Cubs Narrow List Of Buyers; Cuban Makes Cut, Canning Jr. Out

Cuban One Of Five Groups To Make Cut For Second Round Of Bidding For Cubs

Tribune Co., which owns the Cubs and Wrigley Field, has "culled the number of bids for the team to five, all at $1[B] or more, and tossed out an offer from a group regarded as the favorite" of MLB, according to sources cited by Roeder & Spielman of the CHICAGO SUN-TIMES. Mavericks Owner Mark Cuban was among those "making the cut," but the identity of the other finalists is unknown. Tribune Co. "rejected an offer from a large investment group" led by Madison Dearborn Partners Chair & CEO John Canning Jr. Canning is part owner of the Brewers and is a "close associate" of MLB Commissioner Bud Selig. A source said of Canning, "His bid was not at a high enough level. He's out. He could rebid. ... But as of now, he's out." Roeder & Spielman write the Cubs' "bold move points to escalating tension between [Tribune Co. Chair] Sam Zell, trying to maximize the price for the Cubs, and the lords of baseball." Tribune Co. in rejecting Canning "may be trying to avoid a situation" the Red Sox faced in '02, when the Red Sox had a higher bid, but Selig and the owners "ultimately forced a sale for $700[M]" to John Henry. The five remaining bidders will get "access to more financial reports ... and will be expected to submit revised offers in September." A source said that Tribune Co. hopes to "recommend a buyer to [MLB] by November." Former Cubs announcer and current White Sox announcer Steve Stone said that second-round bidders will "have to spend at least $1[M] on 'forensic accounting' to review liabilities of the team, the condition of Wrigley Field and get details of Tribune's 25[%] stake in Comcast SportsNet, which is part of the deal" (CHICAGO SUN-TIMES, 7/24). AHL Chicago Wolves Owner Don Levin was "among those who didn't" make the cut (CHICAGO TRIBUNE, 7/24).

MONEY MATTERS: In Chicago, Rosenthal & Sachdev report with Tribune Co. rejecting Canning's offer, the team "fired a warning shot concerning the auction for the ball club, Wrigley Field and related properties." By informing Canning that his group's first-round proposal "fell short of those advancing," sources indicated that Tribune Co. "sought to tell everyone involved -- including MLB -- that money matters more than who you know." Sources said that Tribune Co.'s "knockdown of the Canning group did not necessarily take Canning out of the game, which was described by one auction source as being only in 'the second inning.'" But it was "unknown whether Canning's group would increase its offer, or how Tribune Co. would respond if it did." It also is possible some bidders whose offers "were not satisfactory to Tribune Co. may choose to align themselves with others still in the auction" (CHICAGO TRIBUNE, 7/24). The Chicago Tribune’s Paul Sullivan said Tribune Co. owes it to their employees "to take the highest bid possible and if there’s any other way that it goes through, then it’s a sham" (“Chicago Tribune Live,” CSN Chicago, 7/23).  

HAVING THE FINAL SAY: CSN Chicago's David Kaplan said of Canning reportedly being out of the bidding, “Really good sources I spoke to today said, ‘Don’t believe that.’ Because their bid was a lot lower than the others … people believe (the Canning group is) out. They said, ‘Don’t believe that,’ that it will change and that people at the Tribune Co. are underestimating how much power Bud Selig and (MLB) will have in deciding who's going to get this team.” Kaplan said Cuban will not be allowed to purchase the team, even if he has the highest bid, because Kaplan does not "believe (MLB’s) group of owners is going to want him in their club.” Sullivan: “You talk to the players and basically, they’re all for Cuban (buying the team) … because they see how he handles his athletes with Dallas.”  However, Kaplan said, “People out there who think Cuban is the greatest to have (as an owner), front row tickets for a Mavericks game since he took over -- $2,800 a seat. So as soon as the Cubs fans go, ‘Wait a minute, you’re raising my tickets to what,’ he doesn’t become so attractive” (“Chicago Tribune Live,” CSN Chicago, 7/23).