Rangers Declare Bankruptcy

[cruzg24]

Owning a baseball team isn't always a license to print money. Take the Texas Rangers, for example. Ten years after signing Alex Rodriguez to a then unheard of $252 million contract, the MLB franchise has filed for bankruptcy.

Now, it's probably not exactly fair to blame the team's financial failings on the current Yankees slugger. Still, USA Today explains that A-Rod is one of the team's largest unsecured creditors. He is currently owed nearly $25 million in compensation, six years after he was traded away.

So what does it mean to be an "unsecured creditor" at a time like this? Well, the New York Daily News explains that the bankruptcy could cost A-Rod $24,892,006.61 in deferred compensation. However, The Wall Street Journal writes that "the proposed $575 million sale would repay all the team’s creditors, including players owed back salary." A-Rod can apparently rest easy.

Some people hear the word "bankruptcy," and images of baseball players wearing barrels and catching pop flies for nickels come to mind. But the team will continue to function normally. Officials claim that the bankruptcy won't stop the team's efforts to win games. Currently, the Rangers are in first place in their division.

The Rangers bankruptcy, according to an article from the AP, is completely voluntary and has the support of MLB commissioner Bud Selig. The hope is that if the other big-league teams approve the move, it will clear the way for the team's sale to a group of investors led by former Rangers pitcher and all-time strikeout leader Nolan Ryan.

Even though this has all the makings of a relatively normal business deal, web lookups on "rangers bankruptcy" and "texas rangers bankrupt" both soared in the Search box. USA Today explains that this isn't the first time a big-league club has gone Chapter 11. The Chicago Cubs declared bankruptcy last year, and the Baltimore Orioles did likewise in 1993.

Source: Yahoo Buzz

 

[Blake]

Damn, that sucks for the Rangers.

 

[MR.ballin]

Holy sh!t. Pretty unfortunate. They should of never paid Arod that much money in the first place.

 

[footballplaya52]

thats sucks





oh and F*CK arod

 

[Gtown81]

damn, right when I was just starting to really like them

 

[RipCity32]

See if they are bankrupt I don't see how they would even think bout taking on Oswalt and his large contract.

 

[PlayOn]

will someone buy the team and try and move them?

 

[JoshHoward5]

will someone buy the team and try and move them?

They aren't losing money because of the location, but it's because they owner didn't have a clue what he was doing. Hicks ran this team to the ground...financially