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Monday
Jun152009

Rangers Lay Off "Less Than 10 Percent" Of Front Office

As if we needed further evidence that the Rangers are evidently going to have to pare significant amounts of payroll to facilitate a key deadline deal, we have this missive from D Magazine's Evan Grant:

The difficult economy and uncertainty about future ownership pushed the Texas Rangers on Monday to lay off “less than 10 percent” of the 275-person front office, club spokesman John Blake confirmed.

Blake said the club reached the difficult decision to make layoffs in season after reviewing several factors, including the economy and positioning the club for sale. Owner Tom Hicks, who in March opted not to make an interest-only payment on a loan of $500 million to his sports group, has been actively seeking investors to join him. Hicks has also said he would be willing to part with his majority stake in the club in order to get a deal done. The Rangers have been valued at approximately $500 million recently.

The timing of the move may seem odd given that the Rangers last week picked up the 2010 option in manager Ron Washington’s contract last week and then selected two players in the first 44 picks of the amateur draft who are expected to demand bonuses well above Major League Baseball’s recommended “slots.” Blake said, however, that in light of the economic environment, the club has been looking for ways to cut costs without diminishing the product on the field or the fan experience.

The layoffs were apparently limited to the business/administrative side, a reassuring development in that parting ways with key front-office decision-makers on the baseball side due to fiscal constraints would really suck. What's a little curious is the repeated citation of the economy as a major factor in the decision, given that attendance (and presumably revenue) are up pretty significantly thus far in 2009 ... I'm guessing this was about trimming the proverbial fat (no disrespect intended towards those who were laid off) and being forced to prioritize the utility of certain positions above that of others as a cost-cutting measure.

Reader Comments (1)

This is a common move for company's that are trying to improve their books in preparation for an outside investment. A 10% reduction in personnel results in an increase in profitability and a corresponding increase in perceived value. The economy was just an easy scapegoat for what was most assuredly an accounting move.

June 16, 2009 at 5:53 AM | Unregistered Commenterdavid

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