Former Rangers owner Tom Hicks was sued Monday by the team's post-bankruptcy administrator, who says the wealthy Dallas investor "stole" tens of millions from the major-league franchise to acquire what are now highly lucrative parking lots near Rangers Ballpark in Arlington and Cowboys Stadium.
Alan Jacobs, the administrator charged with disbursing assets from the bankruptcy sale, also accused Hicks of forcing the Rangers to spend at least $18 million on parking lots and roads rather than fund deferred compensation for ballplayers, as required by Major League Baseball. In all, some $30.5 million was misdirected, the suit said.Hicks issued financial statements that concealed the funding shortfall, according to the suit filed with the 116th state district court in Dallas.As a result, Hicks' Ballpark Real Estate now generates several million dollars a year in parking revenue near Cowboys Stadium and could be worth $100 million -- or more "if Hicks is successful in extorting additional parking revenue from the Texas Rangers' new owner and the team's fans."In response, Hicks spokeswoman Lisa LeMaster rejected the lawsuit's claims as baseless and said they represent a "bizarre flip-flop" by the team's major creditors, including hedge funds that bought up Rangers debt. "We welcome the opportunity to challenge these allegations in court," she said.In another development, J.P. Morgan Chase on Monday asked U.S. Bankruptcy Judge D. Michael Lynn to disallow a $5.6 million claim by Hicks on the Rangers' bankruptcy assets, asserting that it was not a loan by the team owner but an infusion of equity.The Rangers filed for Chapter 11 bankruptcy protection under Hicks in May 2010, after his company defaulted on bank loans. The team was sold 21/2 months later in a bankruptcy auction for $593 million to a group that included Nolan Ryan and XTO Energy founder Bob Simpson. Jacobs was appointed administrator and disbursing agent for the post-bankruptcy plan.Jacobs' lawsuit seeks to recover tens of millions of dollars that Ballpark Real Estate "wrongfully" took from the team, "tens of millions" in lost team value, as well as hefty parking revenues and increased land valuation. Former Mavericks owner Don Carter reportedly is an investor in the real estate firm, 80 percent owned by Hicks.Asking for unspecified exemplary damages, the suit argues that Hicks's conduct was "outrageous, malicious, fraudulent, grossly negligent or otherwise morally culpable."LeMaster said the only reason that the real estate firm still owns the land is because the hedge fund investors and the team's former chief restructuring officer insisted that the property be severed from the team sale. "Now, they say it is worth $100 million," she said.Jacobs' lawsuit noted that while the ballclub was a guarantor of much of the hundreds of millions that Hicks Sports Group defaulted on, the real estate firm "escaped any liability for the debt and did not have to put its own assets up as collateral." So by taking funds from the Rangers, Hicks had the potential to make profits and shelter assets from lenders.By doing so, the post-bankruptcy administrator said, Hicks violated his responsibility to act in the team's best interests, as required by baseball. Had Hicks complied with his fiduciary duties and funded the Rangers' deferred-compensation obligation, creditors would have received an additional $39.5 million.Barry Shlachter, 817-390-7718
