The impact of Tom Hicks’ financial struggles
First the details: As first reported yesterday by rangerfans.com, “Inside Pitch,” a daily show which airs on SIRIUS XM Radio at 2 p.m., fielded a caller which said that the Rangers were forced to borrow $15 million in order to make payroll for the most recent pay period. Evan Grant of InsideCorner quickly jumped on the story, along with Maury Brown at The Biz of Baseball.
The situation now: A club source said the Rangers did pay their employees for the most recent pay period and Hicks remains in control of the team. The team still reportedly has the financial flexibility to sign international free agents and draft picks. This info is from Evan Grant, and it can be found here.
Hicks has also had problems with his other two teams, Liverpool FC and your Dallas Stars. So what does it mean? In the short term, it means that there’s no real chance that the Rangers will be able to make a major move in order to improve their team. The Rangers are the team on the market right now, but as Bob Sturm (of Ticket and InsideCorner fame) points out here, Hicks is simply selling the Rangers because they are the team that will get him the highest return.
In the long term, these struggles will have a much larger effect. Obviously on the surface, it’s tough that Hicks is having financial difficulty in the midst of one of the best seasons in Rangers history. With no monetary problems, the Rangers could be players in the trade market to add a piece that could make them serious World Series contenders very soon. But it’s not really the end of the world – the Rangers are still developing quite a bit of young talent.
However, this could be real bad news for the future of the franchise. (Not to mention for the Stars as well, although their problems aren’t quite as impending because of the NHL’s salary cap). I don’t want to be the doomsday prophet, because in no way do I think this is going to happen, but if these struggles continue…we could be looking at an MLB-controlled franchise. Which, judging by the fortunes of the Expos, is not something ANYONE wants to see around here, especially in the 5th largest media market in the country.
I have no data to support this possibility – it is only my own personal fear. But if whether this information about the Rangers struggling to make payroll is true or not, Hicks is obviously struggling. Evan Grant said in his post that there is a scenario set up for the Rangers to borrow from the MLB fund if they need to make payments. While this does not mean that MLB would automatically control the franchise, it would probably mean the end of any chance of the Rangers going above slot to sign draft picks Matt Purke or Tanner Scheppers.
Here’s my request to Tom Hicks: If you can’t pay the bills, either figure out how immediately or find someone who can. As much as you want to hang on to the Rangers, you will do them much more damage than you will if you sell right now.
Because you don’t want the Rangers to end up like the Expos, right?
Right?
*-Tom Hicks photo credit: lonestarball.com via The Associated Press
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One Response to “The impact of Tom Hicks’ financial struggles”
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