Via TSN -
An attorney for New York Yankees third baseman Alex Rodriguez has filed an objection to the bankruptcy plan proposed for the Texas Rangers, saying Rodriguez is unsure he’ll receive $24.9 million in deferred compensation owed him by the club.
The objection was filed Wednesday in U.S. Bankruptcy Court in Fort Worth, Texas. Rodriguez is seeking “adequate assurance” the club’s new owner will assume his contract.
Rodriguez’s attorney wrote, “It is not clear under the plan” that the pact will be honored. The Fort Worth Star-Telegram reported that Rodriguez, through his lawyer, also alleged the Rangers’ current parent has not funded a $45 million escrow account for deferred compensation, as required by Major League Baseball.
Rodriguez agreed to defer $45 million in salary in 2001, a year after he signed a record 10-year, $252 million contract with the Rangers. Texas traded Rodriguez to the Yankees in 2004, but it remained on the hook for the deferred money. Rodriguez opted out of the contract after the 2007 season, then re-signed with the Yankees for 10 years and $275 million in December 2007.
The Rangers declared bankruptcy in May with the idea of expediting a sale to a group led by team president Nolan Ryan and Pittsburgh attorney Chuck Greenberg. Many creditors have since objected to the scheme, claiming the team was undervalued. An auction is set for next Wednesday.
Really can’t say that I fault Alex for doing this move. If someone owed me $24.9 million, and it was starting to look like I might not get paid, I would take action to protect myself as well.