Baseball and bankruptcy: Texas Rangers go belly-up while looking for new owner

The Texas Rangers filed for bankruptcy on Monday, making them the only current major league baseball franchise  seeking court protection from creditors.

The Chapter 11 filing was pre-planned, seemingly with the intention of clearing the way for a sale of the team to a new ownership group that includes former Ranger and Hall of Famer Nolan Ryan.

Among the top 30 unsecured creditors is Alex Rodriguez, who is owed $24.9 million in deferred compensation six years after he was traded to the New York Yankees.

A-Rod shouldn’t have too much to worry about, however, as compensation claims typically receive the highest payback priority in a bankruptcy case, and the Rangers have announced that they have received debtor-in-possession financing to keep the club afloat until the sale to Ryan and his partners can be finalized later in the summer.

Ryan and his partners said they do not think the bankruptcy case will keep the team from competing for top players in the trade market that runs through July 31st.

 

By Doug Beaton

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