Billionaires are special people. They’re smart too. You don’t become a billionaire by being stupid with money, which makes me wonder what Tom Hicks has up his sleeve. In case you haven’t heard, as part of an effort to renegotiate what it said is $515 million in loans related to the Texas Rangers and Dallas Stars, Tom Hicks’ HSG did not make a quarterly interest-only payment that was due Tuesday.
The Dallas billionaire said he has been in talks with lenders, not to ask for additional funding for the teams, but to restructure the debt or to possibly pay it off if he finds investors willing to buy minority stakes in either team.
“We’re doing this to get everybody’s attention so they’ll make a decision and cooperate with us,” Hicks said in an interview Friday. “This is really between me and the banks and the lenders to HSG.”
Hicks announced this week that he wants to sell up to 49 percent of each team to limited partners, allowing him to retain majority control of both franchises. Hicks said he owns 95 percent of both teams and anticipates owning 51 to 60 percent when the process ends.
Here’s my question: Why would anyone want to buy into a minority interest in a group that just missed making a payment on it’s debt to the banks? Not only that, a minority interest? Here Tom, take my money and you keep doing what you are doing. Right.
Here’s another question that came to mind as I read this story. If Mark Cuban wanted to get in to baseball, and if he shares the AA Center with Tom Hicks and the Stars, wouldn’t that be the first person Hicks would call to solicit an ownership buddy? What would Cuban tell him? Go butt a stump? Or would Mark be seriously interested in owning part of the Rangers? Do billionaires go through financial pains like us regular folks do? Apparantly, Tom Hicks thinks so.
Tom Hicks’ sports group misses interest payment (Star Telegram)