The more than three dozen creditors of Hicks Sports Group (HSG), the owner of the Stars and MLB Rangers that defaulted on its debt in March, "sent a letter to the NHL four weeks ago asking the league how it planned to help address their concerns," but there "has been no response," according to sources cited by Daniel Kaplan of SPORTSBUSINESS JOURNAL. Sources said that HSG Owner Tom Hicks at the same time has "suggested that he believes he can hold onto the Stars despite the default through August 2010, which is far later than the October deadline the creditors assumed existed for resolution of debt crisis." The sources said that if a default "happens within six months of the start of an NHL regular season, the creditors then have to wait through that season, plus another 60 days." Kaplan notes the situation "could shape up as a major battle between the creditors on one side and the NHL and Hicks on the other." A source: "There will be litigation for sure" ( SPORTSBUSINESS JOURNAL, 8/17 issue ). In Dallas, Mike Heika cites a source as saying that HSG's plan "still is to sell the Rangers and pay off the debts while maintaining ownership of the Stars long into the future." Another source said the "single most-important point" is that if Hicks "doesn't have the money to run these franchises, he should sell them off to a good buyer who's going to take care of them." The source: "He can use the proceeds to pay off the debts." Heika notes the Stars for the first time in the salary-cap era will "spend significantly under the cap," as the team has an "estimated budget of $45[M] for next season." The NHL salary cap is set at $56.8M ( DALLAS MORNING NEWS, 8/19 ). WHO'S RUNNING THE SHOW? In Dallas, Kevin Sherrington notes ever since reports circulated that MLB "helped the Rangers make payroll , speculation has run rampant about who's running the club." And while the Rangers "insist business proceeds as usual," the team's inability to sign first-round draft pick P Matt Purke will "only add to the rumbling about the Rangers' financial health." However, Sherrington predicts when the Rangers draft next year, "signability won't be an issue." Sherrington: "You can't afford to lose your top pick two years in a row. You can't afford to do it once" ( DALLAS MORNING NEWS, 8/19 ). In Ft. Worth, Randy Galloway writes the Rangers "haven't been this financially wrecked since the late 80s," and are "hanging in financial limbo, operating at the whim of other major league owners who can't be too pleased about bankrolling" the team. The failure to sign Purke showed Hicks is "no longer in control of the Rangers, which is a first for the franchise." The team "couldn't sign Purke because" MLB Commissioner Bud Selig "shut off the bidding, probably at the suggestion of other owners" ( FT. WORTH STAR-TELEGRAM, 8/19 ).
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