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.
Awesome thanks AZ
Great report, Phil! This organization has so many hitters to be excited about.
Ben Zobrist is very enjoyable to watch!!!!!!
given that he seems to only be throwing low 90s these days rather than the 93-96mph he used to throw, along with his wildness issues this year, he may end up passing through.
i dunno if something is wrong with him physically or his past shoulder issues has rendered him what he currently is, but he's been throwing a lot of sliders he can't control well and his fastball isn't as sharp. even when his slider wasn't working in a game he was still throwing a lot of them.
Any scuttlebutt on where Neil Ramirez gets traded?
He seems better than some of the relievers on competitive teams. He ought to bring more than the waiver fee.
My guess? Toronto.
PHIL: It seems as if Paniagua has always played 1B with the Cubs. At 6'2 and 180#, what is his frame like? String bean? Have you seen him bulk up? Where do you project him? Thanks.
Phil, what's your thoughts on which position players are going to Eugene and who is staying in AZL?
Ahhh...way to bring me down BB.
Still - a win tomorrow will be an acheivement regardless.
Don't mean to spoil your mood, but with tonight's win the are 3-5 on the trip with one to play.
While I'm bringing the room down -- Richard comes in to pitch the 9th with a 12-1 lead...and can't finish the game. Woof.
For some reason
It is remarkable how my mood has become uplifted with one game against the Cards.
That is sick.
But, I have been an addict for a long time.
A W tomorrow and it will be a .500 road trip.
Also, to keep the losses in perspective, if the Cubs were to lose 10 games a month - a lot at this current pace - they still end up 102-60. Six months of the ride!
So, the Mesa Cubs should be solid this summer in the AZL Rookie League?
And, I like the, "But did you know" lead in there. Something a little different.
I can tell really like this group of hitters in AZ right now.
What pitchers out there, other than Cease, should we be excited about?
Thanks as always for the info.
back on the Run Differential hunt... (aka The Hunt for Blue October)
These are the 2016 Cubs I know and love. Also digging that Cardinals OF (lack of) defense.
Another day, another eight runs
I'm not sure there was another team in baseball that would flip a Dansby Swanson type of prospect (plus Inciarte, plus Toussaint) for Miller. That trade was just comically bad from the start, and getting worse...