How to fix the Rangers’ ownership situation

A lot has been made, both here and on other websites, about the situation regarding the Rangers’ finances. A couple of reports have the Rangers operating as normal, with no help from MLB other than the $15 million “line of credit” Tom Hicks asked for in June.

Another report, which surfaced in the Fort Worth Star-Telegram this weekend, stated that the Rangers have been taken over by Major League Baseball. Tom Hicks has continuously denied this point, although he might just be covering his tracks or in denial if that is, in fact, the awful truth. The last team to be under the operation of Major League Baseball was the Montreal Expos, who were operated by MLB from the winter of 2001 until the middle of 2006 – after they had moved to Washington and become the Nationals.

First of all, I don’t think the club is going to move. It’s highly unlikely, considering there doesn’t seem to be a market that could support the Rangers the way this market could. I believe that the D-FW market can be one of the best, but there are a variety of problems that need to be solved before that can happen.

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A quick guide to the Cuban-Perot lawsuit

So apparently, Mark Cuban’s legal troubles aren’t over.

Right after learning that his suit with the SEC had been dropped, Mark Cuban has been sued by a company controlled by Ross Perot, Jr., claiming the Mavs owner wrongfully diverted millions of AAC-related profits to fund the Mavs.

To read the full story from The Dallas Morning News and get all the details, click here.

Lots of legal jargon and seemingly complex terms, so let’s sort it all out.

• Mark Cuban currently owns 76% of the Mavs, making him the majority owner. Perot, called a “very minority” owner by Cuban in an e-mail to The Dallas Morning News, does still own part of the team. Cuban said his biggest mistake was not completely buying out Perot’s interest of the team.
• The lawsuit: Perot’s company, Hillwood Center Partners, said Mark Cuban has used profits from a company he controls (Radical Arena, Ltd.) to help fund the Mavs.
• Perot’s company says the profits from that company should have been redistributed to the partners.
• Cuban owns 92.5% of Radical Arena while Hillwood owns the rest.
• Radical Arena owns around one-third of Center Operating Co., whose ownership is split evenly between Mark Cuban’s Mavs and Tom Hicks’ Stars.
• Hicks is not involved in any way.
• The complaint says Radical Arena’s loans to the Mavs total more than $29 million with an interest rate of 3.5% – a very low rate.
• Cuban guesses that the total amount of interest owed to Perot is somewhere in the neighborhood of $3 million.

So why is Perot lodging this complaint against Cuban? His company can only gain the 7.5% of the $29 mil + interest. The other 92.5%? It goes back to Cuban.

Cuban, in the DMN article, compared this lawsuit to Perot “trying to find nickels in the sofa cushion.”

Take that for whatever it’s worth, but I’ve got a feeling this lawsuit is going to fade away just as quickly as the last one did.

Cuban pic: http://weblogs.newsday.com/sports/watchdog/blog/2007/11/mark_cuban_dives_into_the_mixe.html

Marcin Gortat vs. 15 Big White Stiffs — Overcoming Mavericks Mediocrity

***UPDATE*** According to the Orlando Sentinel’s Josh Robbins, the Magic will match the Mavericks’ offer for Marcin Gortat. Great. Looks like we got Otis-ed, with the quite aptly named Magic GM Otis Smith making Brandon Bass AND Gortat disappear from beneath Mark Cuban’s nose like a puff of smoke. Ah well. At least we still have The List.

Brandon Bass was recently snatched up by the Orlando Magic by way of free-agency. So that sucks. There goes the only player on the team that played with any sort of intensity (read: cajones). The good news: looks as if that makes way for Marcin Gortat to be playing his home games at the AAC next season. Though Orlando still has until later this week to match the $5.854 million offer sheet that the Mavs have given to the Polish Hammer, it’s unlikely that will happen considering that the Magic are already over the league’s luxury tax. Any offer will likely cost them twice of what Dallas would end up paying.

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Dallas Sports Offseason Update

Still no Pacman for the Cowboys, still no losses for the Longhorns

Distractions, distractions. The US Open odds aren’t offering anything thanks to the rain, and Dallas sports fans probably want to get their minds off the Rangers with the injuries piling up, so it’s time to focus on the offseason for other Dallas teams.

The Dallas Cowboys

There’s a new wildcat in town. Last week, Patrick Crayton was taking snaps in the Cowboys’ version of the wildcat, the “Razorback.” Now, it’s Tashard Choice. He proved he can handle starting halfback duties as an injury replacement but is buried behind Marion Barber and Felix Jones on the depth chart, so the Cowboys are seeking a way to get him involved.

With cornerback Anthony Henry gone, the pressure is mounting for Jerry Jones to bring back Adam “Pacman” Jones to help the secondary. As of last week, however, Jerry Jones still denies that the Cowboys have any plans to re-sign him.

The Dallas Mavericks

No major news to report here, unless you’re excited to learn that Mark Cuban was named the MVP of the Reebok Heroes Celebrity Baseball Game after hitting a tiebreaking two-run double to lead his team to victory.

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Mark Cuban Comments on Buying the Cubs

Dallas Mavericks owner Mark Cuban is thought of by many to be a big spender. It comes as no surprise then that in 2007, Cuban put up his hand to buy the struggling Chicago Cubs franchise. Now basically out of the running, Cuban recently explained his attitude towards buying the Chicago Cubs on his blog, blogmaverick.com.

First the backstory…

Mark Cuban is no stranger to MLB, as he has previously stated his interest in owning an MLB franchise. He expressed interest in the Pittsburgh Pirates franchise, but never made any substantial moves. In 2007 however, Cuban put his hand up in the race to purchase the Chicago Cubs after the sale of the franchise to Sam Zell. In July, Cuban sent an application to MLB. In October of that year, Cuban stated that he would more than likely make a bid on the Cubs, which he did in July of 2008, when Cuban made an offer on the Cubs of $1.3 billion. Mark Cuban was later taken out of the running when he was indicted on insider trading charges.

In January 2009, Cuban explained his reasoning behind the move for the Cubs on his blog. Cuban explained that his goal was not to outspend major contenders such as the Boston Red Sox or New York Yankees, but rather make the Cubs a leading National League team while keeping them in the second tier of payroll spending. This would have allowed him to invest in scouting and the Chicago Cubs farm system. Cuban sought to create a winning team while establishing a solid infrastructure for developing talent within the franchise.

Cuban explains that the economic crisis was a major hindrance to his purchase of the team. With a number of franchises struggling during the recession, it is no surprise that Mark Cuban, or any other owner or potential owner would rethink any major investment. Nevertheless, Cuban has asked for an extension on consideration for his bid, in hopes that he can still become a part of the Chicago Cubs franchise.

Professional sports is ultimately a business, and the reality is owners, much to the frustration of fans, often care more about the bottom line than fielding a competitive team. However, Mark Cuban is not merely an owner, but also a fan. Cuban has reinvigorated the Mavericks organization and built a competitive team. This has led to an increased fan base and a larger source of revenue for Cuban and the Mavericks.

Ultimately, a figure like Cuban is good for sports. Don’t get me wrong, I hate it when Cuban gets vocal regarding games or refs. In some cases he is an obnoxious fan with too much money. However, Cuban puts that money to good use and it has proven especially beneficial to the NBA.

Imagine having a vocal owner in MLB who cared about fielding a competitive team. Cuban is a lightning rod for publicity and would greatly enhance the competitive atmosphere in Chicago and in the National League. It is a certainty that an owner like Cuban would create more publicity for MLB and help to grow a large fan base, which would in turn drive revenue through ticket sales and merchandise sales. More importantly however, the quality of the game would be improved with more competitive teams developing talent in house. It is possible that big spenders such as Steinbrenner with the Yankees would no longer have such a dominance over the league, and more Cinderella stories would rise to the top.

Ultimately, the recent history of MLB is one of steroids, controversy, and owner greed. The integrity of the game has been called into question repeatedly, and fans are tuning out in increasing numbers. The league needs a boost of energy to regain it’s status as the pinnacle of American sport. Perhaps Mark Cuban is just the shot in the arm needed to revitalize MLB and get fans back in the seats.