Bankruptcy Threatens the Texas Rangers

The Texas Rangers have been troubled for the past sixteen months since their owners defaulted on over $500 million in debt racked up financing the team.  Now there are people bidding to buy the team, but many investors and lenders will lose a sizeable chunk of money before then.  In the meantime the ballclub’s major lenders are asking that a bankruptcy judge delay bidding to give the current owners more time to rustle up some cash to pay off their outstanding debts.

While the bankruptcy lawyers in Houston TX and Dallas have been going over this case, sports analysts are looking at how other teams are being affected by this news.  Financing and loans are being more restricted and given higher interest rates because of the newly discovered risks, but teams are still being sold at high prices.  The Golden State Warriors were recently sold for $450 million, showing that sports franchises are still highly valued and in demand.