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.
Who is this Arrieta guy? Can I get the old one back please?
Well, this is, once again, the whole season for the Sox.
...and the Bryant RBI jinx continues in the 3rd....crap.
bryant's in the dugout filling a police report BECAUSE HE JUST GOT ROBBED.
chapman showing up and available tomorrow night.
i'm sure he'll be a bit hit. hope he doesn't choke. dude has a rifle for an arm. he'll add a bit of punch to the bullpen.
the 'crosstown classic' sure has lost it's magic with interleague. the excitement level is barely noticable...maybe it's a bit more hype in the city, itself.
Well he didn't leave a mark so its not that bad.
He choked her.
Her brother tackled him to separate him.
He cooled off by shooting his gun in the garage.
I don't have to like him on the team I follow.
And you are others are free to not give a shit about his personal misgivings if you so choose as well.
Sure, no marks and some inconsistencies in the witness's statements. But firing your gun into garage wall immediately after an argument and punching out your car window is still threatening and out of control behavior. There was certainly enough for MLB to think it warranted a 30-game suspension.
I'd prefer they be flexible with the closing situation depending on matchups. You're not really adding a lefty reliever if you use him strictly as a closer.
Stockpiling young talent isn't only for trading for someone like Chapman though. Even with an elite closer winning the World Series is basically a crap shoot so the key is to get to the playoffs as much as possible and not just mortgage everything on one year. Once you get there an elite bullpen certainly helps but the playoffs can be won by one hitter or starting pitcher getting hot (Murphy, Molina, Baumgardner) and a closer might not be able to stop that.
I'm also not crazy about press convictions. As the police report noted, there were no marks on the lady in question. There's a TMZ link (of course) to her police pictures, as well.
I think the only way this trade goes real bad is if Cubbery intervenes and Chapman is suddenly bad for some reason.
I am right there with you closing in on 60.
I don't care that much about "mortgaging" one player who is not only blocked by two guys, but is not ready to hit the majors for at least a couple years.
There is no reason why this team, this year, can't have a real shot at something NONE of us have experienced.
Further, I don't feel that even if they fall short that they have ruined their farm system.
I have made my opinion clear here, with others, Warren was shit on the Cubs save one spot start.
Trading for Warren, Warren sucking, getting Warren back for Chapman plus 3 prospects, sounds like Revenge of The Yankees on the former Boston executive. Old rivalries never die.
I pray to the heavens above Chapman doesn't suck for some reason, or he'll be booed out of town faster than a Todd Hundley revival meeting.
I'm kind of nostalgic for the Schwarber-for-Miller rumors.
This offseason, after some ridiculous playoff run and Chapman saving every game from here until the end of the postseason striking out 27/9innings, I welcome anyone to quote this thread and call me a dummy: I hate this trade, and my hate is 2 parts Chapman makes this team less likeable and 1 part that's a ridiculous overpay for 30 regular season innings and, at tops, 10 postseason innings. Already hoping they don't extend him.
btw...Thanks AZ Phil. I'm really enjoying your take on this trade.