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Now the Texas Attorney General objects to the Rangers bankruptcy

Jul 8, 2010, 10:13 AM EDT

I imagine there have been worse “prepackaged” bankruptcies in the history of Anglo-American jurisprudence, but there hasn’t been one that got as much press as the Rangers’ has.

The latest: The Texas Attorney General urged the bankruptcy court yesterday to reject the team’s current reorganization plan.  Add this to the fact that the bankruptcy trustee wants the Rangers’ lawyers off the case, that the creditors are objecting to the whole plan and that, rather than have this thing go through on greased skids, the restructuring officer has recommended that the team simply be auctioned, and you have an absolute mess.

The likelihood of this thing being done before the trade deadline has to be about nil at this point.  The likelihood of Chuck Greenberg and Nolan Ryan actually being the next owners of the Rangers is still high, but those odds are sinking.

The likelihood that Major League Baseball learns anything from this process such as, oh, I dunno, the folly of letting owners put their teams in the kind of debt Tom Hicks allowed the Rangers to get into?  No man can say.

  1. YankeesfanLen - Jul 8, 2010 at 10:39 AM

    Yes, but Tom Hicks was collecting the loot of the World.

  2. cliff - Jul 8, 2010 at 1:15 PM

    Actually, what is happening is what the Rangers and MLB should have expected, rather than some rogue occurrence.
    If MLB stops use of debt, they reduce the number of buyers, and that lower the value of franchises. Not likely to happen. Further, if creditors aren’t getting paid what they are owed, then the Bankruptcy Judge and Trustee are going to make sure all available assets bring in a good and full value.
    What MLB MAY have to do is set up a system to allow franchises to be formally pledged as collateral. I believe that now, until they do, financed deals are all but dead.

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