As previously posted on this blog, the Major League Baseball team, the Texas Rangers, were teetering on bankruptcy. Well, they stopped threatening to do it and actually did take the plunge into bankruptcy a few weeks ago.
They took the step of filing for bankruptcy in order to facilitate a sale to a local group that includes Nolan Ryan as one of the investors. This move has angered many of the former creditors of the team that are concerned that they will be left out in the cold after the sale is completed.
The only creditors that are fine with the team filing for bankruptcy, are the former players that are owed money. In fact the top six unsecured creditors that are owed money from the Rangers are all former players with Alex Rodriguez leading the way. He is still owed $24.9 million on the last year of his previous contract with the Rangers, while Kevin Millwood is owed $12.9 million, and Michael Young is owed $3.9 million.
These ballplayers are all unsecured creditors and normally in a bankruptcy their position would be in jeopardy, but the Rangers have come out and said that all former players would be paid everything that they are owed.
It is certainly a great day to be a ballplayer, not only do you get the fame and fortune from being a ballplayer, but if your former team goes into bankruptcy then it doesn't even matter if you were a secured creditor or not, because you are getting your money regardless. This could serve as the begging of a new form of creditor the ballplayer creditor, secured or unsecured they get their money.