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.
Agree. It could not be more perfect that we beat the Cardinals in this ascendant season of all seasons, and in the first postseason series we ever saw them in.
I think all we can say is, "Okay, let's go on to the next series and see what happens." And how indescribably awesome is it to be able to say that on this date in this year.
Thanks, O&B. So funny about our age. Let's just say- I have always wondered why Durocher didn't give Hundley a few days off when he had Gene Oliver and John Boccabella on the bench.
Strop K'ing Peralta to start the 8th, given their history -- what a fantastic moment! And Javy bouncing back -- big time -- form yesterday's games.
Contributions from literally everyone in this series -- Soler and Schwarber were off the charts -- Miggy's pick-off was awesome.
This team is just so much damn fun.
Wish I knew how to post a pic. Both CUBSTER & I in attendance. I finally feel like some demons have been vanquished, and there is some magic here.
Joe Maddon is far and away the best manager I have seen work for my team.
pretty much this. also, a magician.
Madden brought it in some lions and sharks to Wrigley Field and let them eat people
What did I miss?
I think Strop deserves a very special mention. He had so many struggles against the Cardinals but pitched two successful and very high pressure innings the last two games against them and looked nasty doing so.
How about this, the Cubs are 10-1 over the last 3 weeks.
I was thinking about it earlier that the Cubs are 101-66 and the Cards 101-65...but, does anyone outside of the two of us ever calculate records including post season? Don't think I've seen that ever before.
With today's victory, the Cubs are just 1/2 game behind (0.5 GB) the Cardinals for the best record in MLB in 2015.
If they win the LCS and the World Series and go no worse than 8-4 in the process, the Cubs will be World Champions AND they will have the best record in MLB in 2015 (CUBS 109-70 .6089 versus STL 101-65 .6084).
Well, I can say this...Cardinals fans certainly hate the Cubs right now...about as much as Pirates fans.
Our bullpen was friggin brilliant this series...even if their ERA doesn't look good.
Not sure who I want...Kershaw/Greinke is scary, but I almost worry more about the Mets ability to score in bunches like us.
Do like the fact that if it is the Dodgers, Kershaw can't go until Game 2 and Greinke until Game 3.
I agree with you, but I hate them both. I hate Stephen Piscotty. I hate Tommy Pham. I hate Yadier Molina. I hate Kolten Wong. I hate Jon Jay. And that's just off the 2015 version of the Cardinals.
Sorry, I'm a hateful person :(
The Cardinals themselves are fine and a tough opponent, it's really just their cocky, hick fans I can't stand.