Nolan Ryan’s Winning Pitch Brings Texas Rangers Out Of Bankruptcy

Last Thursday, the Texas Rangers’ petition to exit Chapter 11 federal bankruptcy protection was approved by the court, effectively ending one of the most controversial sales of a professional sports team.

Eight hours after Hall of Fame pitcher Nolan Ryan’s team beat Dallas Mavericks owner Mark Cuban to the plate in a marathon bidding war early Thursday morning, the official court hearing about the Texas Ranger’s proposed reorganization began.

The reorganization plan, which was approved later that day by U.S. Bankruptcy Judge Stacey Jernigan, included the sale as a key factor in the team’s survival and made possible the approval of Ryan, who is also the Rangers’ president, as well as sports attorney Chuck Greenberg as the team’s new owners.

Both the sale and the Chapter 11 reorganization plan of the Texas Rangers had been at risk ever since the initial bankruptcy filing last May. Despite the fact that Ryan’s group had been chosen after the original sale in January, angry creditors petitioned to reopen bids for the team.

Fortunately, for the Rangers, the new plan was approved. If this hadn’t happened, the team would not have exited bankruptcy and the Greenberg-Ryan financial guarantee would have expired next week. The Greenberg-Ryan group finally secured the team with a winning bid of $590 million, which is an increase of $100 over its starting bid.

Cuban, and Houston businessman Jim Crane, came in with a final bid valued at $581 million. About $17 million was discounted due to deductions, as well as between $10 million and $13 that would have been owed to Greenberg-Ryan in breakup fees if they had not won the bidding war. Former Rangers’ owner Tom Hicks was quoted as saying that the Greenberg-Ryan team will be “Superb stewards. You have to admire their endurance, dedication and commitment over the last 15 months to get this transaction complete.”

 

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