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JULY 16, 2009 9:18AM

Tom Hicks, "Broke" Billionaire and Karmic Killer

Rate: 6 Flag

"I create nothing. I own."

There's a lineage of evil in ownership of the Texas Rangers baseball team. First it was [the anti-Christ 43rd President] and now Dallas' own Tom Hicks, a leveraged buyout (LBO) specialist, a.k.a economic parasite. But the keyword here is 'leveraged' because Tommy boy failed to see the financial crash coming and got caught with his pants down: fully leveraged with his assets tied up and his cash flow dried up. First he defaulted on a $525 million dollar loan backed by the Rangers and Dallas Stars, then he had to go hat in hand to Major League Baseball and ask for a $15 million loan to make payroll. Some billionaire that is.

But it couldn't have happened to a nicer predator. As an LBO guy, it's Hicks' job to increase the value of assets acquired in order to justify the cost of the loan. There are all sorts of ways of doing this depending on each situation. Hicks doesn't create companies or products or services, he has to feed off the original efforts of others and then swoop in when he finds an opportunity. But this makes him Tommy on the spot, requiring him to make good on his loan. One way to do that is to cheapen the lives of workers, a fine American tradition.

The knife fights are a free perk

This from an article on one of the Swift meat packing plants Igor LBO'd:

Today Salcido is a plaintiff in two separate class-action lawsuits against Swift. One alleges that the company wrongly terminated dozens of injured workers to save on workers' compensation costs, slashing them from $6 million in 2002 to just $600,000 two years later, and another claims the company deliberately and systematically replaced native workers with illegal Guatemalan immigrants in a scheme to depress wages. While Swift acknowledges that it fired employees who'd been on injury-related restrictions for more than six months, it denies any wrongdoing. The company also says it did its best to obey immigration laws during hiring.

Nifty scheme, that. Once your body is torn apart, you get thrown out into the street. Think anybody else will hire you as such an obvious insurance risk? You think unemployment is bad, try being unemployable, in a foreign fucking country no less. And not content with Hispanic workers who apparently proved too feisty, Guatemalans were shipped in.

Caught in a no-win situation after the raid

"...many of whom came from the same highland area and spoke a Mayan dialect, not English or Spanish...When asked their names, many would point to their government-issued IDs or Social Security cards. Some had names like Smith and Johnson."

The Guatemalans were too fearful, too disoriented to complain about unsafe conditions and basically were used as kleenex - use one up, get another. Swift & Co tried to set up plausible deniability, but that did not stop a raid for illegal immigrant workers, causing one plant to shut down.

"...accounts of former workers reveal a brutal work environment in which safety precautions were persistently disregarded and failed to prevent injuries caused by slips and falls on greasy floors, rapid line speed or repetitive cutting with dull knives. Many of those interviewed said verbal abuse, intimidation and sexual harassment at the hands of supervisors were common, especially after they'd been injured or had reported safety violations to the Occupational Safety & Health Administration."

If you read these articles, the viciousness illuminated therein is of nightmare proportions. To have one person crippled for life and left to die is unconscionable. To make it systemic is beyond belief, a Nazi wet dream. I wonder how dear Mr. Hicks would respond if that were one of his children being victimized. Why is it monsters like this are allowed to roam free and even be lauded? What does that say about us?

Republicant unmasked

Dark Voices live among us and how we deal with them determines our fate. We listened to one such voice and made it President for eight years, bringing wholesale destruction we very possibly may never recover from. Having a job doesn't make you a good person. Making money doesn't make you a responsible citizen. A person's lifestyle doesn't determine his worth in the eyes of God. But we choose to keep such myths alive, to claim worth that is not due. And in so doing, we sow our own karma and allow the beasts among us to feed off our very lives.



From our local D Magazine on the 100 Most Expensive Homes in Dallas:

#1 Cinda and Tom Hicks
$41,462,030

On the one hand, the investor and sports team magnate looks to be in trouble: he recently defaulted on $525 million in loans, he’s trying to sell off parts of the Stars and Rangers, and this month the $400 million loan he used to buy Liverpool FC comes due. On the other hand: he lives in a 28,996-square-foot house on 25 acres, and last year he used 10 million gallons of water.

------------------
"But woe to you who are rich
For you have already received your full comfort "

------------------

Lucky for us there's good news:

It's there when I look in your eyes

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Comments

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Igor sold it in 2007 to a South American company. The Swift company recently had 41,280 pounds recalled due to possible E. coli. Lovely.
Hicks is not only a dick but a foolish one too--singed A-Rod for a quarter billion--what a dick. 10 million gallons of water?

"But woe to you who are rich
For you have already received your full comfort "

Those bastards who are running that Swift needed to be in jail. Fucking hope there is karma.....,
There's nothing like a "good" Texas story, and you've got the best. I didn't know the Hicks story. Interesting. (Also, I feel like eating Karber-bird for lunch).
The water thing struck me too, Spud. At least these guys are in karmic jail.

I'll find it more interesting if he goes down in flames, Steve.
While I don't think this is relegated to Texas, Dallas is such a pretentious city. You're lauded if you have money. But, no one stops to question how it's made Here's hoping every cent is taken from Hicks in the worst way possible.
Harry, over the months I've read you, your political commentary has gotten ever more forceful and incisive. This strikes me as your best one yet, perhaps because I live here and knew very few of these details. Contrasting the work conditions at the Swift plant with the excess at his 41.5 million dollar estate is especially galling.

Also - very clever name - Republicant.
Julie, Austin has "Keep Austin weird", we have "Keep Dallas pretentious (Do your part for materialism)"

Annette, I've been fuming over this for years. And in my life as a Blade Runner I was a Republicant Hunter.
Nice job, Harry. What Swift did has been replicated (republicanted?) all over the country in a number of different industries - construction, garment, janitorial, to name a very few. Just goes to show, you take away the watchdogs and the rats multiply like flies on shit.
Yes, I suspect the moles are everywhere, undermining us as we speak.
Julie's right, when I lived in Orlando, the elite bedroom community was hoity-toity Winter Park, where the city's welcome sign read "Welcome to Winter Park: Please drive with extrordinary care" -- until some wag scratched out the last "e".

The Rangers are cited as W's lone business success, when the truth is he was just a front man. In fact, the investor who put up the money to buy the team insisted he would only do so on the condition W had NO authority about anything. So much for being The Decider; rumor has it that whe W and his buddies sold the team, they left Arlington holding the bag for the stadium loan.

As for Hicks, sounds like it couldn't happen to a nice guy; you gotta love that Free-Market shit, eh Mr Hicks?
Yes, like most of his ventures, W was set up with a sweetheart deal for the Rangers by his buddies a.k.a the pallbearers in 'Being There'. This one actually panned out. Once seduced by the millions, they knew they could count on W to return the favor like a loyal, mindless dog.
The Rangers deal was all Poppy, who arranged it because Junior was broke, having driven two companies - Harken and Arbusto - into the ground. It was Poppy's political contacts who gobbled up the land for the stadium at bargain basement prices.
Laughing and crying. Good stuff, or bad if you live in the real world.