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May 26, 2010

Texas Rangers have filed for Chapter 11 bankruptcy

Texas Rangers' bankruptcy is cause to celebrate, or so they tell me

Woo-hoo -- the Rangers are bankrupt!

So sounded the cries of joy Monday when word came down that the Texas Rangers had filed for Chapter 11 bankruptcy.

According to my research on a few non-sports websites, a business can file for Chapter 11 bankruptcy when it is unable to service its debt or pay its creditors.

Doesn't sound like much of a reason to woo-hoo to me, but cue Kool & the Gang singing Celebration anyway, because the Rangers officially being unable to service debt and pay creditors seemed to set off a Metroplex-wide celebration.

I've mentioned previously that my college attempt to minor in business failed. Not that kind of failed, but close.

So I'm going to have to go with the flow here and just agree that the Rangers' bankruptcy is great news.

It's too bad, though, that this took place as the Rangers were embarking on a road trip that will keep them away from Arlington until June 4. Me and nine buddies could have gone to a game at the Ballpark with "CHAPTER 11!" painted on our chests and then, when Jim Knox interviewed us, we could have turned around to show "BANKRUPTCY" on our backs.

Again, I didn't make it to a 3000-level business course in college, but I have had some exposure to bankruptcy.

First, I've gone bankrupt in Monopoly. Second, our parent company faced speculation of pending bankruptcy not too long ago.

It's interesting to note now as I make comparisons to the Rangers' situation, but I didn't win any of those times when I went bankrupt in Monopoly. (Although, I now believe, that could be because I went the wrong chapter of bankrupt. I'll have to review the rules.)

And I certainly don't remember anyone yelling "Woo-hoo!" while our company worked to avoid bankruptcy. (If your company has been through this, you know that nobody feels like woo-hoo-ing when hearing such words as "pay cuts," "layoffs," "buyouts" and "involuntary furloughs.")

I went back and looked at box scores from this season and didn't discover one game in which the Rangers played with two outfielders because the third had accepted a buyout offer. Or a game in which the Rangers saved big salary money by having the pitcher bat while the designated hitter took an unpaid day off. Although the Rangers have yet to visit a National League park, so we'll see.

It would be odd if the Rangers did have to play short-handed because they still owe Alex Rodriguez of the New York Yankees, Kevin Millwood of the Baltimore Orioles and Vicente Padilla of the Los Angeles Dodgers more than $39.3 million combined in deferred compensation, as Chapter 11 filings revealed.

They also owe money to Mark McLemore (almost $1 million) and Mickey Tettleton (more than $1.4 million). At least McLemore is still around, providing Rangers analysis on television. Tettleton last played for the Rangers in 1997. Now that's deferred compensation.

Hey, here's an idea: Tettleton did play a little first base. Perhaps he could earn that money owed a little quicker if he comes back to temporarily solve the Rangers' first base problem.

I admit the Tettleton idea is a little far-fetched. But it makes as much sense to me as how a team declaring that it can't pay off its debts is going to allow the team to pay off those debts and then move forward with an even larger budget than the one it currently has, which included pay cuts and has been supplemented by loans from Major League Baseball just to keep the business operating.

Still, I'm willing to accept that as true and enjoy the party.

One question, though: Did anyone think to invite the creditors? I haven't seen any of them around here in party hats.

Sometimes, debt can be overwhelming, and bankruptcy becomes necessary.
Bankruptcy can sometimes be difficult. If you are considering bankruptcy, contact the Houston bankruptcy lawyers of Weston & Associates, PLLC at 713-623-4242

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