If you're curious what a sports franchise in dire economic straits looks like, you may get a chance to view one up close and personal.
It is being reported that the Texas Rangers needed to borrow $15 million from Major League Baseball to cover payroll and operating cost. When asked about the validity of the report, Rangers & Dallas Stars owner Tom Hicks referred the questions to team spokesman John Blake, who promptly had no comment. Rangers President and rumored potential buyer Nolan Ryan also had no comment on the report.
Evan Grant of D Magazine reported:
Club sources, however, said the team has paid its employees for the most recent pay period and that Hicks remains in control of the organization. According to a source familiar with the situation, the Rangers are continuing normal operating procedures and have financial resources to sign both draft picks and international free agents. The source, however, did not mention the possibility of increasing payroll at the trading deadline.
According to a source, a scenario has been in place for several weeks that would have allowed the Rangers to borrow from the MLB fund. It would not mean MLB would take control of the club, but under those circumstances, it’s likely MLB would have much more say on spending matters. The Rangers top two draft picks, LHP Matt Purke and RHP Tanner Scheppers, are both demanding bonuses well in excess of the current MLB-recommended “slotting” system.
It is being reported that the Texas Rangers needed to borrow $15 million from Major League Baseball to cover payroll and operating cost. When asked about the validity of the report, Rangers & Dallas Stars owner Tom Hicks referred the questions to team spokesman John Blake, who promptly had no comment. Rangers President and rumored potential buyer Nolan Ryan also had no comment on the report.
Evan Grant of D Magazine reported:
Club sources, however, said the team has paid its employees for the most recent pay period and that Hicks remains in control of the organization. According to a source familiar with the situation, the Rangers are continuing normal operating procedures and have financial resources to sign both draft picks and international free agents. The source, however, did not mention the possibility of increasing payroll at the trading deadline.
According to a source, a scenario has been in place for several weeks that would have allowed the Rangers to borrow from the MLB fund. It would not mean MLB would take control of the club, but under those circumstances, it’s likely MLB would have much more say on spending matters. The Rangers top two draft picks, LHP Matt Purke and RHP Tanner Scheppers, are both demanding bonuses well in excess of the current MLB-recommended “slotting” system.
It's well-known that Tom Hicks has been actively seeking a buyer for the Rangers since defaulting on an interest-only payment on a $525 million loan previously made to his U.S. sports operations.
While Hicks has claimed it's "business as usual" and that "both teams are able to make moves, if those moves make sense for the general managers" he also said "They have to be able to operate successfully and be profitable. That's just smart business.
"You can't continue to spend money if the team is losing money," Hicks added. "We are determined to create as much revenue as possible for each team, and that's one of the reasons we have changed things. One of our biggest challenges right now is to find ways to market and sell our teams."
Apparently, Hicks' Sports Marketing Group isn't what he meant by "business as usual."
Today, news has broken that Tom Hicks has dissolved the joint-marketing Rangers-Stars sales force, reassigning most of the employees previously working under the marketing groups umbrella.
Former Hicks Sports Marketing Group president Tom Lites' contract was not renewed but has said he would like to remain in the North Texas area and didn't rule out trying to put together a group of investors to make a push for the purchase of the Rangers.
"I've put in a lot of time here, and I like it here," he said. "I'm very proud of what we have accomplished."
Lites was hired as Stars president in 1993 by former owner Norman Green and acted in that capacity until 2007 when he was relieved of his duties in a front office shake-up.
The dissolution of the marketing group comes on the heels of layoffs that cost almost 10% of all Rangers front office personnel their jobs.
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