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.
Geo Soto leaves the WSux and signs with the Angels who lost Chris Ianetta to the Mariners.
Freed... The Angels also promoted Bobby Scales from director of player development to special assistant
AZ PHIL- Is Clayton Richard a free agent or not? One site I see he is, on another no. MLB has him listed as a free agent, Cot's contracts says he is a FA, baseball-reference says he's not, but Cubs have him on active roster. I know that he is just short of MLB 6 years service by just like 15 days, but that doesn't always matter.
Except that he gave up Russell and McKinney for a half-season of Hammel...
Beane cam at least point and laugh at Hammel.
The genius Angelo traded Olsen at Martzs request
Maybe Theo will sign Shark just so he can call Billy Beane and say: "Let's see...Russell? Check. McKinney? Check. Hammel? Check. Ninja? Check. Any other deals?"
To be fair to Emery and Trestman the foreshadowing of last year started happening well before them with the failure or mismanaging of multiple draft classes forcing the team to overspend in a free agency market that is even worse than baseball. Kyle Long seems like a good pick but they traded away another good one in Olson because of Martz's stupidity and inability to change his offense to fit the team talent.
HAGSAG: I think Domonic Brown does fit the criteria of a reclamation project, but unless he is willing to accept a minor league contract with an NRI to Spring Training, I don't think the Cubs would be interested given where the Cubs are right now. A couple of years ago? Yes. But probably not now.
Brown would be better-off going to a club that is rebuilding and re-establish his value there, like Chris Coghlan did with the Cubs. And if he can re-establish his value, he could get traded to a contender at the trade deadline and take it from there.
"they just fade away"
(Except in the cases of no-fade lefties like Moyer, Orosco and Rich Hill.)
Amazing to me how quickly it fell apart under Trestman. Year 1, they were a Chris Conte brain fart away from making the playoffs. Year 2 -- coach, staff and GM all fired.
I am sure Jonathon Mota will be signed next.
AZ Phil, what is your thoughts on Domonic Brown as a reclamation project?
He also played LF in deference to Curtis Granderson.
Meh... other moves to make...hope to see a move or two soon.
I haven't seen much Bears football this year - difficult to watch the games out here, but the game I saw the week before I was watching in shock as I saw them actually make tackles. And Cutler has looked really good, too.
I guess people can quibble about play calling, but the team I saw is way more than 50% better coached (my only very minor disagreement with your comment).
Under Trestman, the team didn't do anything right. This team played like a well coached team when I saw them play the Rams.
"What is sometimes overlooked about Vogelbach because of his "bad body" and because he has struggled so much defensively is that he is a hard worker, has a great attitude, loves to play the game, and is very well-liked by his teammates, and while that may not seem important, teams do actually value stuff like that. "
As well they should. Replace a word here and there and you are describing any worker someone would hire.
Hak-Ju Lee signs a minor league contract with SF Giants.
Some closure on the 6 degrees of Separation for Matt Garza/Chris Archer