Just heard on CNN, Cubs may be up for sale

[CaliforniaRaisin]

The Cubs being sold isn't as great of an idea I think the average Cub fan thinks it is. While it's slightly possible for the payroll to increase, I think it's a lot more likely to expect a payroll decrease and the same kind of inept management running the team.

 

I agree.

 

And Dayton Moore would be wonderful, whether or not the Cubs get sold.

[Lefty]

As the first person to post this, Thread Life 2/1/06-2/16/06 (currently on page 18), I want to correct an assumption that many of you are making.

 

It is not a question of whether the current Tribune Company wants to sell the Cubs. It may very well be out of management's hands. If a financial buyer and a strategic buyer pool their resources, they will end up divying up the Trib's assets without input from the current management. I.e., there will be no "Tribune" as we now know it that will decide whether or not to sell the Cubs.

 

At the current stock price, if the credit markets can stay healthy through the summer I would say that this becomes a probabilty. A Cubs pennant wouldn't hurt either .

[NorthsideAvenger]

Ok, if the Trib sells the Cubs, who do you want as GM and Manager? (availability is a concern)

 

Dayton Moore as GM and Orel Hershiser as manager.

 

I'd prefer Mark Shapiro as GM and Buck Showalter as manager (at least short-term) .

[Jehrico]

Ok, if the Trib sells the Cubs, who do you want as GM and Manager? (availability is a concern)

 

Dayton Moore as GM and Orel Hershiser as manager.

 

I'd prefer Mark Shapiro as GM and Buck Showalter as manager (at least short-term) .

 

No thanks to Buck Showalter...I'd take just about anyone but him.

[katway]

The Wall Street journal article was a bit more detailed and indicated that the Tribune was not thinking about selling the Cubs because they are profitable. A 3% investor is growing impatient, but didn't mention selling the Cubs. That investor spoke of selling some of the broadcasting operations and taking the company private.

 

In any event, here's some of what was mention in the article with respect to the Cubs:

 

...Selling the Cubs is tempting. While the club hasn't won a World Series since 1908, its legendary Wrigley Field home is packed for most games. Estimates put the team's value at around $500 million. Tribune bought the Cubs in 1981 for $21 million...

But the Cubs and... make money... Mr. FitzSimons says he is reluctant to dump any of them, especially considering the probable tax bite a sale would entail...

"To sell at the bottom, when potential buyers aren't necessarily willing to pay a premium price that would make up for the tax hit, wouldn't be wise," he says.

[Soul]

Since we're talking about the sale of things on this thread, I heard yesterday that Bud Light got naming rights to the bleachers. Expect Len to be uttering "the Bud Light bleachers" quite a bit this year.

 

 

....and, shockingly and hopefully falsely, I was driving into work and heard someone on the SCORE say they sold naming rights to Wrigley itself, too. Again---I was just listening and heard it cross my ears; I'm not saying it's true yet or anything.

[Cubfanintheknow]

Since we're talking about the sale of things on this thread, I heard yesterday that Bud Light got naming rights to the bleachers. Expect Len to be uttering "the Bud Light bleachers" quite a bit this year.

 

 

....and, shockingly and hopefully falsely, I was driving into work and heard someone on the SCORE say they sold naming rights to Wrigley itself, too. Again---I was just listening and heard it cross my ears; I'm not saying it's true yet or anything.

 

Yes, it is now going to be referred to as the "Bud Light Bleachers."

 

And the naming rights to Wrigley Field? APRIL FOOLS!!!

[Soul]

Since we're talking about the sale of things on this thread, I heard yesterday that Bud Light got naming rights to the bleachers. Expect Len to be uttering "the Bud Light bleachers" quite a bit this year.

 

 

....and, shockingly and hopefully falsely, I was driving into work and heard someone on the SCORE say they sold naming rights to Wrigley itself, too. Again---I was just listening and heard it cross my ears; I'm not saying it's true yet or anything.

 

Yes, it is now going to be referred to as the "Bud Light Bleachers."

 

And the naming rights to Wrigley Field? APRIL FOOLS!!!

 

I *did* think of that :oops:

 

It's only March 31st though. Is it one-day-early April Fools?!?

[CubbieRich]

[Cubbie Rich]Posted: Wed Mar 01, 2006 6:29 am Post subject: Cubs Sell Bleachers Naming Rights

 

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Our cash-strapped Northside franchise has been looking for other revenue streams because they are so poor. Now they have sold the naming rights(I never knew they existed) for the bleachers to Anheuser-Busch. The bleachers will now have some mention of Bud-Light. Although there will be no signage inside the field or outside on the brick, there will be signage between the gate and exit. There is also a definite possibility that the radio/tv crews will mention it. Something like: "Aramis drives the ball, deep to left..it's into the Bud-Light bleachers for a home run."

[badgercub]

The Cubs are a pretty small portion of the Tribunes assets and revenues, and are not a part of their core business. If enough investors get fed up with it, they will be sold. As far as Mark Cuban buying them, don't get your hopes up. Cuban is a shrewd businessman and when he bought the Mavs, he got them for a song. I doubt he would want to pay a hefty premium that the price tag will most likely include.

[Cubfanintheknow]

The Cubs are a pretty small portion of the Tribunes assets and revenues, and are not a part of their core business. If enough investors get fed up with it, they will be sold. As far as Mark Cuban buying them, don't get your hopes up. Cuban is a shrewd businessman and when he bought the Mavs, he got them for a song. I doubt he would want to pay a hefty premium that the price tag will most likely include.

 

There are several other entities the Tribune could sell before it it would sell the Cubs. Why sell one of the more profitable arms of your corporation?

[badgercub]

The Cubs are a pretty small portion of the Tribunes assets and revenues, and are not a part of their core business. If enough investors get fed up with it, they will be sold. As far as Mark Cuban buying them, don't get your hopes up. Cuban is a shrewd businessman and when he bought the Mavs, he got them for a song. I doubt he would want to pay a hefty premium that the price tag will most likely include.

 

There are several other entities the Tribune could sell before it it would sell the Cubs. Why sell one of the more profitable arms of your corporation?

 

because the Cubs are not a part of their core business. I think they would sell off some of their peripheral businesses and concentrate on what it is they do best, which is media.

[Cubfanintheknow]

The Cubs are a pretty small portion of the Tribunes assets and revenues, and are not a part of their core business. If enough investors get fed up with it, they will be sold. As far as Mark Cuban buying them, don't get your hopes up. Cuban is a shrewd businessman and when he bought the Mavs, he got them for a song. I doubt he would want to pay a hefty premium that the price tag will most likely include.

 

There are several other entities the Tribune could sell before it it would sell the Cubs. Why sell one of the more profitable arms of your corporation?

 

because the Cubs are not a part of their core business. I think they would sell off some of their peripheral businesses and concentrate on what it is they do best, which is media.

 

So... "We're going to sell off the Cubs, even though they're a big money maker for us. And we're sticking with what got us here--our newspapers, even though we're running into heavy competition with the Internet, which is draining our circulation. We're also keeping our local television stations across the country. Yes, there are more viewing options than ever before, but we think the WB is going to turn it all around for us."

 

Selling the Cubs may stop the bleeding at Tribune Co. But it would only be temporary.

[UBlink]

Selling the Cubs may stop the bleeding at Tribune Co. But it would only be temporary.

 

Well maybe they should sell the media and keep the Cubs.

[badgercub]

The Cubs are a pretty small portion of the Tribunes assets and revenues, and are not a part of their core business. If enough investors get fed up with it, they will be sold. As far as Mark Cuban buying them, don't get your hopes up. Cuban is a shrewd businessman and when he bought the Mavs, he got them for a song. I doubt he would want to pay a hefty premium that the price tag will most likely include.

 

There are several other entities the Tribune could sell before it it would sell the Cubs. Why sell one of the more profitable arms of your corporation?

 

because the Cubs are not a part of their core business. I think they would sell off some of their peripheral businesses and concentrate on what it is they do best, which is media.

 

So... "We're going to sell off the Cubs, even though they're a big money maker for us. And we're sticking with what got us here--our newspapers, even though we're running into heavy competition with the Internet, which is draining our circulation. We're also keeping our local television stations across the country. Yes, there are more viewing options than ever before, but we think the WB is going to turn it all around for us."

 

Selling the Cubs may stop the bleeding at Tribune Co. But it would only be temporary.

 

The Cubs are not keeping the Trib afloat.lol They are a very small stream of revenue for a multi billion dollar corporation. Yes, I think they should concentrate on what it is they do best which is media, find new ideas to generate revenue from their CORE business, which does not include the Cubs. If they don't turn around their core business it really doesn't matter what the Cubs bring in.

 

Also, WB is a blip on their screen. Newspapers are their business that is what they need to focus on. Incorporate the digital media, internet into their businessplan.

[Cubfanintheknow]

The Cubs are a pretty small portion of the Tribunes assets and revenues, and are not a part of their core business. If enough investors get fed up with it, they will be sold. As far as Mark Cuban buying them, don't get your hopes up. Cuban is a shrewd businessman and when he bought the Mavs, he got them for a song. I doubt he would want to pay a hefty premium that the price tag will most likely include.

 

There are several other entities the Tribune could sell before it it would sell the Cubs. Why sell one of the more profitable arms of your corporation?

 

because the Cubs are not a part of their core business. I think they would sell off some of their peripheral businesses and concentrate on what it is they do best, which is media.

 

So... "We're going to sell off the Cubs, even though they're a big money maker for us. And we're sticking with what got us here--our newspapers, even though we're running into heavy competition with the Internet, which is draining our circulation. We're also keeping our local television stations across the country. Yes, there are more viewing options than ever before, but we think the WB is going to turn it all around for us."

 

Selling the Cubs may stop the bleeding at Tribune Co. But it would only be temporary.

 

The Cubs are not keeping the Trib afloat.lol They are a very small stream of revenue for a multi billion dollar corporation. Yes, I think they should concentrate on what it is they do best which is media, find new ideas to generate revenue from their CORE business, which does not include the Cubs. If they don't turn around their core business it really doesn't matter what the Cubs bring in.

 

Also, WB is a blip on their screen. Newspapers are their business that is what they need to focus on. Incorporate the digital media, internet into their businessplan.

 

Believe me, I understand what you're saying. I'm just incredibly skeptical it will happen. I think the Cubs are too closely affiliated with WGN-TV, WGN radio and--even though they hate to admit it--the Chicago Tribune to be sold off. Other entities will find their way to the chopping block before the Cubs do.

[jjgman21]

I don't know alot about finance and investing, but I do know that the past decade and a half has been one of intense media conglomeration. relatively speaking, the Tribune is a small peanuts operation in the media world. if more media conglomeration is in the future, which it is considering Republican efforts to make it happen, and print media continues to struggle, which it will, don't be surprised to see the Trib merge or get bought up by one of the 6 or 7 companies that already control 98% of the media in this country.

 

what that does for the Trib's willingness to sell or hang onto the Cubs I do not know.

[badgercub]

The Cubs are a pretty small portion of the Tribunes assets and revenues, and are not a part of their core business. If enough investors get fed up with it, they will be sold. As far as Mark Cuban buying them, don't get your hopes up. Cuban is a shrewd businessman and when he bought the Mavs, he got them for a song. I doubt he would want to pay a hefty premium that the price tag will most likely include.

 

There are several other entities the Tribune could sell before it it would sell the Cubs. Why sell one of the more profitable arms of your corporation?

 

because the Cubs are not a part of their core business. I think they would sell off some of their peripheral businesses and concentrate on what it is they do best, which is media.

 

So... "We're going to sell off the Cubs, even though they're a big money maker for us. And we're sticking with what got us here--our newspapers, even though we're running into heavy competition with the Internet, which is draining our circulation. We're also keeping our local television stations across the country. Yes, there are more viewing options than ever before, but we think the WB is going to turn it all around for us."

 

Selling the Cubs may stop the bleeding at Tribune Co. But it would only be temporary.

 

The Cubs are not keeping the Trib afloat.lol They are a very small stream of revenue for a multi billion dollar corporation. Yes, I think they should concentrate on what it is they do best which is media, find new ideas to generate revenue from their CORE business, which does not include the Cubs. If they don't turn around their core business it really doesn't matter what the Cubs bring in.

 

Also, WB is a blip on their screen. Newspapers are their business that is what they need to focus on. Incorporate the digital media, internet into their businessplan.

 

Believe me, I understand what you're saying. I'm just incredibly skeptical it will happen. I think the Cubs are too closely affiliated with WGN-TV, WGN radio and--even though they hate to admit it--the Chicago Tribune to be sold off. Other entities will find their way to the chopping block before the Cubs do.

 

I don't know that it is going to happen anytime soon, I am just making the case as to why they should do it, and why it may happen. Again the only thing that is slowing this down is the 450+ million dollar capital gain they would have to pay taxes on.

[Cubfanintheknow]

The Cubs are a pretty small portion of the Tribunes assets and revenues, and are not a part of their core business. If enough investors get fed up with it, they will be sold. As far as Mark Cuban buying them, don't get your hopes up. Cuban is a shrewd businessman and when he bought the Mavs, he got them for a song. I doubt he would want to pay a hefty premium that the price tag will most likely include.

 

There are several other entities the Tribune could sell before it it would sell the Cubs. Why sell one of the more profitable arms of your corporation?

 

because the Cubs are not a part of their core business. I think they would sell off some of their peripheral businesses and concentrate on what it is they do best, which is media.

 

So... "We're going to sell off the Cubs, even though they're a big money maker for us. And we're sticking with what got us here--our newspapers, even though we're running into heavy competition with the Internet, which is draining our circulation. We're also keeping our local television stations across the country. Yes, there are more viewing options than ever before, but we think the WB is going to turn it all around for us."

 

Selling the Cubs may stop the bleeding at Tribune Co. But it would only be temporary.

 

The Cubs are not keeping the Trib afloat.lol They are a very small stream of revenue for a multi billion dollar corporation. Yes, I think they should concentrate on what it is they do best which is media, find new ideas to generate revenue from their CORE business, which does not include the Cubs. If they don't turn around their core business it really doesn't matter what the Cubs bring in.

 

Also, WB is a blip on their screen. Newspapers are their business that is what they need to focus on. Incorporate the digital media, internet into their businessplan.

 

Believe me, I understand what you're saying. I'm just incredibly skeptical it will happen. I think the Cubs are too closely affiliated with WGN-TV, WGN radio and--even though they hate to admit it--the Chicago Tribune to be sold off. Other entities will find their way to the chopping block before the Cubs do.

 

I don't know that it is going to happen anytime soon, I am just making the case as to why they should do it, and why it may happen. Again the only thing that is slowing this down is the 450+ million dollar capital gain they would have to pay taxes on.

 

Ah, yes, that little Capital Gains Tax thingie. Forgot about that one.

[Lefty]

 

Ah, yes, that little Capital Gains Tax thingie. Forgot about that one.

 

Less of a problem if a buyer buys the whole company and then sells the Cubs to help finance the purchase.

[badgercub]

 

Ah, yes, that little Capital Gains Tax thingie. Forgot about that one.

 

Less of a problem if a buyer buys the whole company and then sells the Cubs to help finance the purchase.

 

They would need a lot more financing than the measley 500 million or so the Cubs would bring in. Like I have said the Cubs are a very small part of the Trib. The Trib has a current market cap of approx. 8.5 billion dollars and is trading near a 52 week low, add in a premium to get an offer accepted and you are looking at a price tag of over 10 billion that is if the stock price wouldn't go up on speculation that the company is for sale, which it is not. Using the 52 week high of the stock price and you are looking at a price tag of of closer to 15 billion.

[Lefty]

 

Ah, yes, that little Capital Gains Tax thingie. Forgot about that one.

 

Less of a problem if a buyer buys the whole company and then sells the Cubs to help finance the purchase.

 

They would need a lot more financing than the measley 500 million or so the Cubs would bring in. Like I have said the Cubs are a very small part of the Trib. The Trib has a current market cap of approx. 8.5 billion dollars and is trading near a 52 week low, add in a premium to get an offer accepted and you are looking at a price tag of over 10 billion that is if the stock price wouldn't go up on speculation that the company is for sale, which it is not. Using the 52 week high of the stock price and you are looking at a price tag of of closer to 15 billion.

 

A financial buyer will borrow 80% of the purchase price. With deductible interest there won't be taxes for awhile.

 

Albertson's was in an auction which was public knowledge. The bid was about 25% above it's low. There is so much money available in Private Equity, behemoths like FOX and Viacom out there, this looks to me like it will happen in some form.

[badgercub]

 

Ah, yes, that little Capital Gains Tax thingie. Forgot about that one.

 

Less of a problem if a buyer buys the whole company and then sells the Cubs to help finance the purchase.

 

They would need a lot more financing than the measley 500 million or so the Cubs would bring in. Like I have said the Cubs are a very small part of the Trib. The Trib has a current market cap of approx. 8.5 billion dollars and is trading near a 52 week low, add in a premium to get an offer accepted and you are looking at a price tag of over 10 billion that is if the stock price wouldn't go up on speculation that the company is for sale, which it is not. Using the 52 week high of the stock price and you are looking at a price tag of of closer to 15 billion.

 

A financial buyer will borrow 80% of the purchase price. With deductible interest there won't be taxes for awhile.

 

Albertson's was in an auction which was public knowledge. The bid was about 25% above it's low. There is so much money available in Private Equity, behemoths like FOX and Viacom out there, this looks to me like it will happen in some form.

 

The numbers I used were very conservative, the Trib is only priced at 1.6 times book value right now. It is trading at a deep discount right now.