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.
Blew my prediction! I had them signing Zimmerman and trading for another arm.
Damn wanted Zimmermann
Yeah, this market. Remember when Ted Lilly signed a 4/$40m with the Cubs? It was like "Well, I guess if you can throw a ball, that's what the 3 and 4 starters are all getting." I'm glad I'm not a GM. Of course, they're spending our money...
in this market that seems like a decent deal relative to the market.
given that d.price will probably get 30m-ish a year, 22m for 29yo zimm doesn't seem bad. i wouldn't complain about him suiting up for the cubs. one less option gone...
Zimmermann 5/$110m with Tigers. Youch.
And the updated predications page: http://bit.ly/1NWlEek
Cubs 3B Christian Villanueva (who is out of minor league options) is hitting 358/464/500 for Obregon in the Mexican Pacific League (LMP), and is leading the LMP in OBP, is second in BAvg and walks, is seventh in SLG, and is tied for 8th in HR. He also has struck out only 16 times in 175 PA.
CTSteve, thanks for spelling Zimmermann correctly. We don't need another first baseman.
The media has linked Cueto and the Cubs approximately zero times this winter. I'm thinking there's just not a lot of interest there on the Cubs' part. It seems unlikely.
If the Cubs miss on Price, Grienke, and Zimmerman, they will aim for a mid-rotation starter via free agency or trade. However, I think this scenario also significantly boosts the odds that they extend Arrieta.
The Tigers are going after Zimmermann and the Red Sox will be throwing money at Price. Bringing Cueto back to the NL with the Cubs is looking like a serious possibility. Thoughts?
Peter Abraham of the Boston Globe in the financial impact to the Red Sox for not signing Jon Lester early in the free agent process:
It will be interesting to ultimately add up the cost of letting Jon Lester go.
The Red Sox botched up their negotiations with Lester in during spring training of 2014, making an initial offer of $70 million that was roughly $40 million short of what it should have been. Talks broke down and Lester was traded in July.
Wait...you're flip-flopping again?!
Is this legal? What is the rule here on opining definitively and then changing your mind?
I am not only surprised at your declaration, but Cutler's better 2015 showing. I don't get it - he went through Martz, Turner, Trestman, Kromer, and now Gase...and he is still here! And. he'll be here mext year too.
Happ signs w Jays
Morsi saying Price won't be a Jay
needs more d.beeler and e.jokisch
As an Illinois tax payer I appreciate what they r doing
+ Bankruptcy Court