Baseball And Bankruptcy
So, maybe signing A-Rod to a $252 million dollar contract wasn’t the best idea. Maybe Chan Ho Park, Kevin Millwood, and the large number of other failed signings throughout the years weren’t exactly the draw needed to bring fans into the stadium. In any case, the Texas Rangers filed for bankruptcy this weekend. But what does this mean for the team?
The players will smooth have uniforms. They won’t have to carpool for road trips. As a matter of fact, the normal day to day operations of the team will still continue. The reason for the bankruptcy is to aid speed along the ever continuing saga of the sale of the Texas Rangers to Hank Greenberg, Nolan Ryan, and a group of investors. One of the main issues that was holding up the sale of the team was the distribution of money to the team’s creditors and to the investors of Tom Hick’s group, who are selling the team. By filing for bankruptcy, this will help with the creditors. When the sale of the team occurs, this will bring in a cash flow to help pay players who are owed deferred salaries. So, A-Rod, if you’re reading this, don’t worry, you’ll still get paid.
Does this mean that the Rangers are a bad team? Not at all. They are, as a matter of fact still in first place in the AL West and are still going strong. Are they the first team to ever file for bankruptcy in baseball? Actually, according to Yahoo, the Baltimore Orioles filed for bankruptcy in 1993 and the Chicago Cubs did last year. This is just a small step to benefit usher in a modern era for the team, and should not be a distraction as they head for their first pennant in years. Nolan Ryan has even written a letter to the fans explaining the purpose for the bankruptcy. If you are involved, a copy of the letter is on the Texas Rangers website.
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Filed under Franchise Bankruptcy by on Dec 7th, 2011. 
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