After exiting bankruptcy, the Texas Rangers have been hitting a home run on the financial and game front. But what can individual and business bankruptcy debtors learn from Texas Rangers’ post-bankruptcy success?
- Have a plan and stick with it. Texas Rangers owners knew that if they wanted to be successful after bankruptcy they would need a plan which could improve their financial stability. That plan was created while they were still in bankruptcy and then executed upon their bankruptcy exit.
- Don’t pile on new debt in an effort to “get ahead.” One of the mistakes that Hicks made, which lead to the Texas Rangers’ bankruptcy, was funding his team’s goals and projects with borrowed money. The new Texas Rangers’ owners have avoided that mistake by reducing their debt and interest payments which have fallen about 90 percent since they exited bankruptcy.
- Create new sources of revenue. One of the biggest mistakes that individual debtors make is believing they can maintain their same lifestyle after a divorce or salary decrease or some other drastic change to their income. The Texas Rangers didn’t make that mistake, after exiting bankruptcy they secured a television deal which is worth $1.6 billion over 20 years, or $80 million a year. They have also worked to increase their revenue by looking at innovative ways to engage their fan base and convince them to buy season tickets for their games. It is this type of post-bankruptcy due diligence that can make all of the difference for both individual debtors and corporations who choose to file bankruptcy.