Cubs bidding heats up as groups, strength of bids change

[David]

http://chicagosports.chicagotribune.com/sports/baseball/cubs/chi-080829cubs-bidders,1,6727468.story

 

The makeup of the group of prospective buyers for the Chicago Cubs and the relative strength of their bids has shifted in recent weeks since the team's owner narrowed the field to five.

 

Two would-be buyers who were encouraged by Chicago-based Tribune Co. to join forces have decided to go their separate ways, and it's not clear whether they will remain in the auction. In addition to selling the team, Tribune Co., which also owns the Chicago Tribune, is selling Wrigley Field and its stake in a Chicago-based regional sports network.

 

An official with Sports Properties Acquisition Corp., a publicly traded company, confirmed Friday that the company is no longer aligned with a group led by Fred Malek, a Washington private-equity investor, and Michael Tokarz, a New York businessman who is an Illinois native.

 

Meanwhile, sources say that a bid led by Chicago businessman Thomas Ricketts is gaining momentum in the process. The next round of bids is due in early October, and by the end of the year Tribune Co. hopes to send a deal to Major League Baseball for its approval.

 

Sports Properties Acquisition is an unusual entity known as a special-purpose acquisition company, which raises money by selling stock to the public and then looks for businesses to buy. Tribune rejected the company's independent bid for the team last month but asked the company to consider working with Malek and Tokarz, whose bid was higher.

 

Oddly, they almost brush over Cuban as a bidder altogether. I had to look to find mention of him, which was surprising enough, given the fact that we had heard he was the high bidder.

 

One bidder who is not looking for partners is Ricketts. He is the point person for a family looking to make a long-term investment in the Cubs that would span generations, according to sources close to Ricketts who asked not to be identified because the sales process is ongoing. Would-be buyers had to sign confidentiality agreements with Major League Baseball and Tribune Co. as a condition of participating in the auction.

 

Ricketts' father, J. Joseph Ricketts of Omaha, founded Ameritrade, now known as TD Ameritrade, one of the largest online discount brokerages. Forbes magazine estimates the family's war chest at $2.6 billion. The Ricketts' bid matches the league's preference for deep-pocketed owners and family control, making the clan a strong candidate.

 

It's not clear, though, if Ricketts made the highest offer in the first phase of the auction that was completed last month. Tribune Co. accepted four other non-binding bids for a package of the team, the vintage stadium and the stake in Comcast SportsNet Chicago. The assets are expected to fetch at least $1 billion.

 

Others bidders include Chicago real estate executive Hersch Klaff; Mark Cuban, owner of the National Basketball Association's Dallas Mavericks, who made a fortune during the Internet boom; and a group led by New York private-equity investors Marc Utay and Leo Hindery Jr.