Sale of Cubs May Be Completed Before End of Civilization
Some more news has trickled out on the impending sale of the Cubs and Sam Zell is hinting that the Ricketts may not be the new owner afterall (emphasis added).
"These are very difficult times. These are difficult
times to arrange financing," Zell said in an interview, adding that if
the Ricketts deal falls through, he is confident the media
company--which filed for Chapter 11 bankruptcy protection in
December--will find another buyer for the ballclub.
"We’ve made it very public that the Cubs don’t fit into the long
term picture of the Tribune," he said. "So if the Ricketts deal doesn’t
get done, I’m sure there will be other ones."
Sure, a lot of people have $900M or so lying around to spend on the Cubs as evidenced by the three legitimate bids Zell actually received. Of those three bids, Ricketts was supposedly not the highest but offered the most money up front, so if financing is the issue, a deal that would require even more to be financed is probably not going to have much more luck than the Ricketts are having now.
Of course...financing really isn't the issue it appears. According to this story dated May 19th, the Ricketts already secured a little over $850M of that $900M original bid; $403M from the sale of stock in Ameritrade and another $450M secured in bank loans (Clarification: Technically $753M is secured with a $100M coming from a private placement by Barclays which we do not know the status of, although the Ricketts claim they can cover it if it falls through). There was that story of Ricketts looking for 10 or so investors at $25M a pop, including celebrities like John Cusack, Bill Murray and Jim Belushi, but that round of financing was supposedly not critical to get the deal done according to "sources". Crain's Chicago Business also echoes that the financing is already in place and explains the real delay.
Thomas Ricketts, who is leading his family’s bid for Tribune Co.’s Cubs, has lined up financing for the deal, but a dispute over price is delaying the transaction.
The Ricketts family, whose original bid was close to $900 million, now
believes the real price should be closer to $850 million, a source
said. The sides disagree over the value of the team’s multiyear
contract to broadcast games on Tribune’s WGN network.
At issue is about $40 million to $50 million — roughly 6% of the
original bid, which also includes Wrigley Field and a 25% stake in
regional cable channel Comcast Sports.
So the Ricketts are either short $50M in financing and trying to talk Zell down or they really are unhappy with the broadcast rights. I'm going with option B here. It appears the Tribune made sweetheart deals with WGN radio and television to broadcast the Cubs games at below fair market value for a contract up to 10 years sometime last fall. Ricketts isn't buying any stake of WGN, but is supposedly getting a 25% stake in the Comcast sports channel that already broadcasts about 80 games a year. So naturally, if he owns the cable company he'd like more games to go on there or be sure he's getting paid the appropriate amount in any licensing deal to WGN.
So don't believe the Zell lies, the money is there for Ricketts, Zell just isn't liking the terms.
Hat tip to waxpaperbeercup that has been all over the sale process, also check out Mark Cuban's blog on why he bowed out and wasn't going to pay anything near the $1 billion asking price at this time. End of the world coming Decemeber 21st, 2012...John Cusack (Cub fan) is starring. Coincidence? I think not.
i'm more "wtf?" about him hitting 2nd than playing LF...especially since zobrist exists.
Soler's primary position is suppose to be in left for this season so technically he is not out of position. Although I agree, it does seem weird given their histories.
Any idea of where/when Cease will head for the season?
Over/under on HBP tonight?
Yes, I know KB played LF and Szczur played RF last night, but there's a legit case that RF is the easier draw at PNC.
Seems an odd lineup -- Soler in LF and Bryant in RF? Two guys out of position? I guess Fed has to catch tonight so All Star Gramps can catch Lester tomorrow. Or maybe Joe just wants somebody else to catch a no-hitter. Would love to see KB get the power turned on. C'mon Jorge -- channel your playoff self!
All it took was Schwarber, Heyward, and Szczur getting hurt for him to get to play again. Let's go ahead and call this little stretch your last real chance to prove you belong on this team, Jorge.
soler hitting 2nd...didn't expect that one.
tonight: Fowler, Soler, Bryant, Rizzo, Zobrisjt, Baez, Russell, Federowicz, Arrieta
roster shuffle official per Sun Times, Gordon Wittenmeyer on twitter...Szczur to DL with minor hamstring strain, Chris Villanueva to 60 day DL, Ryan Kalish to 40 man roster and gets the call-up.
There's an interview with Heyward up on ESPN where he says the wrist thing has been lingering and he just brought it up with the team as it didn't go away. So that could very well explain why he hasn't had the same hard contact recently.
Ryan Kalish writeup (by Peter Gammons last November):
Villanueva goes to the 60 day DL.
Peter Gammons just tweeted that teammates are tweeting Kalish is getting recalled. Not sure which ones and what they'll do with the 40 man but there we go.
Jesee Rogers just said he thought Ryan Kalish would be the call up.
Ryan Kalish is not on the 40-man either.