It seems to us that the time has come to discuss the "reverse stadium curse." True, naming a stadium for its corporate sponsors has tended to have deleterious effects on those same sponsors, but soon we may have to consider the reverse effect.
The taint of Blagojevich, carried by the Illinois Sports Authority into the alleged extortion of the Tribune Company over the State's support for the Cubs / Wrigley Field deal is an easy example, and now the fate of the Texas Rangers might be another. It ain't over 'till the fat lady sings, but we can hear her warming up now.
Hicks Sports Group, which owns baseball's Texas Rangers and hockey's Dallas Stars, failed to make its interest payment on $525 million in syndicated bank loans on Monday. The group, which also owns a 50% stake in the English Premier League's Liverpool Football Club, is now in talks with its lenders about a forbearance.
Hicks made his billions on leveraged buyouts, founding private equity firm Hicks Muse Tate & Furst, now HM Capital, in 1989. He retired from the firm in 2006.
According to the source, who has seen documents relating to the loans, Hicks defaulted on a $350 million bank term loan, $100 million second-lien loan and a $75 million revolving credit facility. Efforts to contact Hicks Sports, the Rangers and Stars were not successful.
According to the source, the loans are secured by the Rangers and Stars, but not by Hicks' stake in Liverpool.
Tom Hicks' Sports Group Defaults On $525 Million In Loans [FINalternatives]