Rangers, Stars owner Hicks eager to exit pro sports
06:37 AM CDT on Wednesday, May 26, 2010
By GARY JACOBSON and BRENDAN CASE / The Dallas Morning News
Tom Hicks said he stands to lose "a couple hundred million" dollars on the Texas Rangers and Dallas Stars, but he expects to make it up when he sells his stake in a leading English soccer team.
He also said he will be glad to exit the professional sports business.
"It's never been my primary business," he said in an interview Tuesday with The Dallas Morning News. "And it's a business I no longer want to pay the price to be in."
One thing he won't miss is the publicity that comes with owning pro sports teams, he said.
"It's a brutal invasion of privacy," he said.
Hicks is embroiled in a controversial sale of the Texas Rangers, and the outcome is far from certain.
The team filed for Chapter 11 bankruptcy protection Monday, saying it aimed to expedite a sale to an investor group headed by Pittsburgh attorney Chuck Greenberg and Rangers president Nolan Ryan.
The team also sought a speedy or "prepackaged" bankruptcy in which the sale could be done in July. That way, new owners could take control before the July 31 player trading deadline, a key on-field consideration as the first-place Rangers prepare to make a run for the playoffs.
Unpredictable outcome
But the outcome of the bankruptcy case is hard to predict.
In a Tuesday court filing, U.S. Trustee William Neary said the case should be treated as a traditional bankruptcy, not a prepackaged one. He said he would hold a meeting June 3 to form a creditors committee.
Traditional bankruptcies typically take months to resolve. Meanwhile, some creditors argue that Hicks' proposal doesn't give them enough money.
"What they did is going to cause a nuclear war here," said a person close to the creditor group. "Chuck Greenberg and Nolan Ryan will have control of the team by the trade deadline. But it will be the trade deadline of 2020."
Last year, Hicks Sports Group, owner of the Rangers and Stars, defaulted on $525 million in loans. The bankruptcy proceedings that began Monday include only the Rangers, not HSG or the Stars.
The Rangers transaction could end up giving the lenders up to about $280 million, although estimates vary. Later, they also would stand to get money from a sale of the Stars.
In a statement Monday, Major League Baseball Commissioner Bud Selig said he was prepared to submit the Greenberg-Ryan group to other baseball owners for their approval.
That's important because three-quarters of the owners must approve a sale, Hicks said.
"The creditors seriously misjudge how professional sports work," Hicks said. "It's a club. It's a club that 75 percent of the people have to decide they want to admit somebody into. It can't be forced to be sold to the highest bidder."
Creditors' objections
At a four-hour hearing Tuesday in Fort Worth before Judge Michael Lynn, creditors objected to the prepackaged plan and suggested they could force two Hicks Sports Group entities into separate involuntary bankruptcies. Lynn said both sides will present arguments on the team's reorganization plan June 15, and he set July 9 as a possible date by which the Rangers could emerge from bankruptcy.
The Greenberg-Ryan deal is valued at $575 million, the Rangers said, including the team, assumed liabilities and an accompanying land deal.
Under the bankruptcy plan, Hicks would receive some cash from the sale of the team $5 million for funds he lent the Rangers a year ago.
The land deal is valued at about $75 million. That includes $5 million cash, a $53.1 million note, assumption of a $12.8 million obligation related to the Centerfield Office Building and a 1 percent equity stake in the new ownership group.
In addition, Hicks would receive game tickets, parking passes, the title of chairman emeritus for three years and "other rights customary to former owners in the sale of professional sports teams," according to court filings.
Liverpool FC sale
Hicks said Tuesday that his efforts to sell his other teams continue.
He said he expects to sell soccer team Liverpool FC in 12 to 18 months. He continued to say that the English Premier League team one of the world's most valuable sports brands could fetch "600 to 800" million pounds or about $860 million to $1.15 billion at current exchange rates. Others place the value at significantly less.
Hicks and Colorado businessman George Gillett acquired the team in 2007 in a deal valued at nearly 220 million pounds, which at the time was worth about $430 million because the pound was stronger in relation to the dollar at the time.
The effort to sell the Stars is "quietly" progressing, Hicks said. Still, he added, "hockey has some issues," especially outside the Northeast and Canada. He said he could be a small minority partner with a group buying the Stars.
The Stars gave Hicks what he has described as his fondest moment as a team owner: the team's Stanley Cup victory in 1999.
Under his ownership, the Rangers won two division titles, the last in 1999. But they never won a league championship or World Series, despite high payrolls.
"I lost a lot of money," he said. "That was only because I wanted to win."
The Fort Worth Star-Telegram contributed to this report.
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