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.
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.
as a fan, he only "owes" us the game on the field and not getting in the way of others on his team being ready to play (imo).
it's exponentially worse to his family and friends, but this dude most likely had 15+ years of play left and even though he just turned 24 a couple months ago he had already established himself as a top guy in the game.
Carrie Muskat [email protected]
Updated #Cubs probs vs Pirates: Mon, Hendricks vs Kuhl; Tue, Lackey vs Vogelsong; Wed, Arrieta vs Taillon; Thu, Zastryzny vs Nova
I know what you're trying to say, Charlie, that none of us feels what his loved ones must be feeling.
On the other hand, what makes a death like this tragic is precisely the loss, based on Fernandez's youth and brilliance, to the baseball world.
So, for example, we can say that Princess Diana's death meant more, in aggregate, to millions of admirers who didn't know her personally than to her loved ones.
boston pitching snags a couple of mlb team records...
"Over nine innings of play, Boston's staff struck out 11 straight Tampa Bay Rays hitters Sunday, breaking the major-league record for most consecutive strikeouts in a game.
The previous record was held by former New York Mets right-hander Tom Seaver, who struck out 10 straight hitters in 1970.
Not only that, but with a strikeout to end the ninth, sending the game into extras, Boston's staff also struck out an MLB-record 21 batters over nine innings."
What a loss to baseball, which I'm sure pales in comparison to the personal loss to his loved ones.
Somehow I am sensing alcohol was involved. The highest number of boating accidents by a wide margin...
Reports this morning that Marlins' pitching ace Jose Fernandez died in a boating accident - just horrible news.