Ricketts Offers to Share Cubs

[E.J.]

http://www.chicagobusiness.com/cgi-bin/article.pl?article_id=31637&seenIt=1

 

Tom Ricketts is offering private investors a stake in the Chicago Cubs as he works to finance a $900-million acquisition of the team by his family.

 

Crain's has learned that Mr. Ricketts — scion of the TD Ameritrade Inc. fortune — is trying to raise $100 million or more through the sale of preferred stock to wealthy individuals. Money raised from investors would reduce the amount the Ricketts family would have to borrow from banks to finance the Cubs deal.

 

The preferred shares would represent an ownership interest in the team but confer no voting privileges or other rights of control. Investors would be entitled to a 6.5% dividend on their shares, according to people familiar with the terms.

 

They also would get front-row seats at Wrigley Field, opportunities to hobnob with players and a place on an "advisory board" that would meet regularly to discuss the team's future. After 15 years, they'd get their original investment back without sharing in any appreciation in the value of the franchise over that period.

 

People close to the Ricketts group say Mr. Ricketts hopes to find five to 10 investors willing to put up $25 million apiece. Advisers are preparing an offering document outlining the investment terms. Mr. Ricketts has made only preliminary contacts with prospective investors, none of whom has agreed to invest. Through a spokesman, Mr. Ricketts declines to comment.

 

Likely prospects include the well-heeled Chicagoans who submitted bids or expressed interest in owning the Cubs when Tribune Co. put the team on the block two years ago after billionaire real estate investor Sam Zell inked a deal to take control of the struggling media company.

 

 

Seriously, this sale is never going to be completed.

[Hairyducked Idiot]

Oops, handpicked MLB guy doesn't have the cash.

[CubbieBum]

This is one of those instances where the Government really shouldn't do anything but I wish they would. I wouldn't mind them stepping in and telling Selig, Ricketts and whoever else that if you can't afford it and have to spend months getting investors then you can't have the team and the top bidder who can actually afford it gets the team. The government obviously has no grounds to do any of that but I'm so sick of being stuck in limbo and I'm not really found of a bunch of people who are only looking to turn a profit being part of the ownership. Obviously all owners want to make money but I hate having owners that money is all they care about and they won't make a couple million less profit to have a winner.

[Guest]

I'd bet Mark Cuban could give him 900m and Ricketts could park Mr. Cuban's car for him. That's the only sharing I can envision at this time.

[CubbieBum]

I'd bet Mark Cuban could give him 900m and Ricketts could park Mr. Cuban's car for him. That's the only sharing I can envision at this time.

 

Heck I bet Cuban would give a billion to get the team from Ricketts. He reportedly bid more than that IIRC so he would actually be getting the team for less.

[CubColtPacer]

I'd bet Mark Cuban could give him 900m and Ricketts could park Mr. Cuban's car for him. That's the only sharing I can envision at this time.

 

Heck I bet Cuban would give a billion to get the team from Ricketts. He reportedly bid more than that IIRC so he would actually be getting the team for less.

 

Cuban was planning on getting loans for most of the money the same way that Ricketts is. The reason that Cuban pulled out in the first place was that he didn't have enough cash to buy the team and he got worried about being able to refinance the loans he would need to take out.

[shnsajax]

I'd bet Mark Cuban could give him 900m and Ricketts could park Mr. Cuban's car for him. That's the only sharing I can envision at this time.

 

Heck I bet Cuban would give a billion to get the team from Ricketts. He reportedly bid more than that IIRC so he would actually be getting the team for less.

 

Cuban was planning on getting loans for most of the money the same way that Ricketts is. The reason that Cuban pulled out in the first place was that he didn't have enough cash to buy the team and he got worried about being able to refinance the loans he would need to take out.

 

The whole insider trading scandal was not of the best timing either.

[Banedon]

Is it possible this falls through and we have to start the bid process over again?

[Hairyducked Idiot]

Is it possible this falls through and we have to start the bid process over again?

 

Reading between the lines, yes. This is not a good time to try to drum up last-minute financing.

[jersey cubs fan]

Oops, handpicked MLB guy doesn't have the cash.

 

this isn't the handpicked MLB guy.

[Hairyducked Idiot]

Oops, handpicked MLB guy doesn't have the cash.

 

this isn't the handpicked MLB guy.

 

Really? Who was HMG? Oh wait, Canning.

 

Nevermind...

[Guest]

I don't get how Ricketts even got his foot in the door in the first round of bids to begin with.

 

His net worth is supposedly 1.4 billion and the team was looking to be sold somewhere in the neighborhood of 1 billion.

 

I know 400m is a lot of money, but it really doesn't seem like all that much money when you just spent close to a billion. Not to mention the fact that player payroll is more than 100m.

 

Unfortunately, I doubt if Cuban steps back up to the plate.

[jersey cubs fan]

I don't get how Ricketts even got his foot in the door in the first round of bids to begin with.

 

His net worth is supposedly 1.4 billion and the team was looking to be sold somewhere in the neighborhood of 1 billion.

 

I know 400m is a lot of money, but it really doesn't seem like all that much money when you just spent close to a billion. Not to mention the fact that player payroll is more than 100m.

 

Unfortunately, I doubt if Cuban steps back up to the plate.

 

A lot of Mark Cuban's net worth is tied up in Yahoo stock, which has plummeted since this process began. A lot of people saw their net worth decline substantially. I don't really understand how you can't understand how this guy got his foot in the door. He's got a ton of cash, has access to the capital markets, ties to the Chicago area and wanted to own the team. You don't have to spend $900 million to buy a $900 million team.

 

The Cubs payroll really has very little baring on this discussion, if any, that is paid for via revenues the team brings in, not the owners personal account.

[Old Style]

I'd like to buy $500 worth of the Cubs in exchange for front row seats and the chance to hob nob with players.

[Fred Hornkohl]

I'd like to buy $500 worth of the Cubs in exchange for front row seats and the chance to hob nob with players.

 

I would too.... but the offer on the table is to purchase a $25 million share for those perks. $25 million is just a little bit out of my league. [sigh]

[loukycub]

you know, if ricketts was really smart, he would open up the possibility to buy shares to the fans instead of wealthy investors ala the green bay packers. you don't think that several hundred thousand people across the country wouldn't buy a part of the cubs?

 

200,000 people buying a share of the cubs at $125 a piece gives you $25 million dollars. quite frankly i'm surprised they didn't think of this first with the type of fanbase the cubs have.

[Hairyducked Idiot]

you know, if ricketts was really smart, he would open up the possibility to buy shares to the fans instead of wealthy investors ala the green bay packers. you don't think that several hundred thousand people across the country wouldn't buy a part of the cubs?

 

200,000 people buying a share of the cubs at $125 a piece gives you $25 million dollars. quite frankly i'm surprised they didn't think of this first with the type of fanbase the cubs have.

 

What are the administration costs with running something like that?

[vance_the_cubs_fan]

I'd like to buy $500 worth of the Cubs in exchange for front row seats and the chance to hob nob with players.

 

I would too.... but the offer on the table is to purchase a $25 million share for those perks. $25 million is just a little bit out of my league. [sigh]

 

If I win tonight's powerball drawing, I'm in!

[Soul]

Next time you select a winner, better make sure he can actually pay first.

[Little Slide Rooter]

In a related story, Im offering to share my mortgage and student loans. Any takers?

[dew1679666265]

you know, if ricketts was really smart, he would open up the possibility to buy shares to the fans instead of wealthy investors ala the green bay packers. you don't think that several hundred thousand people across the country wouldn't buy a part of the cubs?

 

200,000 people buying a share of the cubs at $125 a piece gives you $25 million dollars. quite frankly i'm surprised they didn't think of this first with the type of fanbase the cubs have.

 

Problem is, he needs 5-10 investors to put forth $25 million each, according to the article. Your plan would cover just one of the investors.

[loukycub]

Problem is, he needs 5-10 investors to put forth $25 million each, according to the article. Your plan would cover just one of the investors.

 

but who is to say that it couldn't be expanded? i'm pretty sure that there are more than 200,000 cubs fans who wouldn't want to own a piece of the team. or that the price of one share could be higher than $125. both numbers could be adjusted. my point is that ricketts just going after big money investors when he could open up a very large infusion of cash by doing the same thing on a greater scale with a very loyal fanbase as well as big money investors seems kind of short-sighted to me.

 

think of it this way- if ricketts opens up the possibilities to the fanbase and they come through in a big way, those big money investors could get more money squeezed out of them by way of the fewer opportunities to invest in the team.

 

this plan is purely hypothetical, but it's one i think would work really well.

[dew1679666265]

Problem is, he needs 5-10 investors to put forth $25 million each, according to the article. Your plan would cover just one of the investors.

 

but who is to say that it couldn't be expanded? i'm pretty sure that there are more than 200,000 cubs fans who wouldn't want to own a piece of the team. or that the price of one share could be higher than $125. both numbers could be adjusted. my point is that ricketts just going after big money investors when he could open up a very large infusion of cash by doing the same thing on a greater scale with a very loyal fanbase as well as big money investors seems kind of short-sighted to me.

 

think of it this way- if ricketts opens up the possibilities to the fanbase and they come through in a big way, those big money investors could get more money squeezed out of them by way of the fewer opportunities to invest in the team.

 

this plan is purely hypothetical, but it's one i think would work really well.

 

That's a good point. I wonder how the Packers have theirs set up.

[Hairyducked Idiot]

Besides the administration costs, I imagine the legality of bringing that many people in would make things pretty hairy.

[CubbieBum]

Problem is, he needs 5-10 investors to put forth $25 million each, according to the article. Your plan would cover just one of the investors.

 

but who is to say that it couldn't be expanded? i'm pretty sure that there are more than 200,000 cubs fans who wouldn't want to own a piece of the team. or that the price of one share could be higher than $125. both numbers could be adjusted. my point is that ricketts just going after big money investors when he could open up a very large infusion of cash by doing the same thing on a greater scale with a very loyal fanbase as well as big money investors seems kind of short-sighted to me.

 

think of it this way- if ricketts opens up the possibilities to the fanbase and they come through in a big way, those big money investors could get more money squeezed out of them by way of the fewer opportunities to invest in the team.

 

this plan is purely hypothetical, but it's one i think would work really well.

 

I'm pretty sure we could get fans to cover half the cost of buying it if there was a round table thing where we take turns getting to go to the game, sit in owner's area and meet the team. If we did that I bet we could get 300,000-500,000 or so fans willing to but up 1,000 while getting that percentage slightly less percentage of the profits back. I.E. if 1,000 dollars equals .0001 percent of the cost of buying the team then you get something like .00001 percent of the profits each year. So Rickets doesn't have to put nearly as much money on the line and fans would get (using 15 million profit each year as a base) would get 150 dollars a year and the extra benefits once a blue moon. That's a really good investment monetarily and eventually you may get to meet the entire team too.