Texas Ranger’s post-bankruptcy administrator Alan Jacobs has accused former Rangers owner Tom Hicks of outright stealing from the bankruptcy estate and is now suing him for millions.
…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.
The parking lots in question were a part of the bankruptcy estate of the Texas Rangers; but when the team was sold, Hicks insisted that the parking lots remain separate from the deal. The result is that now the parking revenue generated from the lots could be worth $100 million or more, money which the post-bankruptcy administrator insists was fraudulently misappropriated from the Texas Rangers team. The post-bankruptcy administrator also claims that Hicks used the assets of the Texas Rangers to acquire the parking lots for his own enrichment while neglecting the well-being of the baseball team.
For his part, Hicks has vehemently denied the allegations of the lawsuit and expressed an interest in defeating in court what he calls “baseless accusations.”