Texas Rangers Make Layoffs To Business, Administrative Staff

Posted on June 15th, 2009 5:07pm by Evan Grant
Filed under Front Office, Rangers notes

The difficult economy and uncertainty about future ownership pushed the Texas Rangers on Monday to lay off “less than 10 percent” of the 275-person front office, club spokesman John Blake confirmed.

Blake said the club reached the difficult decision to make layoffs in season after reviewing several factors, including the economy and positioning the club for sale. Owner Tom Hicks, who in March opted not to make an interest-only payment on a loan of $500 million to his sports group, has been actively seeking investors to join him. Hicks has also said he would be willing to part with his majority stake in the club in order to get a deal done. The Rangers have been valued at approximately $500 million recently.

The timing of the move may seem odd given that the Rangers last week picked up the 2010 option in manager Ron Washington’s contract last week and then selected two players in the first 44 picks of the amateur draft who are expected to demand bonuses well above Major League Baseball’s recommended “slots.” Blake said, however, that in light of the economic environment, the club has been looking for ways to cut costs without diminishing the product on the field or the fan experience.

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20 Comments to “Texas Rangers Make Layoffs To Business, Administrative Staff”
  • gordosan @ June 15th, 2009 at 5:15 pm

    Cutting the scouting and developmental part of the office seems penny wise and dollar dumb. We will spend more on Purke’s bonus that 30 scouts make in three years.

  • samags @ June 15th, 2009 at 5:58 pm

    To gordosan’s comment, what type of employees were laid off? Scouts, consultants, office workers?

  • becca @ June 15th, 2009 at 6:05 pm

    i’m assuming that Captain wasn’t affected in this RIF?

  • Daniel @ June 15th, 2009 at 6:18 pm

    Tom Hicks fail.

    I’m seriously looking forward to a new owner that actually has, you know, money.

  • gordosan @ June 15th, 2009 at 7:12 pm

    Samags has posited a good question, one which we probably won’t ever know.

  • Rangers Cut Staff : baseballmusings.com @ June 15th, 2009 at 7:26 pm

    [...] The Texas Rangers reduced their staff today by about 10%: Blake said the club reached the difficult decision to make layoffs in season after reviewing several factors, including the economy and positioning the club for sale. Owner Tom Hicks, who in March opted not to make an interest-only payment on a loan of $500 million to his sports group, has been actively seeking investors to join him. Hicks has also said he would be willing to part with his majority stake in the club in order to get a deal done. The Rangers have been valued at approximately $500 million recently. [...]

  • Rangers Cut Staff @ June 15th, 2009 at 7:51 pm

    [...] The Texas Rangers reduced their staff today by about 10%: Blake said the club reached the difficult decision to make layoffs in season after reviewing several factors, including the economy and positioning the club for sale. Owner Tom Hicks, who in March opted not to make an interest-only payment on a loan of $500 million to his sports group, has been actively seeking investors to join him. Hicks has also said he would be willing to part with his majority stake in the club in order to get a deal done. The Rangers have been valued at approximately $500 million recently. [...]

  • Lie, Lie, Lie @ June 15th, 2009 at 9:48 pm

    “Tom Hicks bought the Rangers for $250M in 1998.
    Forbes magazine valued the club at $405M in April, 2009.”

    Opening Day payrolls for 25-man roster
    (salaries plus pro-rated signing bonuses):

    2009: $ 68,178,798
    2008: $ 67,712,326
    2007: $ 68,318,675
    2006: $ 68,228,662
    2005: $ 55,849,000
    2004: $ 55,050,417
    2003: $103,491,667
    2002: $105,726,122
    2001: $ 47,735,167
    2000: $ 70,900,000
    ———————————————

    If Forbes valued the Rangers at $405M 2 months ago how did they go up in value to “approx $500M” in 2 months?

    That’s a 25% gain in only 60 days. It sounds like Hicks is trying to sucker in some minority partners.

    What is your source for this “approx $500M”, Evan? Hicks himself?

    Link Please.

  • Lie, Lie, Lie @ June 15th, 2009 at 10:04 pm

    http://mlbcontracts.blogspot.com/2005/01/texas-rangers.html
    ———————————————
    btw – here’s my link, Evan. Cot’s Baseball Contracts. Are you going to quote us a Ranger press release?

    That sounds about right…

  • emm bee @ June 15th, 2009 at 10:09 pm

    yes…might seem something akin to wasting dollars by chasing dimes.

    wonder what the eighth day lead will be tho

    stay tuned

  • Evan @ June 15th, 2009 at 10:55 pm

    evan, please try and drop some weight.. you’re setting a poor example for america’s children by going on TV with your monstrous girth.

  • Evan Grant @ June 15th, 2009 at 10:57 pm

    @Lie, Lie: (Which by the way was the name of my favorite Chinese restaurant during those awkward early tween years in Sunrise, Fla. – another chapter of my life) Yes, the Forbes valuations listed the Rangers at $405 million. But that valuation also listed San Diego as being worth $401 million. The Padres are in the process now, though, of being sold to a group headed by former agent Jeff Moorad for $500 million. My guideline on worth of a franchise is not necessarily what Forbes values it at, but what one goes for on the open market. In this case, it appears the going rate for a mid-market club is about $500 million. But it wouldn’t surprise me if the Rangers end up being sold for less than that – maybe in the $450 range.

  • Evan Grant @ June 15th, 2009 at 10:59 pm

    @Samags: Out of consideration to the employees, I’m not going to name any names, but the info I was given indicated administrative and business positions. Scouts and instructors qualify more as on-field personnel. To my knowledge no scouts or instructors were among the layoffs. Nevertheless, that’s not to minimize the jobs very good people did in other areas.

  • The Ghost of Greg Harris @ June 15th, 2009 at 11:00 pm

    @ Evan @ June 15th, 2009 at 10:55 pm

    thank you for joining me on this righteous crusade

  • 74DaysOfHicksDefault @ June 15th, 2009 at 11:16 pm

    $500 million loan with an expected sales price now in the $450 range……..looks like somebody is under water but they would give up control if necessary…..please is this going to end up on the courthouse steps? Which courthouse Evan? Quick somebody call the ?????? Phones dead, sorry….

  • TomHicks(Verified) @ June 15th, 2009 at 11:20 pm

    hey ghost give me a call tomorrow cause i have some personnel work for you……..

  • David @ June 15th, 2009 at 11:53 pm

    I guess that means I won’t get that second interview

  • TD @ June 16th, 2009 at 1:04 am

    Keep up the good work, Evan.

    The Hicks hating is beyond stupid from many at this point.

    He has spent a ton of money to try to win with the Rangers, a franchise that has NEVER won. And now he has hired the people that have put the Rangers in a better spot than they’ve ever been.

  • Tom @ June 16th, 2009 at 9:33 am

    The same folks who are slamming Hicks will be in line for playoff tickets when this team wins the West.
    Bunch of front-running bandwagoners.

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