Is Tom Hicks Going Broke?

D Magazine, Jul 01, 2002 by McGraw, Dan

Now, much of this is informed conjecture, and nobody knows Tom Hicks' personal financial situation except Hicks, his wife, a couple of the original partners, and maybe a banker or two. But put in perspective, the prospect of writing $40 million checks for the Rangers doesn't seem as minor as Hicks makes it out to be when he's chatting with a reporter. It makes one wonder if Hicks blew up at the Dallas City Council over the Victory project because he doesn't like the way the city operates-or because he flat-out needed the cash. It also makes one wonder why he might now claim that, before he bought the Stars, he planned to sell the team all along. Could this be a rich, though cash-strapped, man laying the foundation to cover his posterior when he does sell? This line of questioning might illuminate the recent release of the $6 million Ed Belfour in favor of the $850,000 Marty Turco. Decreasing payroll to improve cash flow outlook is sometimes termed "dressing up Grandma" in deal circles.

Certainly the vultures are hovering. The Daily Deal's Kosman sounds a common theme: "If we looked at Tom Hicks in January 2001, he was ranked in the top 10 of all private equity firms, he was on the top of the sports world, his personal friend had become president, and there was talk of his being named Treasury Secretary. All the stars were lining up for this guy. Now his firm's in some trouble, his sports teams are terrible, and he was passed over for a cabinet post. It's amazing how quickly all of this has caught up with him."

It's also amazing how quickly it could turn around. A solid performance with Swanson frozen dinners and Vlasic pickles, a smashing IPO for the British yellow pages, development of new offices and apartments around The Ballpark in Arlington, a pennant for the Rangers, and another run at the Stanley Cup for the Stars-all that would scatter the clouds and bring sunshine once again to the world of Tom Hicks.

Then again, I shouldn't make such assumptions. None of these occurrences would affect any of the others. None of the dots are connected. That much Mr. Hicks has told me.