Tom Hicks spent months trying to push through a sale of the Texas Rangers over the strong objections of his bank lenders, who believed that the proposed deal substantially undervalued the team. The result was a nasty, brutish (though relatively short) slog through chapter 11 for Texas Rangers Baseball Partners.
Now, Liverpool Football Club, also substantially owned by Hicks, and also saddled with huge debt, is being sold. This time, the outcry regarding undervaluation is coming from Hicks himself. An interim board chairman recently installed at the behest of the Club’s lenders has reached a tentative deal to sell the Club to John Henry and New England Sports Ventures, the owners of the Boston Red Sox. The sale to NESV would leave Hicks on the hook for hundreds of millions of indebtedness incurred when he acquired the Club, and so he has gone to court in England to try and block the transaction.
The Rangers’ bank lenders should be enjoying a good laugh at about this time.