Russel Jay Eserjose Finance 441 Research Paper Texas Rangers Power or Collapse House? In the Major League of Baseball, there is a blue and white team from Arlington, Texas, known as the Texas Rangers. In 2009, although the team had a substantial amount of talent on the field, they also had serious financial problems. The team has always been grossly undercapitalized. They depended on capital joint connections and loans to help pay for their bills. These problems lead to one of the biggest demonstrations of the economic crisis through the world of sports. At the time, the owner of their franchise was Tom hicks who owned Hicks Sports Group (HSG). Hicks was known for the founding of the private equity firm Hicks Muse Tate and Furst. He made his fortune on leveraged buyouts. Hicks also owned several other franchises such as the Dallas Stars, the Frisco Roughriders, a half of Liverpool F.C., and the Mesquite Championship Rodeo, but some were owned through different entities. In April of 2009, HSG headed toward the default on more than $500 million in loans. Later on that month, HSG was unable to make its interest payment on $525 million in syndicated bank loans. Once this was announced, lenders were bringing a forbearance to the conversation. Since 2005, the Rangers started seeing a downfall in cash flows and Hick’s hedge funds that were putting him into debt didn’t help. Later on in the month of April, Hicks publicized his will of selling only a minor part of the team.
represent to San Antonio.” (excerpt from press release by owner Jerry Jones on new contract.)
The book Moneyball by Michael Lewis is about a former major league baseball player who became the manager of the Oakland A’s. It tells the story of how he led the team to success despite their low budget by using computer based analytics to draft players. With the help of Bill James, the Oakland A’s came up with a new plan based on statistics to draft players. He went after players nobody wanted due to their low budget and his new plan. Billy led the Oakland Athletics to a successive win seasons by changing the way he measured players. He abandoned the traditional 5 “tool” the other scouts used and adopted empirical analytics. The abandonment of the traditional assessment of
The Vital Baseball organization was founded in early 2015 in the northern part of the state of Utah. The strategic plan of the founding managers was to build an organization that supports youth baseball at every age level. “First and foremost, strategic planning is a process” (Abraham, 2012, p. 1.7). This process is not to be taken lightly and the Vital
Teams with large payrolls routinely win at a higher rate than teams who cannot afford to spend the massive amounts of money other teams do. For example, in the last fifteen years the New York Yankees and Los Angeles Dodgers, two teams which regularly are among the highest spending teams in baseball, won on average 94.7 and 86.8 games respectively. By comparison, the San Diego Padres and the Kansas City Royals, two teams who are not able to compete financially with teams with deeper pockets, won an average of 77.1 and 71.6 games respectively in that same time span (Major League Baseball). This disparity in season wins is a direct cause of Major League Baseball’s lack of a salary cap. Over the course of a 162 game season, teams with higher payrolls, and therefore better talent on their roster, will prevail more often than
Nelson. "Is Baseball Recession-Proof?" Research in Business and Economics Journal 8 (2013): 1-10.ProQuest. Web. 2 Dec. 2015. The growth and popularity of baseball has been a constant since its beginning. The idea that baseball is "recession-proof" is not a new and unique concept. Consistently game attendance, consumption of Major League Baseball-related products, and ticket sales have all increased yearly. The journal states that "local economic variables generally do not have a statistically significant influence on attendance", therefore cementing the authors' point that baseball is seemingly recession-proof. The authors ran multiple experiments on several different models, all which resulted in consistent findings, economies may lag, and recessions come and go, but baseball remains untouched by economic downfall. Upon closing the article, the authors ponder a new and coming problem, stagnant income growth, coupled with the increase in demand for tickets may drive up price to a point where purchase for the average attendee may become too expensive, which would in turn would break the recession-proof nature of
Yankee Stadium was said to have profited hundreds of thousands of dollars a year just by renting out the stadium to the Negro Leagues. Shadow-Ball further illustrates the substantial differences in funding between the MLB, and the Negro Leagues. Because they Negro Leagues didn't have the money to buy supplies such as baseballs in some instances, they created Shadow-Ball. In this process, the "players would actually practice hitting the ball and catching a ball that wasn't actually there. In fact, they would go full practices without even having a ball, which further enhanced their discipline and focus." (Conrads, pg. 6) but in some instances, when they couldn't play in Major League ballparks, they were simply left to play on the dilapidated fields various areas - wherever they could find a field. Other than this, the players in the Negro Leagues did not make as much money as their counterparts who played in the MLB. For example, in Jackie Robinson's case, he "signed his contract with the Dodgers…for the Major League minimum salary: $5,000…for the year." (Rampersad, pg. 167) Furthermore, in general, "Negro leaguers made about a quarter of what their counterparts in the major leagues were making," but they kept their spirits alive, obliterated the negative energy, and kept playing the sport they loved…baseball. (Conrads, pg. 2)
In Major League Baseball’s 1919 World Series two teams that were the Chicago White Sox and Cincinnati Reds went up against each other. They played only a eight game series because the Cincinnati Reds already had won five games after the eighth game was over which didn’t require them to go to the ninth game. Many people found it hard to believe that the Reds actually one the World Series because the White Sox were favored to win. The bookies made the odds seven to five favored on the Chicago White Sox to win. Believe it or not the Chicago White Sox actually let the Cincinnati Reds win the series because they were payed a significant amount of money to throw the game. This famous Scandal was known as The Black Sox Scandal. The media reacted very suddenly to this scandal, the people were very shocked when they got word of it, and the aftermath of this Scandal cause many problems in baseball and society.
“Baseball’s Darkest Hour” or “The Black Sox Scandal of 1919” all names given to the 1919 World Series when eight players of the Chicago White Sox took money from gamblers to throw the World Series to the Cincinnati Reds. Gamblers have been involved in baseball since the start of it. There were even multiple stories of the gambles fixing games so the outcome is in their favor but no one ever tried to fix a World Series until 1919. Even though the gamblers were fixing games no one ever did anything about it. In 1920 the newly elected commissioner decided that the eight players that were on trial for throwing the World Series for knowing about the fix, participating in the fix and organizing the fix. People agree with the commissioner about banning
Every year, it becomes more obvious that many sports in America have problems. For years, Hockey has been criticized for its excessive violence. The National Football League has also been scrutinized for this reason as well as the fact that many of the top players have constantly been in trouble with the law. Major League Baseball is no different. The situation with baseball is more complicated, and is not only ruining the game itself, but also drawing millions of fans away from the sport. The biggest problem is with the high salaries paid to athletes. These salaries are taking the competitiveness out of several sports, especially baseball, where there is no salary cap. Action must be taken
The Texas Rangers franchise was awarded to Washington D.C. on October 26, 1960. The Washington franchise was approved by American League on November 17, 1960. The Texas Rangers colors are red, white, and blue. During the 1820s owner Robert Short renamed the team to the Rangers after the Texas law enforcement agency that was formed under Stephen F. Austin. The Texas Rangers played in the World Series two times. The first time they played the San Francisco Giants in 2010 and lost 4-1. The second time they played the St. Louis Cardinals in 2011 and lost 4-3. Ted Williams was the Rangers first manager, he stepped down at the end of the year because he could not bear the continuous losing of a 54-100 first season. Tom Hicks sent shock waves through
Just because a team has the money to go out and pay the high price free agents, does that mean that they are going to be successful? Not necessarily, as the Baltimore Orioles have shown, they have one of the higher team payrolls in the majors but they are at the bottom of their division. So maybe it is what you do with the money that matters. And in the Minnesota Twin's case this year, who are a small-market team, they got the best out of their relatively unknown players. But the thing that eventually hurt them was their inability to go out and get a key player before the trading deadline.
One of the biggest events that really sparked the start of the new interest of baseball was the building of the new New York Yankee stadium. By the outside being painted, light towers being placed in the outfield, a two story concession stand being built, and corporate boxes being put in, the Yankee’s manager, Leland “Larry” MacPhail, was really setting the stage as to what baseball and baseball parks would turn
In Major League Baseball the general belief is that the more a team spends on their payroll the more games they will win. With the absence of a salary cap baseball may seam unfair to the smaller market teams who can't bare the salary costs that the larger market teams can. In Michael Lewis' Moneyball: The Art of Winning an Unfair Game Lewis depicts just how the Oakland Athletics have been winning in an unfair game for almost a decade. The A's are a small market team that doesn't have nearly the amount of money at their disposal that their competitors in the American League do. However this past season the A's won their fourth American League West championship in the last seven years while having the lowest payroll in their division. In
The city of Springfield, Massachusetts were blessed with the basing of a baseball minor league franchise in their city. But the class A team is faced with great revenue generation challenges that will make or mar the organization. The new team might likely take advantage of the fact that closest sports franchised teams are all located 90 miles away from Springfield. This might create a ticket and concession boom for the team and other benefits like employment and taxes for the city. The city has a considerable moderate family income and a recent growth index in the healthcare, financial, and other small and medium enterprise sectors is an advantage
Texas Rangers can bring more revenue to the group if they reach the American Championship Series and