Baseball’s Rangers May Go To Auction

Jul 12 2010 | 8:48am ET

The hedge fund creditors fighting the sale of baseball’s Texas Rangers may get their wish, after all: A higher bid for the bankrupt—if first place—team.

A court-appointed restructuring officer has recommended that the team be sold in a one-day auction, possibly as soon as the next mediating session over the team tomorrow. Major League Baseball has thrown all of its weight behind a group led by Pittsburgh lawyer Chuck Greenberg and Hall of Fame pitcher Nolan Ryan, but creditors led by hedge fund Monarch Alternative Capital have fought that deal, calling it the lowest of the three bids for the team. The Rangers are currently owned by private equity honcho Tom Hicks, who is selling the team after defaulting on more than $500 million in debt last year.

Under the auction—which would be held no later than July 16 and whose results could be opposed by MLB—the Rangers would fetch at least $15 million more than $575 million believed to be offered by the Greenberg/Ryan group. That $15 million would go to Greenberg and Ryan to cover their expenses.

A Dallas judge earlier this month once again delayed the Rangers’ reorganization confirmation hearing, which is now scheduled for July 22. The uncertainty surrounding the team hasn’t hurt it on the field: The Rangers are currently in first place in the American League West division, and last week traded for Cliff Lee, one of the best pitchers in baseball.

The two “losing” bidders for the Rangers are believed to still be interested in the team, as is Mark Cuban, the owner of basketball’s Dallas Mavericks. The outspoken Cuban has joined the bid headed by Dennis Gilbert and Jeff Beck, the New York Post reports.

It’s not the first time Cuban has tried to add a baseball team to his stable. Two years ago, he was the highest bidder for the Chicago Cubs, but lost, reportedly because MLB did not want Cuban as an owner.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.