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.
They are trying to bring the facility to the 20th century.
I think they know what they are doing.
With the Cubs adding Pierce Johnson to their roster and not exposing/losing him to the Rule 5 Draft keeps the trade ancestry tree alive that started in 1999 with Tom Gordon and undrafted Adam Morrissey and includes 17 players, the trade tree progressed to involve the Hee Sop Choi for Derrek Lee deal and the famous Aramis Ramirez/Kenny Lofton deal..Pierce Johnson is the compensation pick for Aramis Ramirez in 2012
the Rex brothers?
Yeah, the Rex brothers, Tyrannosaurus and Oedipus
When I first saw the Tweet, I thought there were two guys. Happy Thanksgiving gang! And TheoJed!
They can use another Brother
Cubs acquired Rex Brothers. Awesome fit for this team. Wander Cabrera going to COL.
"MLB announces #Cubs Minor League RHP Tanner Griggs receives 50-game suspension without pay after testing positive for amphetamine"
2014 12th rounder...
it's hard to know who to blame...on one hand he's a baseball player, on the other he sells cars in the offseason...either job leads to amphetamine abuse. =p
Thanks PHIL! I thought only the Cubs had control until the last day of the MLB 2015 Season.
that's awesome...makes me look forward to hearing theo talk some more about how the team needs to be creative with finances because money is tight.
See What The Cubs Are Building This Off-Season For Wrigley Plaza, Clubhouse
CUBBIES-4-EVER: It's not unusual for a PTBNL to be chosen after the Rule 5 Draft from the list of Rule 5 eligible players who were not selected. That way, a club gets a player they like (perhaps somebody like OF Jeffrey Baez) without the cumbersome Rule 5 roster restrictions that go with a Rule 5 Draft pick.
Clayton Richard is absolutely, positively NOT a free-agent. He is under club control through the 2016 season.
Haren was 4-2 with a 4.01 ERA with the Cubs. Seems like he worked out just as expected.
Did they ever say or who the PTBNL or cash decision on Rodney was or who was the PTBNL in the Austin Jackson deal was yet? Neither was worth whatever they gave up. Cahill and Richard were the only two good "deadline" deals they made. Hunter (given Lake was the odd man out by far and taking up a roster spot) and Haren weren't worth it.