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.
Not certain why the site has been slowed. Worked much of Wednesday on it and will continue today. Sorry for the inconvenience. I will probably take it offline for a while, but it will be up before the game against the Mets.
Mine has been really slow to load -- on different computers from different locations.
Anybody else have issues accessing the site this afternoon/evening?
Boras is 63, maybe he'll be retired or dead by the time Bryant, Russell, Almora, Albertos all hit free agency. Doubt he will be before Jake hits there though.
Interesting choices when guys get healthy.
LaStella, Fowler & Soler replace Coghlan, Almora and Sczcur? I assume they don't want Almora to sit.
Despite MIggy's demise, I assume they keep him around to mentor Contreras?
I believe Willson now has more CS than MIggy. The kid has an arm. Also, Russell is amazingly good on those plays at 2nd.
oh yeah...thanks joe/billy.
poor outing, still got the win, go cubs.
Although it felt like it, Jake didn't lose to them -- he got the W. (Assuming you are referring to Monday's game)
Arrieta didn't lose to the Reds. He got the win -- he just didn't pitch like we expect him to.
almora's 1st HR!
it's not like this CIN team is lost-cause horrible, but aside from defense and power this is a truly horrible team.
kinda crazy arrieta lost to them and yesterday's game had to go 15 innings for the cubs win.
It looked like Hamilton got screened by Duvall and that Duvall just barely deflected the ball off of his glove--redirecting it slightly without taking away much of its momentum.
At least it didn't turn into a Schwarber/Fowler situation. Hamilton and Duvall are both pretty important youngish players for the Reds.
he walked off the field on his own. aside from a concussion watch and some attention to his leg/knee that buckled a bit under him, the biggest thing hurt was probably his pride after the ball knocked off his skull.
After last night, an inside-the-park HR seems kind of run-of-the-mill somehow.
Sounds bad for Hamilton. Hope he's okay--listening on the radio.
SHOW ME THE MONEY: Jose Albertos has signed with Mega-Agent Scott Boras.
Albertos has already received his signing bonus and won't see any additional significant money until he reaches the big leagues, so this is a long-term investment for the Boras Corporation.
I am glad Joe is managing this team and not Old and Blue!