Texas Rangers borrowed 10-15 Million from MLB

[19braves77]

The Rangers were the 1st MLB to take MLB's loan due to a negative cashflow for the month of June. MLB is offering all clubs loans like the NBA did last year that doesn't have to be paid back. Only one club from the NBA asked for it ( New Orleans Hornets ) Sure, it doesn't sound like a big deal but you better bet MLB is going to use this kinda of stuff in the next bargaining agreement and it does give them them a say so for the rest of the year in what a team can do moneywise and when a owner should back up.

I guess this is why the Yankees were worried about $400,000 that Hiske was going to cost them.

 

[trevordchi]

They don't have to pay it back? How is it a loan if they don't have to pay it back?

 

[JEA2880]

They don't have to pay it back? How is it a loan if they don't have to pay it back?

Yeah, I'd love a loan like that!

 

[mburgin]

They don't have to pay it back? How is it a loan if they don't have to pay it back?

if they give the money away, it can't be claimed for a loss however if it is a loan it can be written off and taken directly off the bottom line.

 

[WJCIII]

If I understand it correctly, any team that borrows money from MLB can't add payroll during the season. That means the Rangers can't add a big bat or anything if they stay in the playoff hunt.

 

[19braves77]

Also, a team is subject to signing all draft picks at the recommended slot amount.

 

[jlecates]

It should be noted that Tom Hicks' holding company that owns the Rangers and the Dallas Stars defaulted on several loans totaling I believe around $500 million several months ago as well. Obviously the economic climate has hit MLB, but this could also be an isolated incident of poor management at the top.