As odd as it may sound, the possibility that the Texas Rangers might need to borrow more against the $25 million credit line that MLB granted the club last summer may actually accelerate getting the sale completed between MLB and creditors of Hicks Sports Group. Evan Grant of the Dallas Morning News covers the story:
According to multiple club and industry sources, the Rangers will have to reach deeper into a $25 million line of credit Major League Baseball extended them if the sale is not completed by early June. The Rangers have taken $16 million since MLB extended the line of credit last summer. That was enough to last a year. Payroll has stayed essentially flat. So have revenues. Come the end of May, there could be financial issues.
As Grant notes, this incentives the lead creditor, Monarch Alternative Capital, to work toward getting the deal done. As further reported:
Whatever monies the lenders would receive would only shrink if MLB has to give the Rangers more cash. MLB is first in line to receive payback because it is a creditor of the team, not the holding company. Everybody else waits behind it. And everybody else takes less.
That realization may be starting to sink in. There has been more conversation on the sale front since last week's war of words than in the last couple of months.
The deal has had the seller (Hicks Sports Group) and buyer (the group led by Pittsburgh sports attorney Chuck Greenberg) sitting on the sidelines as MLB took over the sale process with the creditors in January.
For more see Media (and Fans) Read Close, If the Sale of the Texas Rangers is of Interest
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