MLB  > General MLB  > 1. The Rangers are bankrupt- do you think Baseball needs to take a look at its books a little more?
May 27, 2010, 09:18 PM
1. The Rangers are bankrupt. And in First place. The Chicago Cubs declared bankruptcy last year, and the Baltimore Orioles did likewise in 1993.
With 3 Larger market teams in financial troubles, do you think Baseball needs to take a look at its books a little more?

Dan Vachalek: No. The Rangers are't a "larger" market team. Neither is Baltimore. Chicago is, but you shouldn't really worry too much about that since they seem to be better right now.

Joe Cantiello: MLB definitely needs to open its books so we can see how much money the owners really are making??? or losing (which I highly doubt)??? but otherwise the answer to this question is not for this reason. These bankruptcies are nothing more than the owners of each specific team playing footsy with how their debt is organized and pure manipulation of the terms of their debt and profit margin. For instance Texas still owes ARod $25 million this year on terms that were set when he got traded to the Yankees way back when. Hicks needs to reorganize his debt so that sum gets absorbed favorably, for his debt resolution so when the sale of the team goes through ... which by what I am reading is a done deal now... he manages to get the most profit he can while settling his debt regarding the Rangers and his other sports franchises. That is not the only debt he needs to refinance to improve his profit margin but simply one example of why he is filing for bankruptcy. Believe me these owners are not in the business of losing money especially Mr. Billionaire and Leverage Buy Out King Tom Hicks.

Dustin Price: It's not up to the MLB to keep these teams afloat. They need to take a look at themselves and figure out what the problem is. Lower ticket price, payroll, something, there shouldn't be any problems keeping a team in the green. The teams just have to figure out a way to get more butts in the seats.

Rich Stowe: No. The problem is teams paying contracts for people who either don't produce or the team still manages to finish dead last (making the playoffs generally brings in more money). Each team receives between 60 and 80 million prior to each season from MLB's revenue sharing/luxury tax. The problem is the owner's themselves - Tom Hicks owing 125% compared to the value of the Rangers for example. Hicks is the perfect example of the bad owner - gives ARod 250 million, then trades him, but still had to pay the majority of the remaining contract thus hurting his bottomline even further. What MLB does need to do is look deeper into how the teams are spending the money they receive from the league (which they are starting to do with the Pirates and Marlins payrolls for example).


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