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Moments ago, John Blake, exec veep of communication for Your Texas Rangers, sent word that there is, at long last, a plan in place that will finally give Chuck Greenberg and Nolan Ryan’s Rangers Baseball Express control of the team. And, yes, it does involve “a voluntary, ‘prepackaged,’ court-supervised process under Chapter 11.” The full announcement follows, and I’ll make calls to follow up, but till then, an excerpt from the announcement concerning the $575 million transaction:
The Rangers sale will be accomplished through a voluntary,
“prepackaged,” court-supervised process under Chapter 11 of the U.S.
Bankruptcy Code pursuant to a plan previously negotiated and agreed to
by the current Rangers owners and the Greenberg-Ryan group. The
prepackaged plan, which is supported by Major League Baseball, current
Rangers ownership, and the Greenberg-Ryan group, provides sufficient
sale proceeds for the Rangers creditors to recover 100 percent of the
portion of HSG Sports Group’s debt that is guaranteed by the Rangers and
for all Rangers creditors to be paid in full.Texas Rangers Baseball Partners has requested that a hearing be held in
45 days to confirm the proposed sale and plan of reorganization. The
sale is expected to be completed by mid-summer, subject to court
approval, which will then allow the franchise to exit the Chapter 11
process.“This plan to complete the sale of the Texas Rangers serves the best
interests of the team, its fans, MLB and all other parties involved,”
said Baseball Commissioner Allan H. (Bud) Selig. “This agreement
assures an orderly process to expeditiously transfer Rangers ownership
to the Greenberg-Ryan group, and it protects the franchise’s baseball
operations. Rangers fans can have confidence that their team has the
resources it needs to compete. Clearly, this could not and would not
have happened without Tom Hicks’ leadership and hard work over a long
period of time.”
A press conference with Greenberg, Ryan and Hicks has been scheduled at the Ballpark in Arlington for 1 today. Sam “Doc” Merten, noted Dallas Hams lefty, will be in attendance.
Update: The bankruptcy filing follows, which is especially useful for those who miss Alex Rodriguez, Kevin Milwood and … Mickey Tettleton!
Texas Rangers Baseball Partners and the Greenberg-Ryan investor group
announce plan to complete sale of Texas RangersSale to local investor group to be achieved through voluntary
‘prepackaged’ Chapter 11 plan that maintains normal baseball and
business operationsParties anticipate rapid completion of process and are committed to
smooth transition to new ownershipUnder proposed plan, creditors to recover 100 percent of Rangers-related
debt; Rangers suppliers to be paid in fullArlington, TX, May 24, 2010 -Texas Rangers Baseball Partners, the
current owners of the Texas Rangers Baseball Club, and Rangers Baseball
Express, the local investor group led by team president Nolan Ryan and
Chuck Greenberg, today announced a plan to facilitate completion of the
previously announced sale of the Club to the Greenberg-Ryan group. The
sale of the Club and its lease of the Rangers Ballpark in Arlington,
together with the separate sale of the land around the Ballpark, have an
aggregate transaction value of approximately $575 million.The Rangers sale will be accomplished through a voluntary,
“prepackaged,” court-supervised process under Chapter 11 of the U.S.
Bankruptcy Code pursuant to a plan previously negotiated and agreed to
by the current Rangers owners and the Greenberg-Ryan group. The
prepackaged plan, which is supported by Major League Baseball, current
Rangers ownership, and the Greenberg-Ryan group, provides sufficient
sale proceeds for the Rangers creditors to recover 100 percent of the
portion of HSG Sports Group’s debt that is guaranteed by the Rangers and
for all Rangers creditors to be paid in full.Texas Rangers Baseball Partners has requested that a hearing be held in
45 days to confirm the proposed sale and plan of reorganization. The
sale is expected to be completed by mid-summer, subject to court
approval, which will then allow the franchise to exit the Chapter 11
process.“This plan to complete the sale of the Texas Rangers serves the best
interests of the team, its fans, MLB and all other parties involved,”
said Baseball Commissioner Allan H. (Bud) Selig. “This agreement
assures an orderly process to expeditiously transfer Rangers ownership
to the Greenberg-Ryan group, and it protects the franchise’s baseball
operations. Rangers fans can have confidence that their team has the
resources it needs to compete. Clearly, this could not and would not
have happened without Tom Hicks’ leadership and hard work over a long
period of time.”This process and sale are expected to have no impact on Rangers baseball
operations. While the sale is being completed, the current owners will
continue to have control of the Club. Motions have been filed with the
court in order that:
- The Rangers will be able to operate within their existing budget to sign and acquire amateur, international and professional players
- Ticket prices remain the same and purchased tickets will continue to be honored
- The fan experience at Rangers Ballpark will be unchanged, with all current amenities and promotions continuing as usual
- All salaries will be paid
- Rangers vendors and suppliers will be paid in full
“Since 1998, our family has taken great pride and joy in our association
with the Rangers,” said Tom Hicks, who will be Chairman Emeritus of the
Rangers. “We are proud to play an active role in resolving the deadlock
in this complex sale process. Rangers fans deserve management’s full
focus on baseball operations, and Nolan, Chuck and their colleagues will
be outstanding stewards of the Rangers. We stand ready to support them
in every way possible, and as huge fans we will continue to cheer the
Rangers on to the ultimate goal of a World Series championship.”“Our goal is to move forward with our plan to create a long-term record
of success and championships,” said Nolan Ryan, who will continue to
serve as Rangers president. “We will achieve that by being active in
the player acquisition market as well as our ongoing commitment to
develop players through one of the league’s best farm systems.”“We are pleased to take this important step towards completion of our
transaction,” said Chuck Greenberg. “Tom Hicks has laid the groundwork
for this sale in a manner that best addresses the interests of the Texas
Rangers as well as all parties that have a stake in the team. His
agreement to sell the land around the Ballpark in order to facilitate
the sale of the Rangers is just one example of how he has been
instrumental in achieving a result that is best for the franchise and
its fans. For our group, the focus will be on rewarding Rangers fans
with great performance on the field and memorable experiences in the
stands and in the community.”“Nolan Ryan has a proven track record with MLB club owners and I am
prepared to submit this to the owners promptly for their approval,” said
Selig. “Chuck Greenberg and this group of local investors are dedicated
to building the franchise’s value and continuing the team’s
contributions to the Dallas-Fort Worth community.”MLB has agreed to provide the Rangers with a new credit facility to
ensure that the Club continues to meet all of its obligations while the
sale is being completed.In a separate transaction, Ballpark Real Estate, L.P., an independent
investment vehicle controlled by Tom Hicks, whose family also controls
HSG Sports Group and its subsidiary Texas Rangers Baseball Partners,
entered into an agreement to sell or transfer to the Greenberg-Ryan
group approximately 153 of the 195 acres around the Ballpark and Cowboys
Stadium that is owned or controlled by Ballpark Real Estate or the Hicks
family. Rangers Baseball Express required this land as a condition to
its willingness to purchase the Texas Rangers. In return for the
transferred land, Ballpark Real Estate will receive cash, notes, and an
ownership position in Rangers Baseball Express.HSG Sports Group and its other primary asset, the Dallas Stars hockey
team, are not included in the filing.The filing took place in the U.S. Bankruptcy Court for the Northern
District of Texas in Fort Worth. The Rangers filed customary “First Day
Motions” with the Court, which are intended to ensure that the process
is seamless and has no adverse impact on the Club’s operations,
employees and suppliers.
