Re: Peavy High on Cubs Wish List

[17 Seconds]

I'm not gonna panic until I have to. I think it would be weird for a lifetime Cubs fan to buy the Cubs and then slash payroll and screw the franchise over.

 

I don't think it would be about that. From the articles that came out a couple weeks ago on those business websites, it sounds like he just can't afford it

 

Then why spend 3/4 of your family net worth on a baseball team?

 

Here's one of the articles I was talking about...

 

This is from a Crain's Business Report:

 

Cubs buyer won't swing for fences

By: Mike Colias and Ann Saphir January 26, 2009

 

Don't expect an early-inning spending spree from Thomas Ricketts if the bond salesman becomes the owner of the Chicago Cubs by opening day.

 

Mr. Ricketts and his family plan to borrow up to half the $900 million they have offered for the ball club in a deal that would set a record for a Major League franchise.

 

Even if he finds willing lenders in the coming weeks amid tight credit markets, annual debt payments could soak up much of the team's cash flow — limiting his ability to invest significantly in the team or its ballpark.

 

The amount Mr. Ricketts would be able to spend on Wrigley Field renovations or star players seems to depend on how much more of their own money he and his family are willing to sink into his baseball fantasy. Mr. Ricketts is likely to search for new revenue streams, but that will take time.

 

"They'll have to find ways to grow revenue," says J. C. Bradbury, a sports economist at Kennesaw State University in Georgia. "They'll probably be borrowing from themselves for a while."

 

The Ricketts family expects to turn a small profit or break even while maintaining or boosting payroll, according to a person involved in the deal.

 

Tribune Co. last week selected the family — a billionaire Omaha clan that founded discount brokerage TD Ameritrade — over two other bidders. The family likely will spend the next several weeks working to line up loans before Tribune submits the proposal to Major League Baseball owners for approval. The media company insisted on a debt-heavy deal for tax reasons: The more debt used to finance the transaction, the less Tribune would have to pay in capital-gains tax.

 

DEEP INTO DEBT

 

Mr. Ricketts could finance as much as half the deal — $450 million — with borrowed money, according to a person familiar with the offer. That would saddle him with up to $45 million in annual debt payments, far more than the $31 million in cash flow the team generated in 2007. And costs have climbed since then: The team's payroll rose 20% last year to $130 million.

 

Another possible source of cash is the 25% stake in regional cable channel Comcast SportsNet, which was included in the deal. The channel, which televises Cubs games and other local sports, doesn't disclose how much cash it generates for its owners.

 

Mr. Ricketts hasn't spoken publicly about the deal since Thursday night, when he said that he and his family "share the goal of Cubs fans everywhere to win a World Series and build the consistent championship tradition that the fans deserve."

 

A family spokesman says, "It would be inappropriate and inaccurate to speculate while negotiations are ongoing for the purchase of the Cubs."

 

But the 43-year-old CEO of Chicago-based Incapital LLC seems aware of the financial realities: The avid Cubs fan is in no rush to undertake a big Wrigley renovation, according to a person familiar with Mr. Ricketts' thinking. He is sensitive to the 95-year-old ballpark's historic character and favors setting aside money over many years for a major renovation at least five years out, the source says.

 

Waiting on a renovation that could include lucrative corporate suites would leave Mr. Ricketts groping for new sources of revenue just as the recession makes it harder to raise ticket prices or sign new advertising or corporate sponsorships.

 

Relying on the family's wealth also could pose challenges given the flagging stock market, which has eroded the value of their TD Ameritrade stock holdings from $2.4 billion last summer to $1.5 billion.

[UMFan83]

I'm not gonna panic until I have to. I think it would be weird for a lifetime Cubs fan to buy the Cubs and then slash payroll and screw the franchise over.

 

I don't think it would be about that. From the articles that came out a couple weeks ago on those business websites, it sounds like he just can't afford it

 

Well that's what I meant. Why would he buy the Cubs if he couldn't maintain the team as it is. He saw the books, he knows the Cubs have a large payroll and several long term contracts to deal with.

[Hairyducked Idiot]

I'm not gonna panic until I have to. I think it would be weird for a lifetime Cubs fan to buy the Cubs and then slash payroll and screw the franchise over.

 

I don't think it would be about that. From the articles that came out a couple weeks ago on those business websites, it sounds like he just can't afford it

 

Well that's what I meant. Why would he buy the Cubs if he couldn't maintain the team as it is. He saw the books, he knows the Cubs have a large payroll and several long term contracts to deal with.

 

Because he's a Cubs fan and wants to own the Cubs.

 

If I had a chance to own the Cubs but knew I'd have to reduce them to a $60 million dollar payroll, the only hard part would be deciding whether my first response to the complaints would be a rude phrase or a rude gesture.

[17 Seconds]

I'm not gonna panic until I have to. I think it would be weird for a lifetime Cubs fan to buy the Cubs and then slash payroll and screw the franchise over.

 

I don't think it would be about that. From the articles that came out a couple weeks ago on those business websites, it sounds like he just can't afford it

 

Well that's what I meant. Why would he buy the Cubs if he couldn't maintain the team as it is. He saw the books, he knows the Cubs have a large payroll and several long term contracts to deal with.

 

Well nobody said anything about reducing payroll. We're talking about adding more big contracts

[UMFan83]

I'm not gonna panic until I have to. I think it would be weird for a lifetime Cubs fan to buy the Cubs and then slash payroll and screw the franchise over.

 

I don't think it would be about that. From the articles that came out a couple weeks ago on those business websites, it sounds like he just can't afford it

 

Well that's what I meant. Why would he buy the Cubs if he couldn't maintain the team as it is. He saw the books, he knows the Cubs have a large payroll and several long term contracts to deal with.

 

Well nobody said anything about reducing payroll. We're talking about adding more big contracts

 

Right now we are. If Rich Harden pitches awesome this year and the economy is still in the crapper, does the new owner resign him or replace his salary?

[UMFan83]

I'm not gonna panic until I have to. I think it would be weird for a lifetime Cubs fan to buy the Cubs and then slash payroll and screw the franchise over.

 

I don't think it would be about that. From the articles that came out a couple weeks ago on those business websites, it sounds like he just can't afford it

 

Well that's what I meant. Why would he buy the Cubs if he couldn't maintain the team as it is. He saw the books, he knows the Cubs have a large payroll and several long term contracts to deal with.

 

Because he's a Cubs fan and wants to own the Cubs.

 

If I had a chance to own the Cubs but knew I'd have to reduce them to a $60 million dollar payroll, the only hard part would be deciding whether my first response to the complaints would be a rude phrase or a rude gesture.

 

Man I wouldn't. I'd buy the Cubs only if I knew I could help them win a title. I'd find a different place to invest my money and make a profit.

[17 Seconds]

I'm not gonna panic until I have to. I think it would be weird for a lifetime Cubs fan to buy the Cubs and then slash payroll and screw the franchise over.

 

I don't think it would be about that. From the articles that came out a couple weeks ago on those business websites, it sounds like he just can't afford it

 

Well that's what I meant. Why would he buy the Cubs if he couldn't maintain the team as it is. He saw the books, he knows the Cubs have a large payroll and several long term contracts to deal with.

 

Well nobody said anything about reducing payroll. We're talking about adding more big contracts

 

Right now we are. If Rich Harden pitches awesome this year and the economy is still in the crapper, does the new owner resign him or replace his salary?

 

That's the stuff that worries me

[UMFan83]

I'm not gonna panic until I have to. I think it would be weird for a lifetime Cubs fan to buy the Cubs and then slash payroll and screw the franchise over.

 

I don't think it would be about that. From the articles that came out a couple weeks ago on those business websites, it sounds like he just can't afford it

 

Well that's what I meant. Why would he buy the Cubs if he couldn't maintain the team as it is. He saw the books, he knows the Cubs have a large payroll and several long term contracts to deal with.

 

Well nobody said anything about reducing payroll. We're talking about adding more big contracts

 

Right now we are. If Rich Harden pitches awesome this year and the economy is still in the crapper, does the new owner resign him or replace his salary?

 

That's the stuff that worries me

 

The good news is I think he is the only halfway decent FA after 2009

[Old Style]

Can you imagine the kind of revenue the team could generate selling 2009 World Champions gear? That could range into the hundreds of millions. Easy. INVEST the money in Peavy and reap the rewards down the road.

[Banedon]

Can you imagine the kind of revenue the team could generate selling 2009 World Champions gear? That could range into the hundreds of millions. Easy. INVEST the money in Peavy and reap the rewards down the road.

 

1) Peavy = Championship? I mean I hope so...but that's quite the assumption...and easy to make when you don't have to shell out the cash to pay for the man.

 

2) The Cubs will make a bunch of money when the Cubs win the series...undoubtedly. But will they pick up a bunch of new fans? Doubt it. They sell out almost constantly, so they won't draw significantly more attendance. They'll get a one time boost from merchandising, higher ratings, and more national exposure, but I don't see how that sustains.

[Hairyducked Idiot]

Can you imagine the kind of revenue the team could generate selling 2009 World Champions gear? That could range into the hundreds of millions. Easy. INVEST the money in Peavy and reap the rewards down the road.

 

Do teams get to keep all that money? I know apparel revenue is tricky, some of it the teams keep and some is split.

[BigbadB]

Can you imagine the kind of revenue the team could generate selling 2009 World Champions gear? That could range into the hundreds of millions. Easy. INVEST the money in Peavy and reap the rewards down the road.

 

Do teams get to keep all that money? I know apparel revenue is tricky, some of it the teams keep and some is split.

 

Probably not. Merchandising and video gaming is where the NFL gets a lot of it's money to cover expenses for player's unions, pensions, etc......, which is probably somewhat the same for MLB. Also, fat cats like Selig and all of his cronies probably draw their salaries on these types of revenues.

[Garwilly]

. Edited February 12, 2009 by Garwilly

[Garwilly]

http://www.forbes.com/2006/04/17/06mlb_baseball-team-valuations-cx_mo_0420sports.html

 

 

But the league's reliance on Steinbrenner's Yankees goes far beyond revenue sharing. For example, a visit by the Yankees can increase a home team's ticket sales by as much as 25%. And the Yankees account for 27% of all league merchandise sales, the profits of which get shared equally throughout the league to the tune of more than $3 million per franchise. In effect, much of the league operates as subsidiaries of the Bronx Bombers.

[PrimeTime]

I just listened to it..Weird hearing him say that when suposedly he was dying to be a Cub all offseason.

 

MLB.com's Corey Brock passes along comments Jake Peavy made on XX Sports Radio in San Diego. Peavy said he's "dang glad" to be a Padre after an off season of trade talks. Peavy said he understands that business decisions led to a "crazy winter."

 

Brock adds that GM Kevin Towers "has not had active discussions with any team regarding Peavy" since the Winter Meetings.

[erik316wttn]

This thread should be locked as it's quite obvious he'll be a Padre to start the season.

[Jehrico]

This thread should be locked as it's quite obvious he'll be a Padre to start the season because Hendry is a completely incompetent, horrible GM, worst of all time.

Fixed it for ya. We all know that's what you meant. ;)

[erik316wttn]

This thread should be locked as it's quite obvious he'll be a Padre to start the season because Hendry is a completely incompetent, horrible GM, worst of all time.

Fixed it for ya. We all know that's what you meant. ;)

 

Yeah.... you got me. :glare:

[Banedon]

This thread should be locked as it's quite obvious he'll be a Padre to start the season.

 

The Brian Roberts thread lived until Opening Day. So long as this thread doesn't go off the deep end, we'll let this go till then.

[UMFan83]

This thread should be locked as it's quite obvious he'll be a Padre to start the season.

 

The Brian Roberts thread lived until Opening Day. So long as this thread doesn't go off the deep end, we'll let this go till then.

 

Yeah but there were still reports up until the last week that there was hope of a deal getting done. There hasn't been any sort of report in a week.

[Schwarber Fan]

"Dang glad to be a Padre"? More like "Dang Glad this saga is over."

 

I see no reason why he'd rather pitch for SD than us.

[Ding Dong Johnson]

This thread should be locked as it's quite obvious he'll be a Padre to start the season.

 

The Brian Roberts thread lived until Opening Day. So long as this thread doesn't go off the deep end, we'll let this go till then.

you're using the term "lived" rather loosely

[Banedon]

This thread should be locked as it's quite obvious he'll be a Padre to start the season.

 

The Brian Roberts thread lived until Opening Day. So long as this thread doesn't go off the deep end, we'll let this go till then.

you're using the term "lived" rather loosely

 

Very true.

[Bote McBoteface]

This is the only time that I'm fully in favor of closing an NSBB topic. This topic teases me. :[

[Old Style]

Any bets as to who will be the 2010 player that we get all jacked up about adding but never actually seal the deal?

 

Roberts ---> Peavy ---> ?????