Thursday, August 5, 2010

Rangers' Financial Woes

Does it surprise you that a baseball team that was once run by this man is now filing for bankruptcy?

Not only are the Texas Rangers in financial dire straits but this man couldn't even make money when he ran oil companies (Arbusto Energy and Spectrum 7 Energy Corp). It is obvious that he brought his "business sense" to his presidency. As president of the US he started two foreighn wars but neglected to come up with any reasonable way to pay for them. Our first MBA president ran our country the same way he ran his businesses, by increasing spending even though revenues were decreasing. The big difference here is that the decreased revenues for our government was his own making by cutting the taxes of the wealthy. This is old news.

The financial problems of the Texas Rangers are not new either. Some of the decisions that were made back in the 1990's are really hurting them now. A lot of the team's fans blame the current leadership of the franchise (sound familiar?) but a lot of it can be traced back to the 1990's.

For example, they are still paying Mickey Tettleton $1.4 million a year. Who is Tettleton? He is an average player that retired in 1997. Paying a player into their retirement isn't that odd. What is odd is that the Rangers gave him this contract in 1996 when he was 36 which pretty old for a baseball player. If he were a knuckleballer, it might make sense, but he's a catcher. Paying an aging catcher $1.4 million for the next 13 years ... what were you thinking? This is just poor business. Sounds like whoever made this decision might be stupid enough to give one of his golf buddies a job as head of FEMA!

I am not a big fan of the Texas Rangers, but they are one of those underdog teams that I do like to see win. Filing for Chapter 11 may make them more appealing to potential buyers (Nolan Ryan is one that I have heard). Their top unsecured debtors had to be made public. The top six are all players:

Alex Rodriguez – $24.8 million
Kevin Millwood – $12.9 million
Michael Young – $3.8 million
Vicente Padilla - $1.6 million
Mickey Tettleton – $1.4 million
Mark McLemore – $970K

The top four of these are current players, only one of which is currently on the Rangers (Young). The highest on the list, is New York Yankee Alex Rodriguez. ARod is suing to stop the bankruptcy. This might just be the only thing that Bush has ever do that makes me happy. ARod
could lose close to $25 million if it happens.

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