Rangers Could Lose Josh Hamilton After Season
Josh Hamilton is having a good year. Good enough to be in contention for American League MVP and a possible Triple Crown. But those honors could come at a price, Rangers president Nolan Ryan told the court yesterday, because Hamilton’s contract expires at the end of the season and they’ll only make him even more valuable – and the Rangers, as it stands now, can’t afford to pay him more, the Dallas Morning News reports today.
The other part of this story? Judge Michael Lynn basically told Ryan that if the Rangers had petitioned the court, he could’ve ordered the MLB (who is keeping the franchise up and running with millions in loans) to provide more funding to help preserve the value of the Rangers and keep the franchise competitive.
Would the MLB have agreed to that? I’m not so sure.
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7 comments
“Would the MLB have agreed to that? I’m not so sure.”
That’s the whole point of a court order, MLB doesn’t get to say no. That said, I’m not sure the bankruptcy court actually had the authority to force another loan by MLB.
MLB has played this thing wrong from the very beginning by trying to flex its muscle to pick the next owner. Not only does that make the judge upset (bankruptcy judges decide who buys property out of a bankruptcy estate based on what provides the greatest value to the creditors), but it also tells creditors that they need to add a “MLB premium” to the interest on every teams’ debt because MLB will unilaterally devalue teams in bankruptcy to try and force a sale to its chosen buyer. That’s poor legal strategy and bad for business.
So, if this doesn’t get resolved come playoff time and the Rangers make the entire Metroplex wet their pants by winning the World Series, would Bud Selig just hand the Commissioner’s trophy to himself?
Brandon, you’re not allowed to say the “m” word.
…because Hamilton’s contract expires at the end of the season…
Not true. Hamilton is what’s known in baseball circles as “arbitration eligible” after the season, meaning he’s due a fat raise based on his performance.
Sam, actually, his contract does expire at the end of the season.
Hamilton is arbitration eligible, yes, but it wouldn’t matter unless his contract is expiring, which it is.
If the arbitrator were to award Hamilton a big raise, the Rangers could find themselves where they’re forced into cutting Hamilton rather than pay him the new salary.
And JoeBlow, the owner of MLB’s choosing pretty much happens to also be the owner that actually provides the most value for the club. If MLB doesn’t approve the owner, the Texas Rangers could cease to be a MLB franchise. If that were to happen, their value would drop to near zero. Being part of MLB is what makes them valuable, and they retain that value only so long as the rest of the league wants them there. No one is crazy enough to bid a half billion dollars on the Rangers without making it conditional upon MLB approval, which means MLB approval has to be a major consideration for the bankruptcy court.
Actually, I’d like to correct myself. One of the conditions for being “arbitration eligible” is actually that your contract has expired. So you can’t be arbitration eligible unless your contract has expired.
My bad, Bethany (and thefncrow). I suppose technically his contract is expiring, but who really thinks of it that way? I mean, he’s under club control and therefore can’t bolt for anywhere else. Essentially, he’s under contract for a yet-to-be determined amount. Nolan’s nuts to suggest the Rangers can’t afford Josh next year. Vladdy comes off the books. So does Oliver. Not that I want either of those two to go either, but they can make sure he stays.
Anyone willing to put some coin on the Rangers non-tendering Hamilton next year?