Court Documents Gives Rare Glimpse Into Finances of Texas Rangers.
UPDATE: Response by Jamey Newberg added.
According to court documents filed today in the Texas Rangers voluntary bankruptcy case, the club is is in danger of seeing gross income lower this year than last, and may not meet last year's totals, an increase from 2008. The documents are a rare glimpse into the finances of a Major League club.
According the Statement of Financial Affairs for the Rangers, the club had $54,933,861 in gross income as of 5/31/10. Last year, the club saw $167,367,982 in total gross income, compared to $149,461,715 for 2008.
The document also gives a rare glimpse into how much front office personnel make, including current owner, Tom Hicks. Hicks is shown to have made $183,594 in salary from 6/15/09 - 5/24/10 with expenses of $14,452. However, Hicks Holding, LLC saw $64,737.85 in reimbursements for travel expenses and TOH Investors, LP, an entity directly or indirectly owned and controlled by Hicks saw $1,966,644.65 under an "A/R Factoring Agreement".
(SEE THE DOCUMENT, WHICH ALSO DETAILS EXPENSES (http://bizofbaseball.com/index.php?option=com_content&view=article&id=4486:statement-of-financial-affairs-texas-rangers&catid=81:texas-rangers-bankruptcy&Itemid=188))
And Hicks is not the only executive to see salary information released. From 5/29/09- 5/24/10 current president of the Rangers and prospective owner Nolan Ryan made $1,540,527 in salary with $85,750 in expenses. Kellie Fischer, the Rangers CFO made $235,081 in salary and bonuses with $1,284 in expenses from 5/29/09- 5/24/10.
In addition, the Rangers have racked up $801,721 in legal fees to five different law firms dealing with payments related to debt counseling or bankruptcy.
On top of the voluntary and involuntary bankruptcy cases, the Rangers are involved in 5 other suits or administrative proceedings, including a case by former Rangers scout Roney Calderon who is seeking $100,000 in severance pay.
The document has detailed ledger of expenses, ranging from New ERA cap, and Rawlings. But what may be of interest to media surrounds redacted sections of the ledger for expenses to Jamey Newberg of the popular The Newberg Report blog. From the Star-Telegram (http://www.star-telegram.com/2010/06/29/2302315/tom-hicks-draws-183k-salary-from.html):
Jamison "Jamey" Newberg, who operates a popular website, The Newberg Report, was paid $27,125 by the team from February through April, according to the court document filed late Monday.
Newberg said the payments likely were for books he sold the club. And while he received no money for his blog, the Rangers did finance his family's trip to spring training in Surprise, Ariz.
A lengthy 2004 Dallas Observer article described Newberg's blog as a must-read for fans and even baseball beat writers and team officials who, it said, were initially suspicious of Newberg.
There is no disclaimer on his blog site that Newberg has been paid for services to the Rangers. Near the end of the Observer piece, the weekly said: "Perhaps one day Newberg will finally get what he wants -- a shot at working for a big-league club."
Early on Weds. Newberg responded by saying (http://www.newbergreport.com/article.asp?articleid=1899):
I do provide content to the Rangers every week for their own website, and provide content to the Rangers every month for their gameday program, and provide thousands of abridged Bound Editions to the Rangers every year so they can give a copy to each of their season ticket accounts. For a few years I also wrote and recorded video packages every homestand for the Rangers to air on the video board between innings; we've shelved that project so far this season. I don't give those things away. I have been compensated by the Rangers for those things, and also get some of my spring training trip reimbursed -- that's a working week for me.
Is a Decision Pre-Ordained in the Texas Rangers Bankruptcy Case? (http://blogs.forbes.com/sportsmoney/2010/06/is-a-decision-pre-ordained-in-the-texas-rangers-bankruptcy-case/) (Forbes)
Texas Rangers File Amendment to "Prepacked Plan" to Address Judge's Concerns (http://bizofbaseball.com/index.php?option=com_content&view=article&id=4479:texas-rangers-file-amendment-to-qprepacked-planq-to-address-judges-concerns&catid=70:mlb-club-sales&Itemid=157)
Judge Agrees to Not Delay Hearing in Texas Rangers Case, But Chastises Greenberg/Ryan Group (http://bizofbaseball.com/index.php?option=com_content&view=article&id=4477:greenberg-ryan-group-seeks-to-prevent-further-delay-in-texas-rangers-case&catid=70:mlb-club-sales&Itemid=157)
Will the Texas Rangers Case Go Nuclear? (http://blogs.forbes.com/sportsmoney/2010/06/will-the-texas-rangers-case-go-nuclear/)(Forbes)
Brown: The Brilliance of the Texas Rangers Ruling (http://bizofbaseball.com/index.php?option=com_content&view=article&id=4473:brown-the-brilliance-of-the-texas-rangers-ruling&catid=26:editorials&Itemid=39)
Key Creditors in Texas Rangers Bankruptcy Case Issue Statement on Tuesday's Ruling (http://bizofbaseball.com/index.php?option=com_content&view=article&id=4471:key-creditors-in-texas-rangers-bankruptcy-case-issue-staement-on-tuesdays-ruling&catid=70:mlb-club-sales&Itemid=157)
Greenberg/Ryan Group Issues Statement on Bankruptcy Texas Rangers Ruling (http://bizofbaseball.com/index.php?option=com_content&view=article&id=4470:greenbergryan-group-issues-statement-on-bankruptcy-ruling&catid=70:mlb-club-sales&Itemid=157)
Upon Further Review, Texas Rangers Bankruptcy "Plan" Could Move Forward Shortly (http://bizofbaseball.com/index.php?option=com_content&view=article&id=4469:upon-further-review-texas-rangers-bankruptcy-qplanq-could-move-forward-shortly&catid=70:mlb-club-sales&Itemid=157)
Judge's Ruling in Texas Rangers Bankruptcy Case Could Pave Way for Lenders to Block Sale (http://bizofbaseball.com/index.php?option=com_content&view=article&id=4468:judges-ruling-in-texas-ranger-bankruptcy-case-could-pave-way-for-lenders-to-block-sale&catid=70:mlb-club-sales&Itemid=157)
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|Publication:||The Biz of Baseball|
|Date:||Jun 29, 2010|
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