Rangers to auction despite higher offer
July 30, 2010
FORT WORTH, Texas (AP)—A bankruptcy judge Friday rejected a last-minutehigher bid on the Texas Rangers from Major League Baseball’s preferred buyer, adeal that would have canceled next week’s auction.
Since U.S. Bankruptcy Judge D. Michael Lynn said Wednesday’s auction willproceed as planned, the higher bid from a group led by Hall of Fame pitcherNolan Ryan and Pittsburgh attorney Chuck Greenberg is now off the table. Thatmeans the starting bid at the auction will still be $306.7 million, which is thecash portion of Greenberg-Ryan’s $575 million bid.
The court-appointed restructuring officer, William Snyder, had asked thejudge to forgo an auction. He said the Greenberg-Ryan group had substantiallyincreased its offer and removed “stinky” side deals that creditors saidbenefitted team owner Tom Hicks.
The new bid was filed under seal, but an attorney for the team, RonitBerkovich, indicated in court that it was $40 million higher.
Lynn said Friday that he did not believe creditors’ claims that Snyder wastrying to make “an end run” to sell the team to Greenberg-Ryan’s group, whichwas chosen as the buyer after the team’s original bidding process last year.
Creditors who have blocked that deal, saying the group’s bid was not thehighest, urged the judge Friday to proceed with the auction.
Lynn made his decision after lawyers for Dallas Mavericks owner Mark Cubanand Houston businessman Jim Crane said their clients were preparing to bid atthe auction.
Cuban is reviewing documents, but the auction date and bidding proceduresare not a problem for him, said his lawyer, Clifton Jessup.
Now, the initial Greenberg-Ryan bid—which includes legal costs and damagesif Hicks is sued after the sale, an office building lease and $9 million inadviser fees—will be submitted at the auction. The Greenberg-Ryan group hasbeen under fire from creditors because those items were transferred to theRangers from Hicks’ other companies that are not part of the bankruptcy case.
The bid also includes the Rangers Ballpark lease, which JP Morgan Chase, acreditor, is trying to sever from the team’s sale. The judge will not decidethat issue until next year.
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