He's Really Happier Than He Looks
In short, nothing, but it adds to the drama surrounding the Reds possible sale.
Tom Hicks got out of the baseball business this week, when his bankrupt Texas Rangers were sold to a group led by Nolan Ryan in bankruptcy court.
In the wake of multiple bids for Liverpool, the question has to be how the Rangers sale might affect LFC going forward.
The one thing that came out of the Rangers sale is that the debt is gone. Under U.S. bankruptcy laws, the money owed creditors will either be paid (barely any of it) or will be discharged (most of it). The new owners will assume some debt, as well.
This actually is good for Liverpool. There’s no connection between the businesses now. The pile of debt that Hicks and Gillett created to buy the club is all that needs to go away. The fact that Kenny Huang is focusing on the creditors and not the owners is a good sign for the club’s supporters, too.
One thing is clear, Hicks is tired of the sports business. The Dallas Stars are also on the selling block.
In the end, the Rangers sale is the first move in the chain of events that will end Liverpool supporters’ long nightmare.
That and the Europa League should make for happy times in Scouser-ville. Sorry. Couldn’t resist.
I’m not sure it means that he is getting out of the sports business. He basically racked up debt (at least 100mm) against the his group that owned the Rangers/Stars, when he bought Liverpool.
Doesn’t all this really mean is that Hicks is willing to pile up debt into a sports team, until the debt gets so out of control it goes bankrupt, and even then he’d rather it go into bankruptcy than sell the team outright?
Wouldn’t this really just add fear that Liverpool might fall into some sort of administration before Hicks loses control over the team?
@ TSE: read a baseball article yesterday that mentioned the creditors allowed the auction of the Rangers to go through b/c they would receive $75M from the Rangers org. direct but could THEN go after Hicks direct for the remaining debt in the neighborhood of $525 M once the winner of the auction was approved by MLB. The gist seemed to be that the Rangers organization was protected by the bankruptcy laws but not Hicks once there was a new owner of Rangers. If that’s the case, hope he’s got a hotline to Beijing.
“In short, nothing.”
No need to read, then!
@knocsucow
Funnily enough, RBS could call in administration whenever they want. They’re clearly tired of dealing with Hicks, hence all this potential buyer hubbub via the loans owed to their bank.
When the game went global, so did the financing. I find this fascinating.
As much glee as I get out of ribbing JT and other Scousers, it would be good to see ‘Pool liberated from these chumps. Bad owners aren’t good for anyone. Well, except for ManUre. Teehee.
Thanks, Anonsters. I hope it happens
@OM: They are allowed to go after other Hicks Sports Group (HSG) companies. LFC is not a HSG company. They cannot go after Kop Holdings or whatever the holding company name is.
@ TFA: That’s good for the Liverbirds then. I didn’t know it was a separate entity and was wondering if the Rangers’ sale would lead the creditors to Anfield chasing after Hicks’ empty pockets.
I need a holding company. Just for lulz.
@JT – The saving grace of this whole situation may be that RBS is more likely to work with a new buyer through them taking over the loans. Since they would be screwed, and/or have to chase money from Hicks after administration (if he even has any), they might be even more willing to sell the debt off since this would likely be there only chance to obtain full value in return for the money they lent.
Anon – would your holding company be called “Just for luluz” or “lulz” either is brilliant!
JFTL, LLC.
I always forget…whats JFTL again? I remember it’s John ___ Terry ____
Just For The Lulz.
F**k John Terry.
You’ll Never Go Bankrupt Alone’…..comming to an LFC crest near you!