Actually Portsmouth is right now boarding the express elevator to being dissolved.
    And I don’t think Liverpool supporters are entirely sure Hicks won’t run their team into the ground, either.

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