Rangers/Stars Owner Tom Hicks: “We Want The Banks To Be Reasonable”

Posted on April 3rd, 2009 10:10am by Evan Grant
Filed under Bullpen, Dallas Stars, Sports business, Texas Rangers

Rangers/Stars owner Tom Hicks said he is asking bank lenders “to be reasonable” regarding the interest payment on more than $500 million in loans relating to the two clubs and the assets of Hicks Sports Group.

Before we go any further, we should probably explain to our British friends that Liverpool Football Club is not among the HSG holdings and neither are any of Hicks’ other business interests.

An interest payment was due on March 31, but Hicks said Friday that HSG had elected not to make the payment. HSG is in the process of trying to negotiate with the 40 lenders to allow it to make the interest payment out of the interest reserve provision. Hicks must get approval from the banks that hold 51 percent of the loans to approve such a deal.

The banks, however, could place the loans in default early next week if a re-negotiation in terms is not reached.

“We’re optimistic that a satisfactory resolution will come together in the next couple of weeks with our lenders’ cooperation,” Hicks said by phone Friday morning. “The important thing is that none of this impacts either team or the fan experience at either venue. We’re prepared to fund the operations of both clubs for the next 12 months while we continue to seek additional investors.”

Hicks announced last week that he was seeking to sell up to 49 percent of both the Rangers and Stars. Such a sale could add between $400-500 million in cash to the HSG reserves.

A financial website, citing unnamed sources, reported Friday morning that Hicks defaulted on a $350 million bank term loan, $100 million second-lien loan and a $75 million revolving credit facility.

“We just would like the banks to be reasonable and hope they will go along with our proposal,” Hicks said. “We’ve built two great teams, one with a great future and one that has been the most profitable and successful NHL franchise in the southern United States. We’ve built a great arena that is Dallas’ version of Carnegie Hall and Madison Square Garden all rolled into one. This is a short-term issue about a lot of long-term value.”

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40 Comments to “Rangers/Stars Owner Tom Hicks: “We Want The Banks To Be Reasonable””
  • Dallas Blog, Daily News, Dallas Politics, Opinion, and Commentary FrontBurner Blog D Magazine » Blog Archive » Rangers/Stars Owner Tom Hicks: “We Want The Banks To Be Reasonable” @ April 3rd, 2009 at 10:18 am

    [...] $500 million relating to his two sports teams. For the news and Hicks’ exclusive comments, go here. Leave a [...]

  • Sports Fan @ April 3rd, 2009 at 10:36 am

    I wonder if he has a mortgage on his $30+ million estate (doubtful), wonder if he is willing to take out a mortgage to help with his problems (doubtful), wonder if the banks who will make concessions to help him out are the banks we’ve all helped bailout (definitely), and wonder if this means in some contorted way we, the taxpayers, are getting a raw deal (I prefer another term) by Mr. Hicks’ actions? You made a deal with the banks and you have the means to fix it without concessions, so just do it!

  • Neal @ April 3rd, 2009 at 10:53 am

    “A financial website, citing unnamed sources, reported Friday morning that Hicks defaulted on a $350 million bank term loan, $100 million second-lien loan and a $75 million revolving credit facility.”

    Link?

  • Amy S @ April 3rd, 2009 at 10:56 am

    Interest reserve, hmmmmm. Seems like that would be for a rainy day. Surely the banks can see it’s pouring outside. None of the other options are really in the banks’ best interests.

    Now if we could just get the State of Texas to see that NOW is the time to use the huge tax reserve they are sitting on.

    Am I alone in thinking it’s crazy that these politicians are sitting on a pile of our money? I want mine back, in some form or another before it gets blown on something completely crazy.

  • Chris @ April 3rd, 2009 at 11:11 am

    “We’re prepared to fund the operations of both clubs for the next 12 months”

    ummmm…. this does not make me good about the direction of the Rangers.

  • poorboy @ April 3rd, 2009 at 11:13 am

    so they are basically bankrupt just like the rest of us? does this mean higher ticked prices?

  • DWC @ April 3rd, 2009 at 11:26 am

    Dear God,

    Please, oh please, let the foreclosures rain down on these franchises. We are in need of new ownership, even if that new ownership has to show up on the courthouse steps and buy the teams there.

    And, if possible, world peace. But mostly, please let the foreclosure happen. And soon.

  • Derek @ April 3rd, 2009 at 11:54 am

    Hopefully this means the Rangers will have a new owner. This is probably the loan Hicks had to take out in order to get A-rod. Dumbest ownwer in baseball, period.

  • DerekS @ April 3rd, 2009 at 11:56 am

    Apparently the website Evan is referring to is this one: http://www.finalternatives.com/node/7478

  • JustSaying @ April 3rd, 2009 at 12:02 pm

    MLB has ownership rules…..wonder when that kicks in to force a sale?

  • Rangers/Stars Owner Tom Hicks: “We Want The Banks To Be Reasonable” | Design | Tech | Culture @ April 3rd, 2009 at 12:03 pm

    [...] Rangers/Stars owner Tom Hicks has elected not to make the interest payment on a loan of more than $500 million relating to his two sports teams. For the news and Hicks’ exclusive comments, go here. [...]

  • matt @ April 3rd, 2009 at 12:10 pm

    The banks want you to be reasonable too. And make your payments.

  • boomer1 @ April 3rd, 2009 at 12:20 pm

    David McDavid would be first in line I bet to buy the Rangers.

  • JustSaying @ April 3rd, 2009 at 12:20 pm

    How far behind does Hicks have to get before MLB forces a sale? Mark Cuban are you licking your chops ready to swoop down…..

  • Brett in SD @ April 3rd, 2009 at 12:27 pm

    Let’s see:
    1) I borrow a total of $1,000,000 from three different banks to buy and maintain an apartment complex;
    2) I intend to rent the apartment units and use the rent payments to pay down the loan;
    3) My tenants can’t afford to pay as much rent due to the economy;
    4) Because my tenants aren’t paying me as much, I can’t afford to make the interest payments on the loan;
    5) I want the banks to be “reasonable.”

  • Jon @ April 3rd, 2009 at 12:27 pm

    OK here is my plan; er prayer.

    First. Win the next Mega Millions Lottery.

    Second. The banks foreclose on Hicks.

    Third. Buy the Rangers from the banks.

  • Anfield Road » Report: Hicks’ US Sports Group defaults on loans @ April 3rd, 2009 at 12:29 pm

    [...] 10:10am local time (4:10pm UK time) on the blog site of “D Magazine”. Headlined “We Want The Banks To Be Reasonable” the report started out by referring to Liverpool [...]

  • JustSaying @ April 3rd, 2009 at 12:31 pm

    Does this mean the Ballpark will change its’ name to AIG Park?

  • boomer1 @ April 3rd, 2009 at 12:46 pm

    Jon if that happens I will be your real estate agent.

  • HockeyFan @ April 3rd, 2009 at 12:47 pm

    Typical Hicks – “one [team] with a great future” and nothing about the other one’s future, except it’s worth money in the south.

    Moron owner.

  • Brandon B @ April 3rd, 2009 at 1:01 pm

    What a loser. Now we see why Hicks is looking for other investors. It’s because he was about to default on his loan. What a tool. I wonder what fool is going to invest in his group now.

  • Jim D @ April 3rd, 2009 at 1:17 pm

    As a lifelong Liverpool supporter I am in total sympathy with you guys. These clubs/franchises are our life, not a commodity to be traded and put in debt without any regard for the heritage they represent. It is not Tom Hicks who owns us it is the supporters who go to sleep every night dreaming of winning.
    It is the people who for years in good times and bad turn up and support the cause. It is the little guys who go without to afford the entry fees or cost of replica shirts. OK. this guy has got caught in the wrong place at the wrong time with debts he cannot afford. However, there is an alternative. He must get out of Liverpool even if he does not make any millions of dollars from it. Find a buyer who can deliver on their promises and leave us to our dreams. You’ll never walk alone!

  • Bloggerheads @ April 3rd, 2009 at 2:53 pm

    If you are interested in playing fantasy baseball against other who post on here then go to the following web address. The password is: dmn

    http://baseball.fantasysports.yahoo.com/league/dmnbloggerheads

  • Jon @ April 3rd, 2009 at 2:53 pm

    Does everyone find it incredibly galling that a guy who is suppose to be a billionaire wants banks “to be reasonable. I

    The sense of self-entitlement is just totally off the charts.

    What a tool all us fans have for an owner.

    Please let the banks foreclose.

  • Park Lane – Sports Finance Bulletin » Rangers/Stars Owner Tom Hicks: “We Want The Banks To Be Reasonable” @ April 3rd, 2009 at 2:57 pm

    [...] An interest payment was due on March 31, but Hicks said Friday that HSG had elected not to make the payment. HSG is in the process of trying to negotiate with the 40 lenders to allow it to make the interest payment out of the interest reserve provision. Hicks must get approval from the banks that hold 51 percent of the loans to approve such a deal. (D Magazine 4/3) [...]

  • J A @ April 3rd, 2009 at 6:05 pm

    I have no sympathy for this jerk. He’s insulted Rangers fans year in and year out. He spends like an idiot, then is frugal like Donald Sterling. He came out two years ago and said if more fans would show up, maybe he’d spend more money on the team. Meanwhile he puts the dumbest man in professional sports in as the Rangers GM and tells us to like it.

    Get lost, Mr. Hicks, you’ve outlived your welcome in this town.

  • Bloggerheads @ April 3rd, 2009 at 7:48 pm

    If you are interested in playing fantasy baseball against other who post on here then go to the following web address. The password is: dmn

    http://baseball.fantasysports.yahoo.com/league/dmnbloggerheads

    If you have trouble with the link the Yahoo league ID is:

    296006

    The password is:

    dmn

  • Raoul Duke @ April 3rd, 2009 at 8:52 pm

    Jim D, I share your love of sports, however, that comment has to rank as one of the most hopelessly naive I’ve ever read. Professional sport always has been and always will be about the making of money.

  • Dallasite @ April 3rd, 2009 at 9:53 pm

    You know what they say: If you owe me $100 then you have a problem. If you owe me $500 million for two losing sports franchises, then I am farking screwed.

  • rhyviens @ April 4th, 2009 at 1:03 am

    Cool blog! I just stumbled on it and now I’m a dedicated reader. If you have free time you might want to check out sports shops.

  • No Fan @ April 4th, 2009 at 3:25 am

    Hicks has never cared about either team — just money. When he bought the Stars, he bragged it was a real estate deal not a sports deal. As a result, Dallas has a new stadium, largely subsidized by taxpayers.

    I wonder how his $400 million+ “blank check” hedge fund is really doing. It’s only fitting that Dubya will throw out the first pitch on Monday. Maybe it’s time for Tom Hicks to “catch” instead of pitching with OPM.

  • Mark @ April 4th, 2009 at 9:56 am

    If Tom Hicks bought the Rangers for 285 million and the Stars for 85 million what did he spend the other 155 million on? After 10 years he hasn’t paid down any principle?

  • Jeff @ April 4th, 2009 at 2:09 pm

    Leverage, leverage, leverage. It works so well in the fat years, but it bites you bad in the lean ones, eh Mr. Hicks?

  • Ned @ April 6th, 2009 at 3:18 am

    I absolutely despise Tom Hicks, and I speak from two perspectives. He is a sorry s.o.b. one-on-one and towards the public.

  • ed @ April 6th, 2009 at 12:49 pm

    So I guess Hicks would have no problem if Josh Hamilton and Hank Blalock decided not to play today and said “Let’s be reasonable.”

  • Liverpool Financial Trouble? | Soccerati @ April 6th, 2009 at 1:03 pm

    [...] in fine and dandy standing. But everywhere else — with his American sports holdings — Hicks is navigating through what can only be a prickly financial field. Posted by Danieldinho on April 6, 2009 at 1:02 [...]

  • Dallas Blog, Daily News, Dallas Politics, Opinion, and Commentary FrontBurner Blog D Magazine » Blog Archive » Wall Street Journal Looks at Tom Hicks’ Finances @ April 14th, 2009 at 9:49 am

    [...] isn’t really news. Tom Hicks first spoke to our own Evan Grant about why he was defaulting on some of his loans. But seeing it all laid out in the WSJ (sub only) [...]

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