Cubs could be for sale soon

[Lefty]

Tribune stock made a seven-year low this morning. All newspaper stocks are in the dumps. There has been some activity with Private Equity groups negotiating to buy other large newspaper chains. Tribune's market capitalization is about $8.5 billion.

 

It is very easy to foresee a bid by a syndicate of Private Equity Groups and another media company. For those in the Chicago area, Jewel's parent company just agreed to be bought out by a syndicate involving two Private Equity groups and the CVS drugstore chain. The market capitalization of that stock before the deal was announced was not much below where Tribune is now. And I believe Tribune has less debt than Jewel's parent. In other words, it wouldn't even be a big deal (in a financial sense).

 

My point is that once these entities get their hands on the Tribune, the Cubs would be a prime candidate for sale to pay down the purchase price of the assets that these entities really want, the media properties.

[Sweet Swinging Billy]

Lefty wrote: "My point is that once these entities get their hands on the Tribune, the Cubs would be a prime candidate for sale to pay down the purchase price of the assets that these entities really want, the media properties".

 

---we can only hope and pray this happens. I just wish someone like Jerry Conegelio (sp), Mark Cuban, or someone else would make an offer.

 

--#26 Sweet Swinging Billy Williams (Formerly ITex)

[UMFan83]

Lefty wrote: "My point is that once these entities get their hands on the Tribune, the Cubs would be a prime candidate for sale to pay down the purchase price of the assets that these entities really want, the media properties".

 

---we can only hope and pray this happens. I just wish someone like Jerry Conegelio (sp), Mark Cuban, or someone else would make an offer.

 

--#26 Sweet Swinging Billy Williams (Formerly ITex)

 

Mark Cuban was on AM 1000 yesterday and mentioned a desire to buy the Cubs. He said something about wanting to take a shot with everyone on Waveland after every Cubs win

[daske17]

But if the Trib sells the Cubs, it loses one of its biggest profit centers., not only from the team and its revenue but all broadcast and print coverage the team generates and supplies to WGN/Chicago Tribune/CLTV.

 

As much as I would like the Trib to sell the Cubs to someone like a Mark Cuban, I just can't imagine it happening.

[Mark Priors Calves]

What ever happened with the billion dollar tax the Trib. Co. owed?

[Lefty]

But if the Trib sells the Cubs, it loses one of its biggest profit centers., not only from the team and its revenue but all broadcast and print coverage the team generates and supplies to WGN/Chicago Tribune/CLTV.

 

As much as I would like the Trib to sell the Cubs to someone like a Mark Cuban, I just can't imagine it happening.

 

But it's not the old Tribune anymore. Another media company won't necessarily need the Cubs to generate content. And depending on the leverage employed by a financial buyer, the profit doesn't matter either.

[erik316wttn]

How I've waited for the day the Cubs would be for sale.

 

This wouldn't be for a few years if it happens, though.

[Butterscup1679666578]

Lefty wrote: "My point is that once these entities get their hands on the Tribune, the Cubs would be a prime candidate for sale to pay down the purchase price of the assets that these entities really want, the media properties".

 

---we can only hope and pray this happens. I just wish someone like Jerry Conegelio (sp), Mark Cuban, or someone else would make an offer.

 

--#26 Sweet Swinging Billy Williams (Formerly ITex)

 

Mark Cuban was on AM 1000 yesterday and mentioned a desire to buy the Cubs. He said something about wanting to take a shot with everyone on Waveland after every Cubs win

 

That man is my hero.

[hardcorecubfan]

so if the Pittsburgh Stealers are worth 625 million according to ESPN last night, then what are the Chicago Cubs

[wekse]

so if the Pittsburgh Stealers are worth 625 million according to ESPN last night, then what are the Chicago Cubs

 

losers

[goonys evil twin]

so if the Pittsburgh Stealers are worth 625 million according to ESPN last night, then what are the Chicago Cubs

 

One doesn't have anything to do with the other. NFL team value blows away MLB team value.

[katway]

But if the Trib sells the Cubs, it loses one of its biggest profit centers., not only from the team and its revenue but all broadcast and print coverage the team generates and supplies to WGN/Chicago Tribune/CLTV.

 

As much as I would like the Trib to sell the Cubs to someone like a Mark Cuban, I just can't imagine it happening.

 

I tend to agree. As long as there is a healthy profit going forward, then a Tribune purchaser may chose to retain the asset. The likelihood of a national media outlet retaining the Cubs is further increased by the fact that the Cubs have a rare national following that raises there value to a national media outlet.

[CubinNY]

But if the Trib sells the Cubs, it loses one of its biggest profit centers., not only from the team and its revenue but all broadcast and print coverage the team generates and supplies to WGN/Chicago Tribune/CLTV.

 

As much as I would like the Trib to sell the Cubs to someone like a Mark Cuban, I just can't imagine it happening.

 

I tend to agree. As long as there is a healthy profit going forward, then a Tribune purchaser may chose to retain the asset. The likelihood of a national media outlet retaining the Cubs is further increased by the fact that the Cubs have a rare national following that raises there value to a national media outlet.

 

I don't know much but I think the Cubs are not that profitable from a coprorate perspective. I think I read something to the extent that they saw a profit of 4 million dollars in 2003. That is not big money.

 

Most of the owners own teams not to make money but as a vanity project. I think the era of corporate baseball will end soon. They just don't make enough money.

[Garwilly]

so if the Pittsburgh Stealers are worth 625 million according to ESPN last night, then what are the Chicago Cubs

 

From Forbes:

 

http://www.forbes.com/2005/09/01/sports-football-gambling-cz_05nfland.html

 

 

16(in NFL) Pittsburgh Steelers 820 million

 

6 (in MLB) Chicago Cubs 398 Million

[Lefty]

How I've waited for the day the Cubs would be for sale.

 

This wouldn't be for a few years if it happens, though.

 

If it's going to happen the way I envision, it will be in this stock market cycle. That is sooner rather than later.

[daske17]

I tend to agree. As long as there is a healthy profit going forward, then a Tribune purchaser may chose to retain the asset. The likelihood of a national media outlet retaining the Cubs is further increased by the fact that the Cubs have a rare national following that raises there value to a national media outlet.

 

I don't know much but I think the Cubs are not that profitable from a coprorate perspective. I think I read something to the extent that they saw a profit of 4 million dollars in 2003. That is not big money.

 

Most of the owners own teams not to make money but as a vanity project. I think the era of corporate baseball will end soon. They just don't make enough money.

 

I seem to remember a controversy over that amount not too long ago. It had something to do with Tribune hiding various profits from different revenue streams associated with the team (TV, radio, scalping, er, I mean ticket brokering). I can't believe that the Cubs only made 4 million.

[wolf stansson]

Cubes is the man. If he bought the Cubs, I would be nervous.

[Ding Dong Johnson]

Cubes is the man. If he bought the Cubs, I would be nervous.

 

Ya hear that Mark? The Cards is runnin scared...

[fibro]

Some interesting things form Garwilly's Forbes link:

 

The Cubbies are trying to get the Landmarks Commission to allow the team to install a 10-by-3 foot rotating advertising sign just to the right of home plate. The sign could generate up to $5 million in annual revenue for the Cubs

 

Five million in revenue for a sign!

 

1-Yr Value Chg. 11%

Ann. Value Chg.2 13%

Debt/Value3 10%

Revenue $170 mil

Operating Income4 $11.4 mil

Player Expenses5 $106 mil

Gate Receipts6 $81 mil

 

So according to Forbes the Cubs made 11.4 million

 

Player-costs-to-win ratio 77

 

This compares the number of wins per player payroll relative to the rest of the MLB. Postseason wins count twice as much as regular season wins. So 100 would be average so 77 not good but better than the Yankees 52. These are 2004 numbers.

[Elrhino]

Cuban wanted to buy the Pirates, as he's been a lifelong Pirate fan. He backed out and jokingly (or perhaps not so jokingly) claims his wife threatened divorce if he bought another professional sports franchise.

 

Maybe if the Mavs won an NBA title and he would move on to another vanity project, but other than that I don't see him owning an MLB franchise. I would love to see it though. He's supposedly a huge data geek. I could see Cuban being a huge sabermetrics believer, and would put in upper management to reflect it.

[fibro]

Maybe if the Mavs won an NBA title and he would move on to another vanity project, but other than that I don't see him owning an MLB franchise.

 

Forget Cuban if thats the case.

[Mark Priors Calves]

Some interesting things form Garwilly's Forbes link:

 

The Cubbies are trying to get the Landmarks Commission to allow the team to install a 10-by-3 foot rotating advertising sign just to the right of home plate. The sign could generate up to $5 million in annual revenue for the Cubs

 

Five million in revenue for a sign!

 

1-Yr Value Chg. 11%

Ann. Value Chg.2 13%

Debt/Value3 10%

Revenue $170 mil

Operating Income4 $11.4 mil

Player Expenses5 $106 mil

Gate Receipts6 $81 mil

 

So according to Forbes the Cubs made 11.4 million

 

Player-costs-to-win ratio 77

 

This compares the number of wins per player payroll relative to the rest of the MLB. Postseason wins count twice as much as regular season wins. So 100 would be average so 77 not good but better than the Yankees 52. These are 2004 numbers.

 

Unless the article is refering to a different sign. The Cubs already put one up before the 2005 season.

[The Voice of Reason]

Rumor has it that Paul Allen will be looking for new challenges if the Seahawks win the Super bowl.

 

 

Go Seahawks!!! :lol:

[Twiggy]

That would be neat if Cuban bought the cubs. You know he would put money into the team to go out and buy whatever player it took to win that World Series.

[oldcubsfan]

That would be neat if Cuban bought the cubs. You know he would put money into the team to go out and buy whatever player it took to win that World Series.

What makes you say that? He let Steve Nash go over money. Bad move for the Mavs. He doesn't throw his money around like you assume he would.