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.
I'll root for the uniform and imagine it's left-handed Rod Beck or Randy Myers out there I suppose.
Amen to this. I guess it's gonna happen and I'm gonna have to suck it up but I really despise domestic abusers with every bone in my body and cannot stand them on any team I root for.
I just prefer they don't acquire players that choke their wives/girlfriends.
So you'd rather go with Blown Save guy, when you can trade a prospect who is blocked for one piece that could get you over the top to the Big Dance? That is pretty old thinking. This is not a move that they cannot recover from if it goes south. But the upside is potentially historic.
I'd prefer it not happen too.
it's a hell of a blockbuster, but it's for a guy who pitches 1/3rd of a season at an extreme premium considering the guy being traded and if the early extension $$$ rumors are true.
it's one of those things that is bringing a guy at the top his game, but something is nagging me that this trade piece could have been put to better use.
a huge part of me is all "hell yeah, top of the line producer"...another part of me is "hmm, that for that?"
Still don't want. Kinda hope they can't work out the extension.
obviously not, and I'm sure they did their homework...just hope they have some better answers than the Yankees
Chapman 12+ Career WAR. Currently 4.7:1 k-BB. With Rondon/Chapman/Strop/Nathan/Montgomery/Wood...Its the best pen I can recall other than Sutter or Lee Smith handling things themselves.
Its gonna suck if he gets injured, and it appears he's not the greatest of characters.
But, he'll have another Cuban to hang out with on the team.
I agree with the names you mention but there are lots of names being tossed around still and there's that small matter of Chapman agreeing to the extension.
Heyman, Wiatt, and Sharma are definitely reliable sources. Wiatt and Sharma have a ton of connections with the FO, and Heyman is one of the national guys who usually breaks stories first along with Rosenthal and Passan.
Twitter is even more nonsensical with names and rumors than usual right now. I'd wait for a real confirmation from someone reputable at this point before getting too worked up.
a'ite then. i mean, at least they're getting one of the best at a young/durable age even if there's a heavy price to pay for it.
i pretty much assumed this would be one of the last kinds of things they'd do...give up a top prospect (probably the best in the system) to get 1/2(ish) year of a reliever followed by multiple years locked in at his market value.
i wonder if there's other players going back/forth, too.
i mean, it's not like it's a horrible thing...this is just something that seems out of profile.
Suspend him for the rest of the year and get him ready for the Schwarber era?
Sadahev Sharma says the names are done. Torres and other parts for Chapman only.