Baseball: Bankruptcy on Base?

It's a new year and "bankruptcy" has been a hot topic in the game of baseball during 2011 and now 2012... According to an article published by Amazin' Avenue, sources say the Mets have hired CRG Partners — the same turnaround consultants that handled the Rangers' bankruptcy sale — and that a team sale with or without bankruptcy is on the table.

The Mets have confirmed the hiring, stating that they have "engaged CRG Partners to provide services in connection with financial reporting and budgeting processes."

The article further states that "Hiring turnaround consultants doesn't necessarily mean that the team is specifically preparing for bankruptcy and a sale — consultants like these are brought in to figure out how a struggling business can become profitable — but it further underscores the Mets' moribund financial situation. Also, a turnaround company typically gets only a modest fee if it comes in and merely makes recommendations; it has a considerable economic incentive to push for a huge sale when a sizable commission is in the offing".

Several sports-sites infer that Mets fans would actually be EXCITED about the prospect of bankruptcy, considering how well the Rangers' situation turned out following their filing of bankruptcy.

 The Amazin' Avenue article also examines what may be at jeopardy if the team indeed does file bankruptcy,  "Every bankruptcy sale has three parties: the ownership group that is in debt, the creditors, and the buyers. If this process is indeed in the Mets' future, it could be a long and difficult one with no shortage of delays and acrimony to come. William Snyder, the CRG consultant who led the Rangers' bankruptcy sale, made many enemies along the way — including new Rangers owner Chuck Greenberg, who said that he'd "met some duplicitous people in my life, but [Snyder] set a new standard." But part of the reason that the sale worked was because the bidding process upped the price and brought in more money for the team's creditors".

Whether you are excited about the possibility of new ownership and a fresh start for the Mets or upset about all the teams who seem to be "in over their head"... one fact remains, there is light at the end of the tunnel for the Mets. This team in a large market with a new stadium and regional sports network will have plenty of wealthy bidders lining up to the "base" hoping for their chance to "hit a home run" and take over ownership of this team.
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Posted in baseball bankruptcy , mets bankruptcy , new york mets , rangers bankruptcy

1.2 Billion Dollar Offer for LA Dodgers

Frank McCourt has been offered $1.2 billion to sell the Los Angeles Dodgers to a group backed by Chinese government-owned investment banks, a person familiar with the situation told The Associated Press on Thursday.

The bid to buy the team out of bankruptcy, which was first reported by the Los Angeles Times, was being headed by Los Angeles Marathon founder Bill Burke, said the person who requested anonymity because he was not authorized to discuss it publicly.

The bid terms, put forth in a letter sent to McCourt this week, call for an all-cash payment to buy the Dodgers, all real estate related to the team and the team's media rights. The offer is roughly $800 million more than what McCourt paid for the Dodgers in 2004 at more than $430 million.

The letter, which was presented on behalf of the Burke group by Signal Capital Management of New York, said funding for the bid would come from "certain state-owned investment institutions of the People's Republic of China" as well as unidentified American investors, the newspaper reported.

The bid would expire in 21 days, according to the letter, with the goal of closing a deal within 90 days, subject to the approvals of the bankruptcy court and Major League Baseball.

Burke and a McCourt spokesman, Steve Sugerman, did not return calls from the AP seeking comment.

The proposed sale price would break a record for a Major League Baseball team that had been set two years ago when the Ricketts family paid $845 million to buy the Chicago Cubs from Tribune Co. The participation of overseas investors in the team's ownership would not be unprecedented, with the Seattle Mariners' ownership group including a significant Japanese presence.

Dodgers third baseman Casey Blake is having season-ending surgery to repair a pinched nerve in his neck.

Yankees-Red Sox: A.J. Burnett kept the New York Yankees close, Russell Martin put them ahead with a two-run double, and Mariano Rivera nailed down a satisfying victory over host Boston.

The Yankees trailed 2-1 when Burnett left, then scored three times in the seventh off Alfredo Aceves (9-2) in a tense game that took 4 hours, 21 minutes.

The Yankees moved within a half-game of the first-place Red Sox in the A.L. East by winning two of three in the series.

"I just had a feeling tonight he was going to get it done," New York manager Joe Girardi said of Burnett, "and he did."

Mets: The Mets said that the sale of a stake in the club to hedge fund manager David Einhorn for $200 million has fallen through, denying the flagging franchise the money needed to repay a loan from Major League Baseball and bolster its operating capital.

Marlins: Injured Florida star Hanley Ramirez has left shoulder instability, and the shortstop is contemplating offseason surgery.

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Posted in baseball bankruptcy , LA Dodgers bankruptcy