Bankrupt MLB Club Owes Star Nearly $25 Million
May 27, 2010 | Richard Check | Leave a Comment
No one needs to hold a bake sale for Yankee’s star Alex Rodriguez, but it turns out that he is an unsecured creditor in the Texas Rangers’ bankruptcy. The Rangers officially filed Chapter 11 in Ft. Worth federal court yesterday, in part to orchestrate the sale of the club (for $575 million) to an investors group led by Hall of Fame pitcher Nolan Ryan and attorney Chuck Greenberg. The Rangers owe the third baseman about $25 million in deferred salary dating back to when A-Rod was a member of the team. He is the top unsecured creditor in the Rangers’ petition followed by five other baseball players. Unsecured creditors in a bankruptcy are those who have no security interest in a debtor’s physical property, and are usually last in line to get paid, if at all. Greenberg told the media, however, that the players will be paid in full.
Unsecured debt is debt that is not backed by collateral. In ordinary circumstances (outside of the world of superstar athletes), this can include unpaid credit cards, medical bills, utility bills, collection accounts, and personal loans. And sometimes a debt settlement can be an effective bankruptcy alternative for an everyday consumer in Wisconsin rather than an overextended sports franchise.
A debt consolidation lawyer can negotiate with unsecured creditors on your behalf perhaps without the need to file a Chapter 7 bankruptcy in Milwaukee. If you are in financial trouble, discuss your options with an experienced Wisconsin bankruptcy lawyer. He or she will work with you to obtain much needed debt relief in Wisconsin.
