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.
vogelbomb debut for tacoma (AAA SEA)... 3-3, 1bb, 1 HR, 1 double...DH'd.
while he mostly played 1st considerably more than DH for AAA CHC, DJ Peterson is probably going to see most of the time at 1st for AAA SEA.
Carl Jr.! Very nice!
Baez with another "WTF?" play trying a delayed steal with a runner on 3rd and one out.. Remarkable talent, needs to make better decisions.
m.montgomery up in the pen with a man on 2nd, 2 out, and rondon 20 pitches into the inning.
...and rondon ends it 22 pitches in with a popout to RF.
I gotta say with the crappy defense the Brewers have displayed outside of Fowler I'm pretty disappointed the offense hasn't shown more and Rizzo seems to be very swing happy lately. That said my god am I happy Madden has finally given Carl Edwards a chance after multiple times up with nothing. I don't think he could handle a starting role with his body frame but his stuff plays so well in a relief role and he seems to be able to handle high stress situations very well.
2nd at bat. Fowler is good for the Cubs run differential.
welcome back fowler.
More slow news...
Did Davey Martinez have to bring the shotgun?
glad to see almora going to AAA to get work.
.265/.291/.422 through 86PA...2hr, 7 doubles.
i don't expect too much of an improvement when he's taking over CF next year, but the team doesn't really need him right now as much as they need him to get regular work (imo).
CHITOWNMVP01: The Cubs MLB Reserve List (40-man roster) has had one slot open since 7/6 (when RHRP Joel Peralta was Designated for Assignment).
The problem with the September roster is all of the pitching changes. They should find a way to limit pitchers to twelve except for extra inning games. More pinch hitters or pinch runners do little to slow the game down and are more fun than endless calls to the bullpen. I also think the fans get cheated when they use position players to pitch because employed a half dozen pitchers with righty-lefty switches. Having as few as four positions players on the bench to start a game also leads to some pretty ugly defensive substitutions.
CHITOWNMVP01: Joe Nathan's 30-day Article XIX-C minor league rehab assignment expires tomorrow, but he doesn't have to be reinstated from the 60-day DL tomorrow.
Also, I think 40 man roster should be full, not at 39, unless I counted wrong. I'm in a hurry to leave the house.
Dexter Fowler is back! "You go, we go!"
He's being activated for tonight's game. Almora down and Montgomery replaces Patton.
Also, doesn't Nathan have to be activated tomorrow? Pitchers aren't allowed to spend more than 30 days of rehab and he was sent to rehab assignment on June 23rd. Tomorrow is July 23rd.
Yeah, last night was a bummer. I clicked on the espn Gamecast just in time to see the 5-2 score change to 5-5.
Their next 10 are Dodgers, Mets and Marlins.
Slow news day...