Sale of the Cubs Update

[E.J.]

Reuters.com[/url]"] NEW YORK, July 23 (Reuters) - The Chicago Cubs franchise, being sold by media group Tribune Co. (TRB.N: Quote, Profile, Research), has attracted credible interest from about 15 parties, and a deal for the baseball team and other assets is expected to top $1 billion, according to a source familiar with the situation.

 

First-round bids are likely due after the Sept. 3 U.S. Labor Day holiday, with a winner expected to be picked in October. A deal is expected to close by the end of the year. The winner must be approved by Major League Baseball.

 

The three assets being sold -- the Cubs, the team's landmark Wrigley Field stadium and an interest in sports cable network SportsNet Chicago -- could be sold as one package or split up, the source said.

 

In addition to the 15 credible expressions of interest, another 25 or so are being sorted through by the sellers, the source said.

 

 

[Soul]

Reuters.com[/url]"] NEW YORK, July 23 (Reuters) - The Chicago Cubs franchise, being sold by media group Tribune Co. (TRB.N: Quote, Profile, Research), has attracted credible interest from about 15 parties, and a deal for the baseball team and other assets is expected to top $1 billion, according to a source familiar with the situation.

 

First-round bids are likely due after the Sept. 3 U.S. Labor Day holiday, with a winner expected to be picked in October. A deal is expected to close by the end of the year. The winner must be approved by Major League Baseball.

 

The three assets being sold -- the Cubs, the team's landmark Wrigley Field stadium and an interest in sports cable network SportsNet Chicago -- could be sold as one package or split up, the source said.

 

In addition to the 15 credible expressions of interest, another 25 or so are being sorted through by the sellers, the source said.

 

Late word is, however, that the only real contender is Mark Cuban. Originally Major League baseball had balked at the idea of Cuban owning the Cubs. They have now turned around and accepted the inevitability of the move, citing Cuban's pure awesomeness as the overriding factor.

 

 

 

Fixed to include the entire report.

[UBlink]

Reuters.com[/url]"] NEW YORK, July 23 (Reuters) - The Chicago Cubs franchise, being sold by media group Tribune Co. (TRB.N: Quote, Profile, Research), has attracted credible interest from about 15 parties, and a deal for the baseball team and other assets is expected to top $1 billion, according to a source familiar with the situation.

 

First-round bids are likely due after the Sept. 3 U.S. Labor Day holiday, with a winner expected to be picked in October. A deal is expected to close by the end of the year. The winner must be approved by Major League Baseball.

 

The three assets being sold -- the Cubs, the team's landmark Wrigley Field stadium and an interest in sports cable network SportsNet Chicago -- could be sold as one package or split up, the source said.

 

In addition to the 15 credible expressions of interest, another 25 or so are being sorted through by the sellers, the source said.

 

Late word is, however, that the only real contender is Mark Cuban. Originally Major League baseball had balked at the idea of Cuban owning the Cubs. They have now turned around and accepted the inevitability of the move, citing Cuban's pure awesomeness as the overriding factor.

 

 

 

Fixed to include the entire report.

 

I thought there was something missing the first time through,. :)

[inari]

So if I'm reading this correctly, the new owner would be in place by October, giving us a wallet for the offseason. Right?

[RammyFanny]

So if I'm reading this correctly, the new owner would be in place by October, giving us a wallet for the offseason. Right?

From what that says it seems like a winner will be picked around the world series but the winner and Zell (or whoever) reaching a deal could take a little longer (?).

[Derwood]

So if I'm reading this correctly, the new owner would be in place by October, giving us a wallet for the offseason. Right?

From what that says it seems like a winner will be picked around the world series but the winner and Zell (or whoever) reaching a deal could take a little longer (?).

 

not if Zell buys the whole thing, and then sells the team off to someone new. Could take all winter

[Brian]

First-round bids are likely due after the Sept. 3 U.S. Labor Day holiday, with a winner expected to be picked in October. A deal is expected to close by the end of the year.

 

I think it's going to be hard for Zambrano to sit around and wait for this to get worked out. From the way I understand this, I don't like the chances of Zambrano signing, or the Cubs being able to much of anything in the free agent market.

[frostwyrm]

First-round bids are likely due after the Sept. 3 U.S. Labor Day holiday, with a winner expected to be picked in October. A deal is expected to close by the end of the year.

 

If this is accurate then Z is gone. He'd be crazy to wait til the end of the year just to give one team a chance to bid. I know I wouldn't do it.

[synergy]

then they better trade Z while they can get something.

[Derwood]

then they better trade Z while they can get something.

 

no way. i'd rather ride him to the playoffs and risk losing him than trade him and miss the playoffs entirely

[vance_the_cubs_fan]

If the buyer is selected, the time frame that is between the selection of the buyer and the close of the sale will not likely affect FA signings. In many cases, what happens is they old ownership will give new ownership the say in these things.

 

So, if say an owner is chosen by the end of the World Series and that owner approved the signing of Zambrano, it would happen.

[David]

Soul gave it away by not capitalizing the 'B' in "baseball."

[CubFanPhilly]

So if I'm reading this correctly, the new owner would be in place by October, giving us a wallet for the offseason. Right?

From what that says it seems like a winner will be picked around the world series but the winner and Zell (or whoever) reaching a deal could take a little longer (?).

 

not if Zell buys the whole thing, and then sells the team off to someone new. Could take all winter

 

Zell isn't buying anything. The Trib is redeeming stock with $1 bil. in cash, the proceeds of the sale of assets and lots of financing. The whole Tribune deal hinges on having enough cash to cover the debt per the loan covenants.

 

Having that cash is dependent on selling off a significant block of assets. Foremost among those assets is the $1 bil. or so the Cubs will bring. Zell and the Tribune's management have stong incentives to make the Cubs sale happen on time.

[MustangMike]

then they better trade Z while they can get something.

 

no way. i'd rather ride him to the playoffs and risk losing him than trade him and miss the playoffs entirely

 

It's a hard proposition either way you slice it. If in the end he's going to be gone, I'd rather trade him and get high value for him right now. The problem is, no one is going to trade for him when you can sign him in the offseason right? Also, I doubt highly they'd trade their ace when in a division race in a winable division.

 

I hate to think Z will be gone, but can we compete on the open FA market with LA, NY, Boston, whoever, if we do have an owner?

[shnsajax]

then they better trade Z while they can get something.

 

no way. i'd rather ride him to the playoffs and risk losing him than trade him and miss the playoffs entirely

 

It's a hard proposition either way you slice it. If in the end he's going to be gone, I'd rather trade him and get high value for him right now. The problem is, no one is going to trade for him when you can sign him in the offseason right? Also, I doubt highly they'd trade their ace when in a division race in a winable division.

 

I hate to think Z will be gone, but can we compete on the open FA market with LA, NY, Boston, whoever, if we do have an owner?

 

At least they are all in the AL.

[dew1679666265]

then they better trade Z while they can get something.

 

no way. i'd rather ride him to the playoffs and risk losing him than trade him and miss the playoffs entirely

 

It's a hard proposition either way you slice it. If in the end he's going to be gone, I'd rather trade him and get high value for him right now. The problem is, no one is going to trade for him when you can sign him in the offseason right? Also, I doubt highly they'd trade their ace when in a division race in a winable division.

 

I hate to think Z will be gone, but can we compete on the open FA market with LA, NY, Boston, whoever, if we do have an owner?

 

At least they are all in the AL.

 

Unless by LA he means the Dodgers. :)

[Soul]

If they let Z ride and he hits the FA market and then lands, say, on the Cards? Oh man. There will be some cryin on these boards like we've rarely seen.

[C.C.]

If they let Z ride and he hits the FA market and then lands, say, on the Cards? Oh man. There will be some cryin on these boards like we've rarely seen.

 

Cards could never afford him. They never outbid anyone.

[UBlink]

Why would a new owner not want Z? If the team is more valuable with him and his new contract than it would be without him, what is the problem? Have the Cubs never considered the possibility that someone might say that their bid was contingent on keeping the existing core, and that if Z is gone their bid is now going to be lower?

[ZMovieman]

I don't have a link, but I heard this on the Score's updates around 10 AM today during work. Apparently Zell has until November 1 to completely purchase the Tribune Company, which would mean that the team would more than likely have to be sold before that date in order to offset some of the debt. Also repeated what we knew, starting price would be around $650M to $1B+.

[The Voice of Reason]

Comprehensive story from the business section of Sunday's Trib on the Cubs sale. Offers some hope for the Cuban and Ricketts camps but clearly thinks Canning is a prohibitive favorite.

 

http://www.chicagotribune.com/business/chi-sun_cubs_0729jul29,0,7362106,full.story

 

The Tribune Co. put the team up for sale in April to help fund an $8.2 billion bid to take itself private in partnership with Chicago billionaire Sam Zell, who owns a small stake in the crosstown rival White Sox. The company's financial results have been slipping since then, and with credit markets in turmoil Tribune is under heavy pressure to get the highest price it can for the Cubs.

 

The key to the club's real valuation, several bankers said, likely will be how open Major League Baseball allows the bidding to be. The owners, who control the league, famously reserve the right to veto any bidder they don't like via a stringent two-step application process. This has limited the value of franchises in the past. In the case of the Red Sox, for instance, New York's Dolan family was the highest bidder. But the league liked Henry better, and he got the nod.

 

In an e-mail, Henry predicted MLB officials also will be careful about who they choose to let bid on the Cubs.

 

Many believe private-equity kingpin John Canning, chief executive of Chicago's Madison Dearborn Partners and a minority owner of the Milwaukee Brewers, has the inside track with MLB. Canning has long been a friend of Selig and is a wealthy, well-known commodity among major league owners.

 

Canning's Chicago and baseball roots run deep, which Selig has said is an important factor in approving a Cubs owner. And sources said he has gathered around him such other longtime Chicagoans as Andrew McKenna, Pat Ryan and, possibly, Michael Krasny, founder of CDW Corp., the Vernon Hills-based computer retailer that Madison Dearborn agreed to take private in a $7 billion deal.

 

One source said Canning's strategy is to bring as many potential rivals into his group as possible. He has talked, for instance, to restaurateur Larry Levy and industrialist Craig Duchossois, who had been thought to be forming their own bid. A source familiar with his plans said Canning is in the early stages of forming a group of between 20 and 30 partners.

 

But bankers and advisers who are lining up other bidders say they are hopeful two factors will prevent the league from tamping down a Cubs auction: The presence on the selling side of a public company with a fiduciary duty to get the highest price possible, and a billionaire like Zell, who has huge clout and his own connections to baseball.

 

The two known Canning rivals are Internet billionaire Mark Cuban and the Ricketts family, founder of Ameritrade in Omaha, Nebraska.

 

Sources say there are other bidders in the wings, and the knives already are out for Cuban and the Ricketts.

 

Rivals are happy to point out that Cuban has long been a polarizing figure in the National Basketball Association and has paid $1.67 million in league fines, partly for berating referees (this sentence as published has been corrected in this text). Cuban told the Tribune recently that he doesn't put much stock in pre-auction "hearsay." But he is widely thought to be unpalatable to many baseball owners.

 

The Ricketts have their own set of hurdles. Although the family is assiduously courting league officials, and Tom Ricketts is managing the process to demonstrate local ties, others are seeking to undermine that strategy by whispering that the family's wealth resides in Omaha with Joe Ricketts.

Edited August 2, 2007 by The Voice of Reason

[nilodnayr]

First-round bids are likely due after the Sept. 3 U.S. Labor Day holiday, with a winner expected to be picked in October. A deal is expected to close by the end of the year.

 

I think it's going to be hard for Zambrano to sit around and wait for this to get worked out. From the way I understand this, I don't like the chances of Zambrano signing, or the Cubs being able to much of anything in the free agent market.

 

Ohh Brian, you're so pessimistic. Zito didn't sign until 12/28 last year.

[Magnetic Curses]

First-round bids are likely due after the Sept. 3 U.S. Labor Day holiday, with a winner expected to be picked in October. A deal is expected to close by the end of the year.

 

I think it's going to be hard for Zambrano to sit around and wait for this to get worked out. From the way I understand this, I don't like the chances of Zambrano signing, or the Cubs being able to much of anything in the free agent market.

 

but if the deal is approved, i'm betting that hendry will know how much money he'll be allowed to spend by the time the playoffs are finishing up--and he'll be given license to ink z. the new owner will doubtless understand how crucual it will be to get him signed and will also probably want to come in on a good note, not a bad one. i'm confident the deal will happen. if it doesn't, there will be a pre-formed cloud over new ownership.

[NCCubFan]

The two known Canning rivals are Internet billionaire Mark Cuban.

Looks like their proofreader was asleep on the job. :D

[seanimal]

The two known Canning rivals are Internet billionaire Mark Cuban.

Looks like their proofreader was asleep on the job. :D

 

I noticed that too.

 

It's like the quote I read somewhere: "There are three types of baseball fans: Those that understand statistics and those who don't."