Re: Sale of Cubs to Ricketts Complete (p. 15)

[Soul]

Seems to me they prematurely announced the "winner."

 

The bidding is still taking place - the only thing Ricketts won was the right to be the sole bidder until Cubs brass gets tired of it and opens it back up.

[Guest]

Do we still want Cuban?

 

I can't imagine the bids are going to get better than the one Ricketts is locked into with the economy in the shape it is in.

[C.C.]

Do we still want Cuban?

 

 

Sure

[Clem Fandango]

http://sports.espn.go.com/mlb/news/story?id=4269936

 

CHICAGO -- Talks to sell the Chicago Cubs have reopened with a rival bidding group as negotiations continue with the Ricketts family, sources familiar with the situation said on Thursday.

 

The bankrupt Tribune Co. has been trying to sell the Cubs for more than two years to reduce its debt burden. It agreed in January to sell the prized team and other assets to the Ricketts family for $900 million.

 

An exclusivity period between Tribune and the Ricketts group has ended, and the media company is now talking to a group that includes private equity investors Marc Utay and Leo Hindery, three sources familiar with the situation said.

[C.C.]

What a mess...

[Hairyducked Idiot]

In the pantheon of business debacles, does this surpass the Bears and McGinnis?

[SouthSideRyan]

I can't remember, I think we liked Utay. Ricketts would have to really be dragging his feet if this is legit, cause I don't see how they get comparable dollars in the current market.

[Flames24Rulz]

At this point, I don't care who buys the team. Just get this damn thing over with so we can be buyers at the deadline.

[UMFan83]

At this point, I don't care who buys the team. Just get this damn thing over with so we can be buyers at the deadline.

 

That's pretty much impossible at this point. Obviously its pretty unlikely if they are just not talking to other bidders, but if Ricketts does indeed buy the team (I still think this is the overwhelming case...I think I remember reading that Ricketts had a much better offer than the other bidders, so they aren't going to get nearly as much money from the other bidders), they seem to be so far apart that it doesn't seem likely that either side is going to concede in time to get the owners to approve and allow Ricketts to take over, run the numbers, give a new budget to Hendry and have him negotiate a trade or trades in what 5 weeks?

[17 Seconds]

well there's no way ths is getting done by the deadline. i'd be happy if it was done before 2010

[RynoRules]

](*,) ](*,)

[Banedon]

I wonder...when the whole economy tanked, did Ricketts decide to try to stall his way out of this deal?

[Soul]

I'm sure some of the details will come out, especially if Ricketts winds up losing the team. People will want to know why he didn't honor the numbers he agreed to. The economy can always tank -- not the Cubs' fault.

[Little Slide Rooter]

According to the Score, the main hold up is that Ricketts doesnt want to pay the extra 50 mil for the WGN/CSN broadcast deal which is of no benefit to him. Also, Zell wants to hold on to 5% of the team for tax purposes. This is what I heard on Mully and Hanley this morning.

[jersey cubs fan]

I wonder...when the whole economy tanked, did Ricketts decide to try to stall his way out of this deal?

 

The economy tanked before he "won" the deal.

[Banedon]

I wonder...when the whole economy tanked, did Ricketts decide to try to stall his way out of this deal?

 

The economy tanked before he "won" the deal.

 

Huh...seemed like longer ago than that.

[jersey cubs fan]

I wonder...when the whole economy tanked, did Ricketts decide to try to stall his way out of this deal?

 

The economy tanked before he "won" the deal.

 

Huh...seemed like longer ago than that.

 

The announcement came in January 2009. The recession began in December 2007, the market collapse began in September/October 2008, with the lows coming in November. The lows were tested again in March 2009 then quickly began to rebound. Anyway, I doubt he's trying to stall his way out. Zell is a tough negotiator. Considering how he was trying to scam the state into buying Wrigley and selling the team seperately, and then doing whatever he could to frame the sale as tax friendly as possible, plus the broadcasting rights issue, it makes sense that Ricketts wouldn't just give in to every demand.

[cubweiser03]

Trib holding on to 5% is good for Ricketts, thats about $45M of less of his own money or financed money, he was looking for outside investors anyway. Originally Ricketts was also purchasing 25% of the regional cable market, i dont know the value of that or how it affects the total sale price or what the Trib is asking for now. I dont think what is going is an indication that deal is going south.

[Clem Fandango]

Cuban not planning on reentering the bidding war...

 

http://sports.espn.go.com/chicago/news/story?id=4271828

 

Dallas Mavericks owner Mark Cuban said he has no plans to become a candidate again to own the Chicago Cubs, despite reports that the bidding has been reopened.

 

"No plans to get back in the mix," Cuban wrote to ESPNChicago.com.

 

Cuban once was a candidate before the Ricketts family won exclusive bidding rights. But the exclusivity period with the Ricketts family has expired.

 

ESPNChicago.com's Bruce Levine quoted a source saying Sam Zell has reopened negotiations with a group out of New York led by Marc Utay, who is a former North Suburban Chicago resident, and Leo Hindery.

 

Utay's group had been one of the three finalists.

[laurens]

Maybe they can make a reality show out of this

[NCCubFan]

At what point does MLB step in and give the Trib a deadline? They can't just let this drag on and on and hold the payroll hostage forever.

[YearofDaCubs]

I don't think Ricketts is trying to get out of the deal. They sold all of their shares of Ameritrade to purchase the Cubs. That's a significant move for them.

[Cubbie Swagger]

From what I've heard... the Ricketts family is still going to get the team... the Cubs are just "talking to other bidders" to try to speed things up and make Ricketts feel a sense of urgency. And as others have pointed out, the recession had been going on long before the Ricketts negotiations.

 

And also... Mark Cuban has zero chance of owning the Cubs, even if he did want to re-enter the sweepstakes. Mostly because the MLB would never approve him.

[SouthSideRyan]

I don't think Ricketts is trying to get out of the deal. They sold all of their shares of Ameritrade to purchase the Cubs. That's a significant move for them.

 

They didn't sell all their shares. They have an ~18% ownership stake remaining.

[jersey cubs fan]

At what point does MLB step in and give the Trib a deadline? They can't just let this drag on and on and hold the payroll hostage forever.

 

MLB probably thinks it's a good thing to keep the Cubs payroll stagnant.

 

But in reality these negotiations have not held the payroll hostage. It's risen steadily since it was announced they were up for sale. It's Hendry's fault for committing the 2009/2010 dollars that he committed if he feels held hostage at this point.