Billionaire Sports Owner Tom Hicks Stops Making Loan Payments
Billionaire Tom Hicks (#701 on the Forbes list for 2009) has found himself in a bit of a tight financial spot. His holding company which owns the Texas Rangers baseball team and the Dallas Stars hockey team has defaulted on about $525 million in loans. Hicks has said the move was deliberate, a business strategy as part of his negotiations with the banks. His company want changes to the lending agreement including full access to reserve accounts and a revolving credit line.Hick describes the decision as a "nonevent for the teams, fans, sponsors and vendors" and has said he is doing fine financially, well, as fine as one can be in these times. Last week reports came out that he was looking to sell large minority stakes in both teams.
Sports teams generated a lot of revenue but they are also extremely costly and much depends on audience interest. The economy has has a deleterious effect on ticket sales for many teams. Last year's attendance at Texas Rangers games was particularly low and Hicks is hoping for better luck this season. The Rangers have their home opener on Monday.
