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.
d.gordon leads off MIA inning with a HR...came up to bat wearing j.fernandez's helmet.
he barely made it back into the dugout after crying his way around the bases.
i can't watch this game anymore. it's too much...too real.
FLA really doesn't look like they're mentally/physically prepared for this game. never seen anything like this...it's not just a few people in the dugout still feeling it large, it's pretty much everyone.
i doubt it will lead to some kinda error-filled little league quality game, but everyone looks drained and still draining.
...and onto the cubs game. go #100.
The Marlins organization is obviously affected deeply by this. I feel for the people there. And I understand circumstances have changed.
But retiring his number. Wow. Literally a week ago the rumor mill was fast and furious about how Fernandez was going to be traded this winter, with the front office in response doing almost nothing to deny it. And to turn around and retire his number, just like that, when they obviously felt the organization would have been better long-term without him, just reeks of insincerity.
jose fernandez's number is going to be retired by FLA.
there's custom jerseys on their way to tonight's game (and hopefully will make it on time). all the marlins are going to wear #16 tonight.
this still sucks.
probably saturday depending on what they do with hammel (assuming friday for ham).
Lester is going to get one more start, right? It sure would be nice to see him get a shot at 20 wins.
Nicely done! I think in my 10-14 games I went .500 or a little over. Strangely, I went to the Cards games they mostly lost (incl Saturday) and the one SF game they lost, plus a couple Brewers games they lost, too. I should have gone to just Reds games. But still - saw mostly very good baseball on the North Side this year. Regardless of what happens come October - the Cubs are positioned for some good times in the next 3-5 years.
First Cub victory at home this year for me!
Saw all four starters this year
RIP Arnie. We could use a lot more like you -- a man who succeeded and failed on his own terms, a true original, and, finally, a remarkable example of graciousness towards others.
Cubs finish 33 over at home. I was, personally, one game over at 3-2, which was one of my better years in a while.
I do hope that's the last time we see the Cardinals this year. A lot of power, which is dangerous, particularly in a short series, and they have really shut down KB all year.
Oh, and Jon Lester? Damn!
Yes. Boating accident at 3AM. Very sad, but stupid. Young men do stupid things.
lester puts 2 on and is taken out at 96 pitches. oh well.
2 out in the 7th, lester at 84 pitches, ross taken out for the standing O.
it's possible contreras will catch lester for another inning+.
What a weird day. Jose Fernandez and Arnold Palmer, but then Scully and, on a much more modest level, Ross....
d.ross gets his 2nd standing O on the night (last home game of the season)...hits HR #10...curtain call. baseball.