Author Topic: Liverpool owner Hicks selling Texas Rangers shares  (Read 221413 times)

Offline riise6

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #400 on: April 7, 2009, 01:49:11 PM »
things are looking up thanks koppper and HL
"Liverpool is the most successful football club in English football history. It exists to win things for its supporters. It deserves to be in the hands of people who support it, who understand its history and legend and who share the enthusiasm and passion of its fans."DIC...
Ball's in your court now, G&H

Offline No666

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #401 on: April 7, 2009, 01:49:59 PM »
We're not worth $1 billion. We're only worth what someone will pay for us. Hope Mike Ozanian is reliable otherwise.

& Kopper, I give you full credit for actually beating Harry to the draw - though I particularly liked her red italics.

Offline riise6

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #402 on: April 7, 2009, 01:50:29 PM »
plus RBS are cutting 9000 jobs over the next 2years has to be something in that to call in the loans!!
"Liverpool is the most successful football club in English football history. It exists to win things for its supporters. It deserves to be in the hands of people who support it, who understand its history and legend and who share the enthusiasm and passion of its fans."DIC...
Ball's in your court now, G&H

Offline HarryLabrador

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #403 on: April 7, 2009, 02:06:59 PM »
plus RBS are cutting 9000 jobs over the next 2years has to be something in that to call in the loans!!

Yes, just heard that and half of those will be from Britain! I feel really sad for those honest workers who had nothing to do with the crisis.
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Offline HarryLabrador

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #404 on: April 7, 2009, 02:30:07 PM »
We're not worth $1 billion. We're only worth what someone will pay for us. Hope Mike Ozanian is reliable otherwise.

& Kopper, I give you full credit for actually beating Harry to the draw - though I particularly liked her red italics.

Mike Ozanian is the senior editor of Forbes magazine and also hosts several video interviews. Here is one you can watch. So, is he reliable? Don't know, other than the fact that what he says is not a million years away from what we think.

http://video.forbes.com/fvn/sportsmoney/soccer-battles-the-recession
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Offline No666

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #405 on: April 7, 2009, 02:55:42 PM »
Oh I'm sure he's credible, Harry - I think he was using journalistic short-hand in his valuation (rather than spelling out that it is Hicks who values LFC at $1bn) and I was being a bit facetious about that. I would have thought Forbes being so negative about Hicks will further alarm RBS. Wasn't there an ITK on here a few months ago telling us that Hicks was in just as much financial trouble as Gillett? (Have a feeling it might have been Shanks.) Looks like he's been vindicated.

Offline fry

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #406 on: April 7, 2009, 03:04:13 PM »
Oh I'm sure he's credible, Harry - I think he was using journalistic short-hand in his valuation (rather than spelling out that it is Hicks who values LFC at $1bn) and I was being a bit facetious about that. I would have thought Forbes being so negative about Hicks will further alarm RBS. Wasn't there an ITK on here a few months ago telling us that Hicks was in just as much financial trouble as Gillett? (Have a feeling it might have been Shanks.) Looks like he's been vindicated.

Im hoping hicks home is turned into a rumage sale in the next couple of months.  Will teach him a lesson for playing and taking risks with peoples money and dreams.
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Offline RedJam70

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #407 on: April 7, 2009, 04:31:29 PM »
Well we all knew it was going to happen but now it's official.


Quote
Tom Hicks' Sports Group defaults on loans

09:25 AM CDT on Tuesday, April 7, 2009
By GARY JACOBSON / The Dallas Morning News
gjacobson@dallasnews.com

Tom Hicks' sports holding company, Hicks Sports Group, which owns the Texas Rangers and the Dallas Stars, officially went into default Monday on $525 million of loans.

Hicks stopped making interest-only payments March 31 as he renegotiates the teams' debt with about 40 lenders.

The loan agreements mature in December 2010 and December 2011, according to lending data available on Bloomberg.

http://www.dallasnews.com/sharedcontent/dws/bus/stories/040709dnbushicksbrf.e50aac.html

Offline shelovesyou

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #408 on: April 7, 2009, 04:46:22 PM »
Well we all knew it was going to happen but now it's official.

40 lenders ?

Fuck me .

And the Interest Only payments ? he cant even make them .
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Offline 4pool

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #409 on: April 7, 2009, 04:49:07 PM »
Other tidbits of news.

Watched the local tv this morning getting ready for work.

The Texas Rangers won their season opening game 9-1 yesterday in front of a full house. I think I heard that is the first time they've won an opener in 5 years.

They also have switched to a Red kit for home away from the Blue they have worn for a few seasons. ( the team colours are Red/White/Blue)
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Offline The Flying Pig

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #410 on: April 7, 2009, 05:06:08 PM »
Other tidbits of news.

Watched the local tv this morning getting ready for work.

The Texas Rangers won their season opening game 9-1 yesterday in front of a full house. I think I heard that is the first time they've won an opener in 5 years.

They also have switched to a Red kit for home away from the Blue they have worn for a few seasons. ( the team colours are Red/White/Blue)

Well,I'm sure that will have come as a great relief to the banks holding their loans! ;D
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Offline ali

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #411 on: April 7, 2009, 05:35:10 PM »
Im hoping hicks home is turned into a rumage sale in the next couple of months.  Will teach him a lesson for playing and taking risks with peoples money and dreams.

I think you'll find it's in his wife's name, as was Gillett's when he first went bankrupt, also their Calfornia planning applications were always in his wife's name for their summer pad.


Tom Hicks is called a Billionaire Vulture on Forbes, along with a few others in a recent article.

for those of you watching in black and white Liverpool are the team with the ball

Offline west_london_red

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #412 on: April 7, 2009, 05:48:19 PM »
Other tidbits of news.

Watched the local tv this morning getting ready for work.

The Texas Rangers won their season opening game 9-1 yesterday in front of a full house. I think I heard that is the first time they've won an opener in 5 years.

They also have switched to a Red kit for home away from the Blue they have worn for a few seasons. ( the team colours are Red/White/Blue)

well thats all top of the list of priorities isnt it?

Offline jonnygeeart

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #413 on: April 7, 2009, 05:58:26 PM »
Other tidbits of news.

Watched the local tv this morning getting ready for work.

The Texas Rangers won their season opening game 9-1 yesterday in front of a full house. I think I heard that is the first time they've won an opener in 5 years.

They also have switched to a Red kit for home away from the Blue they have worn for a few seasons. ( the team colours are Red/White/Blue)

Hicks probably gave away a load of freebies again to get a full house to make it look good to potential investors,banks,tv companies and sponsors or anybody else he could con but lets hope the games up for that Sucker!

Offline rafathegaffa83

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #414 on: April 7, 2009, 05:58:31 PM »
Quote
STARS' OWNER DEFAULTS ON LOANS
DAVID SHOALTS

The Dallas Stars, once the success story of the NHL's sunbelt franchises, shocked the hockey world yesterday when they hit the same financial turbulence as the Phoenix Coyotes.

Even though Stars owner Tom Hicks went into default on $525-million (all currency U.S.) in loans, the NHL claims it is not worried about the future of the team. Hicks said there is no chance his sports teams - the Stars and baseball's Texas Rangers - will be taken over by creditors.

"We have no concerns about the Stars' ability to carry on," Bill Daly, the NHL's deputy commissioner, said in an e-mail.

A financial website, FINalternatives.com, reported yesterday that Hicks Sports Group defaulted on three loans. The company failed to make interest payments on a $350-million bank term loan, a $100-million second-lien loan and a $75-million revolving credit facility.

Hicks told a Dallas website, Dmagazine.com, that he is trying to renegotiate the interest terms on his loans, which involve 40 banks.

"We just would like the banks to be reasonable and hope they will go along with our proposal," Hicks said. "We're optimistic that a satisfactory resolution will come together in the next couple of weeks with our lenders' co-operation."

Hicks had said this week he is looking to sell as much as 46 per cent of his 95-per-cent interest in Hicks Sports Group.

He also owns the Liverpool Football Club of the English Premier League in a 50-50 partnership with Montreal Canadiens owner George Gillett, but that is held separately from Hicks Sports Group. Gillett is also in financial difficulty and exploring the possibility of selling the Canadiens and his share of the soccer team.

Hicks could not be reached for comment, but he told the Fort Worth Star-Telegram he will continue to pay for the operations of both the Stars and the Rangers.

"There is no possibility of banks owning the teams," Hicks said in an e-mail. "I am working closely with both leagues to find quality partners that share my long-term vision of building these two great franchises. I will continue to fund the teams' operations. I am the largest creditor to [Hicks Sports Group] and need 51 per cent of the banks to agree with my plan."

Daly said the NHL is not helping Hicks find new investors for the Stars.

FINalternatives.com quoted a source as saying Hicks's loans are partially secured by the Stars and Rangers but not the soccer team or his personal assets.

While NHL commissioner Gary Bettman has maintained the league is financially healthy despite the recession and much other evidence to the contrary, news that Hicks is in trouble was unexpected.

After he bought the Stars from Norman Green in December of 1995, the team embarked on a run of success that culminated in a Stanley Cup championship in 1999. The team regularly played in front of sold-out houses at Reunion Arena and the new American Airlines Center when it opened at the start of the 2001-02 season.

But the Stars' playoff performances declined in recent seasons and so did their attendance. They did make the Western Conference final last season, but they will likely miss the playoffs this season.
http://www.theglobeandmail.com/servlet/story/LAC.20090404.HICKS04ART21522/TPStory/?query=tom+hicks

I find the bolded sections of this article to be quite interesting. The NHL has in the past assisted troubled franchises to find investors in places such as Pittsburgh, Nashville and most recently Phoenix. The fact this was unexpected suggests Hicks' years of rampant overspending/overborrowing in the early part of the decade, combined with his position on the league's board of governors, has managed to fool the NHL into believing he was a model of robust financial health.

Offline JimmyF

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #415 on: April 7, 2009, 06:13:10 PM »
I
Hicks probably gave away a load of freebies again to get a full house to make it look good to potential investors,banks,tv companies and sponsors or anybody else he could con but lets hope the games up for that Sucker!
Full houses in the opening day of the baseball season are the norm, doesnt matter where. usually by the 2nd home game the attendance is back to the normal average level

Offline Liver Bird

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #416 on: April 7, 2009, 06:14:01 PM »
If you can't even keep up with your interest repayments then surely the game is up.
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Offline fry

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #417 on: April 7, 2009, 06:47:51 PM »
If you can't even keep up with your interest repayments then surely the game is up.
Thats what hicks creditors have to decide.  I have no idea about his teams in america and wether there is sufficent intrest in buying the teams for the creditors to force a sale.  Over here i beleive RBS should be comfortable calling in the loan knowing there is interest in LFC  especially at the value of the loan. 
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Offline No666

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #418 on: April 7, 2009, 07:45:41 PM »
Poster on TIA saying there is always a little window,  where a new buyer is invited to come forward, before the club is placed in administration and points are deducted. Anyone know how true that is?

Offline Sing A Song of Torres

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #419 on: April 7, 2009, 08:16:04 PM »
Gillett has a big advantage over Hicks when it comes to putting their respective hockey teams on the selling block. The Canadiens are an institution, with already a number of interested parties stepping up and expressing their willingness to buy the club if Gillett were to formally put it up for sale (the latest: http://www.cbc.ca/sports/hockey/story/2009/04/07/sp-canadiens-savard.html). The Stars, however, are in a weak hockey market (despite their success in the 90s) and will be much less attractive to buy, with a smaller, more localized fan base and reduced prospect of gate and merchandise profits. It sounds like Hicks has borrowed a lot of money to acquire properties on his own personal Monopoly board, strutting around proudly at the number of property cards he's managed to accumulate, without regard to the fact that none of the other players would bother to covet them or would consider buying them at the price he's slapped in the front window.

Ironically, unless Hicks has a bunch of get-out-of-jail-free cards stuffed up his sleeve, it may turn out to be the less wealthy Gillett who's in a stronger position with the banks.
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Offline RedJam70

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #420 on: April 8, 2009, 01:03:55 AM »
Gillett has a big advantage over Hicks when it comes to putting their respective hockey teams on the selling block. The Canadiens are an institution, with already a number of interested parties stepping up and expressing their willingness to buy the club if Gillett were to formally put it up for sale (the latest: http://www.cbc.ca/sports/hockey/story/2009/04/07/sp-canadiens-savard.html).

So it seems. More on that too.

 
Quote
MONTREAL ó The Montreal Canadiens and the Bell Centre are up for sale and 10 potential buyers have signed confidentiality agreements with the Bank of Montreal to get a look at the franchise's books, CBC-TV reported Tuesday.

The potential buyers identified by the public broadcaster include the province's pension-fund manager, the Caisse de depot et placement; Guy Laliberte, owner of Cirque du soleil; and Les Productions Feeling, which is run by Rene Angelil, husband and manager of pop superstar Celine Dion.

Others include the Claridge investment house; media giant Quebecor; Joey Saputo, owner of the Montreal Impact soccer team; Roustan Capital; the Molson family; Spectrum Equity; and the Aldo Group.

Potential buyers have been given until 5 p.m. on Thursday to make a bid, the network reported.

Former Montreal Canadiens general manager Serge Savard has also said he and a group of partners are prepared to buy the National Hockey League franchise if it is put up for sale.

Canadiens majority shareholder George Gillett is currently seeking advice from financial firms in Canada and elsewhere about how he might maximize his holdings, which also include parts of English soccer giant Liverpool, the Richard Petty Motorsports NASCAR team, and event promoter Gillett Entertainment Group.

http://www.theglobeandmail.com/servlet/story/RTGAM.20090407.wspthabs/GSStory/GlobeSportsHockey/home


Offline rafathegaffa83

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #421 on: April 8, 2009, 04:08:00 AM »
^

That's been on all the news channels here that any bidders for the Canadiens have little more than 48 hours to submit a bid. Apparently the Bell Centre, the Canadiens arena, would be included in any deal. Some people on Radio Canada, the Francophone arm of the Canadian Broadcasting Corporation, were suggesting any potential sale could be complete in less than seven weeks. The latter coupled with the fact that Gillett is giving such a short time in which to place a bid would suggest that our own relationship with Mr. Gillett will become clearer by the end of the season. It sounds like he's desperate to get out, when only a few weeks ago he was denying he wanted to part with anything

« Last Edit: April 8, 2009, 05:28:52 AM by rafathegaffa83 »

Offline No666

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #422 on: April 8, 2009, 08:17:07 AM »
Didn't he tell Parry and Moores that he has had enough - feels old and doesn't have the energy/money to take us forward? Perhaps he wants out of everything now but isn't about to be screwed over by Tom Hicks in the process.

Offline beejay

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #423 on: April 8, 2009, 09:48:18 AM »
^

That's been on all the news channels here that any bidders for the Canadiens have little more than 48 hours to submit a bid. Apparently the Bell Centre, the Canadiens arena, would be included in any deal. Some people on Radio Canada, the Francophone arm of the Canadian Broadcasting Corporation, were suggesting any potential sale could be complete in less than seven weeks. The latter coupled with the fact that Gillett is giving such a short time in which to place a bid would suggest that our own relationship with Mr. Gillett will become clearer by the end of the season. It sounds like he's desperate to get out, when only a few weeks ago he was denying he wanted to part with anything



The other way of looking at it is that he is disposing of his most saleable asset to raise sufficient cash to keep hold of LFC, having failed to sell his stake in us.

It does look as though he is ahead of Hicks who is also trying to raise cash in a hurry.


Offline Coady

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #424 on: April 8, 2009, 10:18:19 AM »
Why would they sell both assets in the States and here, surely selling assets in the States is to keep their grip on us.
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Offline HarryLabrador

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #425 on: April 8, 2009, 10:26:32 AM »
Why would they sell both assets in the States and here, surely selling assets in the States is to keep their grip on us.

My guess is they need to buy time. Clearly their most valuable asset is LFC. They can sell their assets across the pond because they are not jointly owned. These 2 are still about as disparate as they ever were. They will never be able to come to a joint decision over the sale of Liverpool until they are forced to.
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Offline fry

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #426 on: April 8, 2009, 10:47:46 AM »
My guess is they need to buy time. Clearly their most valuable asset is LFC. They can sell their assets across the pond because they are not jointly owned. These 2 are still about as disparate as they ever were. They will never be able to come to a joint decision over the sale of Liverpool until they are forced to.


Time is something they have very little of now.  The clock is ticking faster every day.   
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Offline RedJam70

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #427 on: April 8, 2009, 11:02:23 AM »
I'm sure I read somewhere that the Bell centre was the most lucrative asset Gillett owns. If that's the case I can't see him selling that unless it's absolutely necessary and would expect him to use the money to hold on to us. Either way it seems he's in a better place than Hicks right now.

Quote
Schnurman: Hicks is pressing, but banks may not want to play ball
By MITCHELL SCHNURMAN
mschnurman@star-telegram.com
 

It must be tough to be Mr. Leverage in a deleveraging world.

Last week, local sports mogul Tom Hicks made headlines by skipping interest payments on $525 million in debt, calling it a negotiating tactic. For most people, defaulting on a giant loan is the first step toward foreclosure or bankruptcy, not a way to play hardball with your lender.

But these are unusual times, and Hicks isnít your average Joe. Donít bet against him forcing an agreement in coming months, albeit with more cash and equity from his side. Banks have no interest in taking over the Texas Rangers or Dallas Stars, even if the leagues would allow it, and Hicks is already seeking minority investors to shore up his balance sheet.

Make no mistake, though: Hicks is fishing for a bailout, and heís already tried the usual suspects.

Hicks insists the dispute wonít affect operations for the Rangers or the Stars, but itís more bad news for development around the Rangers Ballpark in Arlington. Hicks has talked about building a grand, mixed-used project there since he bought the team in 1998, only to see each plan fade away.

The strongest effort yet, Glorypark, was put on the shelf a year ago after retailers got cold feet and lenders pulled their backing. (The banks called that one right; otherwise the prime Arlington site would be plagued with unfinished, unleased buildings, which is a lot worse than parking lots.)

If Hicks has to fight this hard to get banks to work with him on existing loans, thereís little chance of lining up new funds for another ambitious project ó even one between the ballpark and the new Dallas Cowboys stadium.

That will have to wait for more prosperous days.

Hicks has spent his career around banks and well-heeled investors, using borrowed money to buy and combine companies, then reaping millions by selling the final product or taking it public. In 16 years as chairman of Hicks Muse in Dallas, he raised $12 billion in private equity and made $50 billion in leveraged acquisitions of companies like AMFM, A&W Brands and Dr Pepper.

It must be in his nature to borrow. Hicks paid a combined $334 million for the Texas Rangers and Dallas Stars more than a decade ago, and in December 2006, he borrowed $525 million against those assets.

One note is due at the end of 2010, and four others mature in December 2011, so Hicks isnít under pressure to refinance to avoid a balloon note. What he wants, according to a statement released by Hicks Sports Group, is "full access to the interest reserve account and revolving credit line, as well as some amendments in the debt covenants."

Sounds innocuous, especially when Hicks said, "There is minimal risk to the banks."

Unfortunately, you canít check that out with the other side because privacy laws prevent banks from discussing their customersí accounts. So itís hard to know whether banks are balking because of the credit crisis or because Hicksí sports businesses are in trouble.

What is clear is that Hicks needs money ó from minority investors, from a reserve account, from a credit line.

In his statement, Hicks said, "The company is not asking for additional money," which sounds a lot like pro athletes in contract talks saying, "Itís not about the money."

Hicks may not be seeking a new loan, but he wants more credit, which means more money, and thatís hardly automatic.

"Banks are right to be more cautious, even if there wasnít a credit crisis," said Scott MacDonald, president and CEO of the Southwestern Graduate School of Banking Foundation at Southern Methodist University. "The economy has become the bigger issue, and more companies are having trouble servicing their debt. If demand falls, cash flow falls, and only a fool would extend more credit under those conditions."

If lenders expect revenue from the Rangers and Stars to decline during the recession, they may be refusing to loosen underwriting standards and open up Hicksí credit line. And whoís to argue? The global economic meltdown is largely a problem of extending too much credit to too many people who couldnít pay it off.

That has to frustrate Hicks, who turned leverage and debt management into an art form. But regular folks can relate. Many who consistently make monthly payments on their credit cards are getting hit with higher interest rates simply because banks perceive a heightened credit risk.

Consumers canít understand, because theyíre doing things as they always have. What changed is the rest of the world as the pendulum shifted from loose credit to tight.

Thousands of homeowners who could benefit from refinancing their mortgage are locked out of the market because the rules are tougher now. Their income may no longer qualify for the same level of debt, or the house doesnít appraise high enough.

In late 2006, when Hicks got his loans, everybody else could borrow, too. In his statement, Hicks points out that his sports groupís "financials are completely separate" from his other holdings. That includes a soccer team in Liverpool, two private-equity firms and separate interests for himself and his family.

That separation must be vital to others, who fret that their investments may get caught up with the Rangers and Stars. In effect, Hicks is saying, "Not to worry."

Why doesnít he put up some of those assets to satisfy the banks?

Maybe theyíre leveraged to the hilt, too.

http://www.star-telegram.com/arlington_news/story/1305375.html


Offline HarryLabrador

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #428 on: April 8, 2009, 11:04:35 AM »
Just been reading that article, RJ, and excellent analysis.
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Offline No666

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #429 on: April 8, 2009, 11:25:10 AM »
If he had more cash and equity to put up he wouldn't be in this situation in the first place. Tick, tock.

Offline Coady

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #430 on: April 8, 2009, 01:22:30 PM »
I cant see how this is good news, Hicks is up to something defaulting on his loan I'm sure, and them selling assets is so can hang on to us, is my fear.
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Offline Sing A Song of Torres

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #431 on: April 8, 2009, 01:55:18 PM »
I cant see how this is good news, Hicks is up to something defaulting on his loan I'm sure, and them selling assets is so can hang on to us, is my fear.

Even if this latest maneuver by Hicks with his 40 lenders grants him a bit more time to raise a bit more money (and possibly give him a bit more cash in his pocket come July), it surely has to spook RBS/Wachovia, even if he could provide moderately more cash security against the Liverpool loan. And the fact will still remain crystal clear to the banks that he's in no position to raise the cash to build the stadium anytime soon, a consequence that's only important to RBS as there'd be no real prospect of the club generating enough revenue to clear his debt to buy the club.

If the American banks have no appetite to foreclose on the Stars and the Rangers, the next step they take with this will be an interesting insight into what RBS/Wachovia might do if faced with the same recalcitrance when it comes to forcing his and Gillett's hand to sell Liverpool.
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Offline HarryLabrador

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #432 on: April 8, 2009, 02:04:16 PM »
Even if this latest maneuver by Hicks with his 40 lenders grants him a bit more time to raise a bit more money (and possibly give him a bit more cash in his pocket come July), it surely has to spook RBS/Wachovia, even if he could provide moderately more cash security against the Liverpool loan. And the fact will still remain crystal clear to the banks that he's in no position to raise the cash to build the stadium anytime soon, a consequence that's only important to RBS as there'd be no real prospect of the club generating enough revenue to clear his debt to buy the club.

If the American banks have no appetite to foreclose on the Stars and the Rangers, the next step they take with this will be an interesting insight into what RBS/Wachovia might do if faced with the same recalcitrance when it comes to forcing his and Gillett's hand to sell Liverpool.

Very good post.

J Molby, Hicks is not up to anything sinister because he defaulted on his loan. The fact is he is and always was cash poor. As has been printed in several articles, the days of the LBO king are well and truly over. Peter has got quite fedup constantly being robbed so Paul can be paid, so to speak.
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Offline 4pool

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #433 on: April 8, 2009, 02:09:15 PM »
I suppose it has escaped notice with George Gillett that the one sporting venture he hasn't put up for sale is his portion of the Nascar team he owns.

Could it be he is planning on investing more of his money there. As his family owns 30-40 car dealerships in the USA, which presumably are struggling due to the economy, and racing is his first passion.
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Offline west_london_red

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #434 on: April 8, 2009, 02:13:02 PM »
I suppose it has escaped notice with George Gillett that the one sporting venture he hasn't put up for sale is his portion of the Nascar team he owns.

Could it be he is planning on investing more of his money there. As his family owns 30-40 car dealerships in the USA, which presumably are struggling due to the economy, and racing is his first passion.

Maybe hes not selling his nascar team as its not worth anywhere near as much as the Canadiens? im assuming a nascar team is not worth as much.

Offline fry

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #435 on: April 8, 2009, 02:19:47 PM »
Maybe hes not selling his nascar team as its not worth anywhere near as much as the Canadiens? im assuming a nascar team is not worth as much.
Perhaps thats his retirement project. 
Disclaimer: The above post may not be based on facts even if stated as fact.

Offline rafathegaffa83

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #436 on: April 8, 2009, 02:20:53 PM »
Why would they sell both assets in the States and here, surely selling assets in the States is to keep their grip on us.

There is a key difference though in their main sports assets is that investors are actually interested in Gillett's Canadiens, unlike Hicks' Stars or Rangers. People are coming to Gillett desperate to buy the team, rather than the other way around. There are already at least ten groups willing to buy the Canadiens. It must be remembered that like Liverpool, the Montreal Canadiens are a team intrinsically linked with the soul and essence of a city and are a national icon.

 It is telling that the majority of the groups wanting to purchase the Canadiens off him are either headed by French-Canadian businessmen or have strong ties to the province of Quebec. Perhaps the failure to secure French-Canadian ownership of the team the previous time around has elicited something within the French-speaking business community. I also believe there are unfounded fears that Gillett may sell the team to someone who would move the team out of the province of Quebec. Would this happen? No. This is arguably the most profitable and most successful hockey team ever. People are going to want to relate and connect themselves with this organization.

The Canadiens are a massive cultural institution in the province of Quebec and have been for over a century. It also has to be noted that the Canadiens' 100 year anniversary celebrations have been marred by great disappointments, off-ice controversies and poor performances. Fans were expecting a marquee name to arrive, which failed. This isn't necessarily Gillett's fault due to the intricacies of the salary cap. But I  think that many Quebecois businessman are eager to put ownership of the team back into Francophone hands in order to secure its traditions and ensure they do not have an annus horribuilis like this ever again.

On the other hand, Hicks owns two franchises catering to niche audiences in a market that is not a hotbed for either sport. The Canadiens can round up nearly a dozen investors in less than a month, whereas Hicks has of yet failed to elicit any interest in either The Rangers or the Stars.

I wouldn't be surprised however, if Hicks tries to drum up interest from existing or former sports owners in the Dallas area such as the NBA's Dallas Mavericks' Mark Cuban, or the Cowboys' Jerry Jones (whom Hicks was sitting next to during Opening Day). According to the Fort Worth-Star Telegram he has already been seen dining with Dallas-area businessmen David McDavid (yes that is his name), a former minority owner in the Dallas Mavericks, who he hopes will have interest in becoming a minority owner in the Rangers.

Offline HarryLabrador

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #437 on: April 8, 2009, 02:20:56 PM »
I suppose it has escaped notice with George Gillett that the one sporting venture he hasn't put up for sale is his portion of the Nascar team he owns.

Could it be he is planning on investing more of his money there. As his family owns 30-40 car dealerships in the USA, which presumably are struggling due to the economy, and racing is his first passion.

Good point, 4pool. Afterall, motorcars, be it sales or racing is most probably more appealing to Gillett than any other sport. He is also approaching his dotage so he might as well enjoy his investment in something he truly loves.
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Offline 4pool

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #438 on: April 8, 2009, 02:46:42 PM »
Posted on Tue, Apr. 07, 2009

Schnurman: Hicks is pressing, but banks may not want to play ball
By MITCHELL SCHNURMAN
mschnurman@star-telegram.com


It must be tough to be Mr. Leverage in a deleveraging world.

Last week, local sports mogul Tom Hicks made headlines by skipping interest payments on $525 million in debt, calling it a negotiating tactic. For most people, defaulting on a giant loan is the first step toward foreclosure or bankruptcy, not a way to play hardball with your lender.

But these are unusual times, and Hicks isnít your average Joe. Donít bet against him forcing an agreement in coming months, albeit with more cash and equity from his side. Banks have no interest in taking over the Texas Rangers or Dallas Stars, even if the leagues would allow it, and Hicks is already seeking minority investors to shore up his balance sheet.

Make no mistake, though: Hicks is fishing for a bailout, and heís already tried the usual suspects.

Hicks insists the dispute wonít affect operations for the Rangers or the Stars, but itís more bad news for development around the Rangers Ballpark in Arlington. Hicks has talked about building a grand, mixed-used project there since he bought the team in 1998, only to see each plan fade away.

The strongest effort yet, Glorypark, was put on the shelf a year ago after retailers got cold feet and lenders pulled their backing. (The banks called that one right; otherwise the prime Arlington site would be plagued with unfinished, unleased buildings, which is a lot worse than parking lots.)

If Hicks has to fight this hard to get banks to work with him on existing loans, thereís little chance of lining up new funds for another ambitious project ó even one between the ballpark and the new Dallas Cowboys stadium.

That will have to wait for more prosperous days.

Hicks has spent his career around banks and well-heeled investors, using borrowed money to buy and combine companies, then reaping millions by selling the final product or taking it public. In 16 years as chairman of Hicks Muse in Dallas, he raised $12 billion in private equity and made $50 billion in leveraged acquisitions of companies like AMFM, A&W Brands and Dr Pepper.

It must be in his nature to borrow. Hicks paid a combined $334 million for the Texas Rangers and Dallas Stars more than a decade ago, and in December 2006, he borrowed $525 million against those assets.

One note is due at the end of 2010, and four others mature in December 2011, so Hicks isnít under pressure to refinance to avoid a balloon note. What he wants, according to a statement released by Hicks Sports Group, is "full access to the interest reserve account and revolving credit line, as well as some amendments in the debt covenants."

Sounds innocuous, especially when Hicks said, "There is minimal risk to the banks."

Unfortunately, you canít check that out with the other side because privacy laws prevent banks from discussing their customersí accounts. So itís hard to know whether banks are balking because of the credit crisis or because Hicksí sports businesses are in trouble.

What is clear is that Hicks needs money ó from minority investors, from a reserve account, from a credit line.

In his statement, Hicks said, "The company is not asking for additional money," which sounds a lot like pro athletes in contract talks saying, "Itís not about the money."

Hicks may not be seeking a new loan, but he wants more credit, which means more money, and thatís hardly automatic.

"Banks are right to be more cautious, even if there wasnít a credit crisis," said Scott MacDonald, president and CEO of the Southwestern Graduate School of Banking Foundation at Southern Methodist University. "The economy has become the bigger issue, and more companies are having trouble servicing their debt. If demand falls, cash flow falls, and only a fool would extend more credit under those conditions."

If lenders expect revenue from the Rangers and Stars to decline during the recession, they may be refusing to loosen underwriting standards and open up Hicksí credit line. And whoís to argue? The global economic meltdown is largely a problem of extending too much credit to too many people who couldnít pay it off.

That has to frustrate Hicks, who turned leverage and debt management into an art form. But regular folks can relate. Many who consistently make monthly payments on their credit cards are getting hit with higher interest rates simply because banks perceive a heightened credit risk.

Consumers canít understand, because theyíre doing things as they always have. What changed is the rest of the world as the pendulum shifted from loose credit to tight.

Thousands of homeowners who could benefit from refinancing their mortgage are locked out of the market because the rules are tougher now. Their income may no longer qualify for the same level of debt, or the house doesnít appraise high enough.

In late 2006, when Hicks got his loans, everybody else could borrow, too. In his statement, Hicks points out that his sports groupís "financials are completely separate" from his other holdings. That includes a soccer team in Liverpool, two private-equity firms and separate interests for himself and his family.

That separation must be vital to others, who fret that their investments may get caught up with the Rangers and Stars. In effect, Hicks is saying, "Not to worry."

Why doesnít he put up some of those assets to satisfy the banks?

Maybe theyíre leveraged to the hilt, too.

http://www.star-telegram.com/arlington_new...ry/1305375.html
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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #439 on: April 8, 2009, 02:58:42 PM »
the easiest way for me to grow as a person is to surround myself with people smarter than I am