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.
K-DUB: I get a chance to see the other MLB clubs Player Development operations out here and I have talked to scouts and other baseball people out here from time-to-time, and I can tell you that the Cubs Player Development program has gone from being almost a joke to one that is one of THE best.
how did ej martinez go from asking for $10m, to supposedly mulling over $7m offers, to eventually signing for $3m?
...and what happened with him and the giants a few days ago?
Its not official until AZ Phil adds him to the Cubs Depth Chart!
Just freakin love it!
From Keith Law:
This from a Kiley McDaniel chat a couple weeks ago...
"Comment From Wrenzie
Who has more ceiling between Yusniel Diaz or Eddy Julio Martinez?
Kiley McDaniel: Martinez. I have Eddy (20 years old) as a 65 runner with a 55 arm and 50 raw power that profiles as an everyday CF that could be above average depending on if the bat is a 45 or a 55. I have Yusniel (19) as a 60 runner with a 55 arm and 40 raw power that can be an everyday guy if he hits enough (50 or 55)."
"Per Jesse Sanchez at mlb.com, Cubs reportedly have signed 20-year old Cuban OF Eddy Julio Martinez for $3M bonus.
Arizona Phil 7 hours 23 min ago"
it's day old news, and it's got nothing to do with the cubs, but ichiro signed a $2m deal with MIA (with a $2m option for 2017).
neat. 41 years old and damn close to 3000 hits.
also, rain delays suck.
take that giants
I think that if a team objects to the 1-game wildcard playin game so much, they could just win the pennant and avoid themselves the trouble.
Per Jesse Sanchez at mlb.com, Cubs reportedly have signed 20-year old Cuban OF Eddy Julio Martinez for $3M bonus.
BLOCK: Of course any advantage is an advantage. An MLB, NBA, or NHL team getting the extra game at home in a seven game series is an advantage, I just don't think it is enough of an advantage for winning a division and/or having the best record in a conference or league over the course of an 82-game season (NBA and NHL) or 162 game series (MLB).
TEX takes the opening game from TOR (@TOR) 5-3.
TOR lost bautista + donaldson in-game due to injuries...TEX lost beltre...dunno if any will be lingering issues leading to missed games.
Ride the Kid Magic! Schwarber hadn't homered in a long time before last night.
Greg Maddux was 8-18 in his rookie season. Kyle has the 8 wins down pat.
Think Baby Maddux.
Prof. Harold Hill's THINK system at work.
Kyle is on the far left.
I support this. Hendricks has not only looked better lately but seems to start struggling after a few innings which is better than the 1st in the playoffs.