Monday, May 24, 2010
What does Rangers sale mean for Stars?
By Richard Durrett
Stars owner Tom Hicks said Monday that the Rangers' decision to file for Chapter 11 bankruptcy won't impact the Stars. Why? Because the Stars are still a part of Hicks Sports Group and it's only the Rangers that is filing for bankruptcy.
Asked if it would effect the Stars' sale, president Jeff Cogen said: "No. They're being sold as seperate entities."
Cogen said the Stars sale is "ongoing," but declined to get into any specific timetables.
The Stars sale is still in the early going as HSG, with help from an outside firm, identifies potential buyers. One group is funded by William "Billy" Quinn, a managing partner in Irving-based Natural Gas Partners, with former Stars president Jim Lites and Mike Modano also involved. Lites would end up running the daily operations of the club if the group is successful in its bid.
So what could happen now? A few things to remember:
* The same creditors that were unhappy with parts of the Rangers' sale loaned money to HSG, so they are creditors of the Stars too and will want as much money as they can get out of the deal. It will be interesting to see how much pressure they attempt to exert during the process.
* The Stars deal would also include 50 percent of American Airlines Center, which certainly adds to the value.
* MLB has had to help float the Rangers some money, which has certainly motivated MLB to see this process come to a speedy conclusion. If the NHL ends up in a similar boat, they'll want things figured out quickly too.
So stay tuned.