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.
Oh, I'm sure you're right. He's not 27-27 in saves for nothing. But, man, I hope they learned last night that he didn't throw a single pitch in the zone to KB, Contreras or Baez, and they all just kept swinging.
Sounds like a much better game than last night's fiasco in Flushing.
I'm pretty sure it looks like a sweet pitch on the way in. How many sinkers like that are there at 98 mph? I agree that they should just do a Lackey and stand their with their bat on their shoulders until he throws a strike next time, but I can see how that's hard to do.
The bullpen, on the other hand, is a mess, and Heyward is starting to piss me off.
I noticed that too. He's getting to everything, but when he gets right under it on a high flyball he looks uncomfortable
Did you expect anything different?
Wow, did they blow this game. Stupid plays by the kids in the 7th -- Almora throwing to 3rd instead of 2nd to keep the DP in order (when a DP probably wins the game) and Baez throwing to 3rd (to a backpedalling KB) instead of getting the easy 2nd out at first - cost them the game. Also, Contreras almost throws the ball into RF on a nonexistent pick-off play. And Maddon, for using Peralta in the first place. Did they do a bunch of shots in the dugout before the 7th? Unbelievably bad baseball. I thought Almora had a high baseball IQ?
men on 2nd/3rd, 0 out...and nothing.
cubs lose :(
UH OH! RALLY TIME!
Getting tired of this Heywood weak sauce
Yep, can't say I disagree with that. His first batter and resulting walk was just brutal. Reminded me of a bit of Jacque Jones spiking his throws into the ground from RF.
The use of Peralta in any
semblance of a high leveragesituation is questionable at best.
fixed that for ya.
The use of Peralta in any semblance of a high leverage situation is questionable at best. Hind sight is easy but Peralta had nothing.
make that just peralta...
a.soriano new OF fielding coach?
Why is Almora jumping up on catches?
"Tommy La Stella (hamstring) will remain on his minor league rehab assignment through at least Friday."
should be an interesting roster shuffle once these guys trickle back in. i imagine patton or peralta are on the hot seat for la stella's return.