Ricketts Family Wins Cubs Bid

[E.J.]

http://www.chicagotribune.com/business/chi-tue-cubs-bidsjan06,0,7824205.story

 

 

Tribune Co., owner of the Chicago Cubs, is close to selecting a winning bid for the team from three finalists, according to people familiar with the sales talks.

 

The Chicago-based media conglomerate has been evaluating bids since the beginning of December and could make a decision within a week to 10 days, sources said. But one source cautioned that the process of narrowing the auction to one bidder still could be derailed, and Tribune Co. could pull the team and its landmark stadium off the market.

 

The company, which is controlled by Chicago real estate investor Sam Zell, also has not held firm to past deadlines. Zell had said he hoped to select a winning bidder by the end of 2008. A Tribune Co. spokesman declined to comment Monday night.

 

Once the winning bid is chosen, the deal is far from completion. Tribune Co. plans to enter into negotiations with the prospective buyer to work out a sale. Tight credit markets make it more difficult to obtain loans to finance a transaction that could approach $1 billion.

 

Three prospective buyers made offers for the franchise at the end of November: Chicago real estate investor Hersch Klaff; the Ricketts family, founders of online brokerage TD Ameritrade Holding Corp.; and a group led by Marc Utay, a New York private-equity investor who grew up in Chicago.

 

If the winning bidder is able to finalize a contract with Tribune Co., the buyer must be approved by three-quarters of baseball owners. It is also possible a bankruptcy court judge will have a say in the process, because Tribune Co. filed for Chapter 11 protection Dec. 8. The Cubs are not included in the filing, but the sale would generate proceeds for debtholders.

[Roast]

All dreams of cuban are gone. I know we probably knew that a while ago and i'm way late to this party. But it's still sad.

[cubswin2009]

So who do we root for?

[anabiono]

the guy who says, "Mr. Hendry. I want Peavy. Do it!"

[Dallas Green]

It is and has been Rickett's to loose since Sept. Unless something crazy happens in the next 10 days, he is your guy.

[cbbryan]

The article doesn't say anything about Tim, founder of NSBB? I though he had a bid in?

[Little Slide Rooter]

So who do we root for?

 

 

Chicago real estate investor Hersch Klaff; the Ricketts family, founders of online brokerage TD Ameritrade Holding Corp.; and a group led by Marc Utay, a New York private-equity investor who grew up in Chicago.

 

I just hope these are guys who want the team because the love it and they want to be winners for years to come, not one of those investment groups who want to spend as little money possible and let the team sink to the bottom of the heap.

[CoolHandLuke]

I just saw that Ricketts went to Creighton, so he might have affections for Hendry that the other buyers might not have. Probably not very important but I found it to be interesting.

[C.C.]

It's gonna be the Rickett's as our next owners. I'm just ready for the process to be over already. Crazy.

[UMFan83]

Speaking of Cuban, he had really long blog post today about his involvement in the sale of the Cubs. Not sure if it's worth its own thread, so I'll just post the link here:

 

http://blogmaverick.com/2009/01/06/the-cubs/

[Banedon]

Speaking of Cuban, he had really long blog post today about his involvement in the sale of the Cubs. Not sure if it's worth its own thread, so I'll just post the link here:

 

http://blogmaverick.com/2009/01/06/the-cubs/

 

Thanks for posting that. I'm really surprised he didn't mention the SEC allegations being a factor at all. Maybe it would've been if he'd gotten further in the process. In any case, what he wrote makes sense. Too bad it didn't work out.

[mdwilla]

it wouldn't shock me to watch this process fall apart and the Cubs go back to Cuban.

[Derwood]

it wouldn't shock me to watch this process fall apart and the Cubs go back to Cuban.

 

It would shock me, based on his blog piece. At this point, MLB/The Cubs didn't give him a fair shake (according to Cuban), and with the current economy, it's a bad business move.

[CubinNY]

All dreams of cuban are gone. I know we probably knew that a while ago and i'm way late to this party. But it's still sad.

[puts on tin-foil hat] The powers that be in MLB and the govt. made sure that Cuban wouldn't own a baseball team.[takes off tin-foil hat]

 

But seriously, the timing of the decision to move forward with his insider trading allegation is really suspicious.

[ConstableRabbit]

Speaking of Cuban, he had really long blog post today about his involvement in the sale of the Cubs. Not sure if it's worth its own thread, so I'll just post the link here:

 

http://blogmaverick.com/2009/01/06/the-cubs/

 

Thanks for posting that. I'm really surprised he didn't mention the SEC allegations being a factor at all. Maybe it would've been if he'd gotten further in the process. In any case, what he wrote makes sense. Too bad it didn't work out.

The way I read it was that he asked for an extension because he couldn't come up with enough cash and was told that if some of the other prospective buyers couldn't make their numbers, they would come back to Cuban.

 

I didn't see anything in there about not getting approved by owners.

[Guest]

Speaking of Cuban, he had really long blog post today about his involvement in the sale of the Cubs. Not sure if it's worth its own thread, so I'll just post the link here:

 

http://blogmaverick.com/2009/01/06/the-cubs/

 

I had no intentions of trying to outspend the Yankees or Red Sox. There was no reason to. I didnt have to beat either of those teams unless I made it to the World Series. The only teams I had to be better than were those in the National League, and more importantly, those in my division. There were no big spending rivals close to home, so the AL East could spend themselves silly. My plans were to spend to win, not to spend for spending’s sake. IMHO, the money I could save being in the 2nd tier of payroll could be invested in scouting and development. I made this clear to any and all of the owners that I spoke to across the league. Of course that didnt stop some from trying to convince some owners otherwise.

 

:(

[kujay]

All dreams of cuban are gone. I know we probably knew that a while ago and i'm way late to this party. But it's still sad.

[puts on tin-foil hat] The powers that be in MLB and the govt. made sure that Cuban wouldn't own a baseball team.[takes off tin-foil hat]

 

But seriously, the timing of the decision to move forward with his insider trading allegation is really suspicious.

 

I don't think you're in "tin foil hat" territory with that one. That seems to be exactly what happened, and I don't think they would be apologetic about it.

[CubColtPacer]

All dreams of cuban are gone. I know we probably knew that a while ago and i'm way late to this party. But it's still sad.

[puts on tin-foil hat] The powers that be in MLB and the govt. made sure that Cuban wouldn't own a baseball team.[takes off tin-foil hat]

 

But seriously, the timing of the decision to move forward with his insider trading allegation is really suspicious.

 

I don't think you're in "tin foil hat" territory with that one. That seems to be exactly what happened, and I don't think they would be apologetic about it.

 

And they forced Cuban to write a long blog entry about how he voluntarily pulled out because of credit concerns? I might consider believing it if Cuban hadn't come right out and told us why he is no longer in the bidding, and it had absolutely nothing to do with the Cubs or anybody else forcing him out.

[jersey cubs fan]

All dreams of cuban are gone. I know we probably knew that a while ago and i'm way late to this party. But it's still sad.

[puts on tin-foil hat] The powers that be in MLB and the govt. made sure that Cuban wouldn't own a baseball team.[takes off tin-foil hat]

 

But seriously, the timing of the decision to move forward with his insider trading allegation is really suspicious.

 

I don't think you're in "tin foil hat" territory with that one. That seems to be exactly what happened, and I don't think they would be apologetic about it.

 

You think the SEC stepped up to prevent his bid?

[CubinNY]

All dreams of cuban are gone. I know we probably knew that a while ago and i'm way late to this party. But it's still sad.

[puts on tin-foil hat] The powers that be in MLB and the govt. made sure that Cuban wouldn't own a baseball team.[takes off tin-foil hat]

 

But seriously, the timing of the decision to move forward with his insider trading allegation is really suspicious.

 

I don't think you're in "tin foil hat" territory with that one. That seems to be exactly what happened, and I don't think they would be apologetic about it.

 

And they forced Cuban to write a long blog entry about how he voluntarily pulled out because of credit concerns? I might consider believing it if Cuban hadn't come right out and told us why he is no longer in the bidding, and it had absolutely nothing to do with the Cubs or anybody else forcing him out.

Both could be related. An creditor isn't likely to give the benefit of the doubt to a guy who is under investigation for insider trading. But anyway, I don't think that's what's going here.

[cubswin2009]

IMHO, the money I could save being in the 2nd tier of payroll could be invested in scouting and development.

:bye:

[Sammy Sofa]

Speaking of Cuban, he had really long blog post today about his involvement in the sale of the Cubs. Not sure if it's worth its own thread, so I'll just post the link here:

 

http://blogmaverick.com/2009/01/06/the-cubs/

 

I had no intentions of trying to outspend the Yankees or Red Sox. There was no reason to. I didnt have to beat either of those teams unless I made it to the World Series. The only teams I had to be better than were those in the National League, and more importantly, those in my division. There were no big spending rivals close to home, so the AL East could spend themselves silly. My plans were to spend to win, not to spend for spending’s sake. IMHO, the money I could save being in the 2nd tier of payroll could be invested in scouting and development. I made this clear to any and all of the owners that I spoke to across the league. Of course that didnt stop some from trying to convince some owners otherwise.

 

:(

 

That...is beyond depressing.

[shnsajax]

Speaking of Cuban, he had really long blog post today about his involvement in the sale of the Cubs. Not sure if it's worth its own thread, so I'll just post the link here:

 

http://blogmaverick.com/2009/01/06/the-cubs/

 

I had no intentions of trying to outspend the Yankees or Red Sox. There was no reason to. I didnt have to beat either of those teams unless I made it to the World Series. The only teams I had to be better than were those in the National League, and more importantly, those in my division. There were no big spending rivals close to home, so the AL East could spend themselves silly. My plans were to spend to win, not to spend for spending’s sake. IMHO, the money I could save being in the 2nd tier of payroll could be invested in scouting and development. I made this clear to any and all of the owners that I spoke to across the league. Of course that didnt stop some from trying to convince some owners otherwise.

 

:(

 

That...is beyond depressing.

 

He needs to become a minority owner with whoever wins the bid.

[Roast]

Speaking of Cuban, he had really long blog post today about his involvement in the sale of the Cubs. Not sure if it's worth its own thread, so I'll just post the link here:

 

http://blogmaverick.com/2009/01/06/the-cubs/

 

I had no intentions of trying to outspend the Yankees or Red Sox. There was no reason to. I didnt have to beat either of those teams unless I made it to the World Series. The only teams I had to be better than were those in the National League, and more importantly, those in my division. There were no big spending rivals close to home, so the AL East could spend themselves silly. My plans were to spend to win, not to spend for spending’s sake. IMHO, the money I could save being in the 2nd tier of payroll could be invested in scouting and development. I made this clear to any and all of the owners that I spoke to across the league. Of course that didnt stop some from trying to convince some owners otherwise.

 

:(

:( That's sad.

 

Oh, what could have been.

[cubswin2009]

http://www.chicagotribune.com/news/chi-cubs-intro-jan08,0,3372177.story

Tom Ricketts

Resume: Family patriarch J. Joe Ricketts became an online-stock-trading leader by founding the Ameritrade discount brokerage in Omaha. Forbes estimates the family's wealth at $2.6 billion. The bid's point person is son Tom Ricketts, who moved to Chicago in 1983 to attend college and lives in the suburbs. Two siblings, Laura Ricketts and Todd Ricketts, live in the Chicago area. The fourth, Pete Ricketts, lives in Omaha and ran for the U.S. Senate in 2006.

 

Business style: Tom Ricketts wanted to make it on his own and never worked at Ameritrade, now TD Ameritrade Holding Corp. A market maker at the Chicago Board Options Exchange and finance executive before starting investment bank Incapital LLC.

 

Cubs connection: Tom Ricketts grew up watching the team on WGN. Once lived in an apartment above a bar across the street from Wrigley Field. Met his wife in the bleachers at a Cubs game.

 

Personal: Undergraduate and MBA degrees from the University of Chicago. Married, with five children.

 

Quote: "There are a lot of people in this world that would say Tom Ricketts is their best friend," said Curt Conklin, a college roommate who has worked at Ameritrade and Incapital. "If you wanted to go have a beer, Tom was there."

Marc Utay

Business style: During the 1990s put together leveraged buyout deals in media, telecommunications and entertainment for investment banker Wasserstein Perella. A director of IMAX Corp., the large-format film company. Said to have bid on two hockey franchises without winning either.

 

Cubs connection: Grew up a Cubs fan in Glenview. Admires how the Boston Red Sox owners have expanded the franchise's entertainment and sports assets. His investor group includes media investor Leo Hindery, who once ran YES Network, the New York Yankees' TV channel.

 

Personal: Attended New Trier West High School; Rahm Emanuel, President-elect Barack Obama's chief of staff, was a classmate. On debate team and was associate editor of school newspaper. Graduated in 1977. Undergraduate and MBA degrees from the Wharton School at the University of Pennsylvania.

 

Married attorney Mindy Gildin of Long Island, N.Y., in 1988; two sons. Mother, Florence Utay, lives in Lincolnshire.

 

Quote: "He was a bright guy, a debate team guy, very opinionated," said high school classmate Ed Sherman, a former Chicago Tribune sports reporter.

Hersch Klaff

Resume: A South African who moved to Chicago in the 1970s and made his money in real estate, buying distressed retail properties. Formed Klaff Realty LP in 1982 and amassed properties in the Loop. Bought shuttered stores from Kmart, Montgomery Ward, Albertson's and Mervyns.

 

Business style: Low profile. But an aggressive dealmaker who works with private-equity firms such as Lubert-Adler Real Estate Funds and Cerberus Capital Management LP.

 

Personal: Graduated from the University of Witmatarsrand in Johannesburg with a degree in economics and accounting. Klaff and his wife, Avril, opened their Glencoe home in September as part of a Museum of Contemporary Art fundraiser, hosting a tour of their collection of South American and Israeli art, accompanied by a poolside Brazilian buffet.

 

Sports background: An avid soccer fan. A boxer in his youth while doing a required stint in South African Air Force. An exercise devotee who has been known to bicycle between meetings with papers tucked in a backpack.

 

Quote: "He loves nothing more than a good sweat," said longtime friend and fellow South African Eric Joss. Klaff often invited Joss to sit courtside at Chicago Bulls games during Michael Jordan era.

 

Go Ricketts or Utay I guess.