Tribune Selects $900M Bid From Ricketts Family For Cubs, Wrigley

Thomas Ricketts Face Of Family's $900M Offer

Tribune Co. has selected the family of Chicago-based investment banking firm Incapital Holdings Founder & CEO Thomas Ricketts as the "favored bidder to buy" the Cubs, Wrigley Field and a 25% stake in Comcast SportsNet Chicago for $900M, according to a front-page piece by Sachdev & Oneal of the CHICAGO TRIBUNE. The family Thursday night confirmed that it "has been selected by Tribune Co. to begin exclusive negotiations." Ricketts said, "My family and I are Cubs fans. We share the goal of Cubs fans everywhere to win a World Series and build the consistent championship tradition that the fans deserve." Sachdev & Oneal note the sale is not yet finalized, as the family still must "hammer out a final agreement with Tribune Co. and secure financing." Once the deal is signed, it must be approved by at least 23 of MLB's 30 team owners. Cubs officials have indicated that they "hope to have the new owners in place by the start of the season." A source indicated that the "appeal of the Ricketts bid was that it featured more cash up front than the other bids, promising roughly 50[%] in equity and the rest of the $900[M] financed with debt." Sources noted that the "structure was favored by Tribune Co. and creditors since it meant more cash in the bank on closing day." Ricketts, who led the family's pursuit of the Cubs, is the son of TD Ameritrade Holding Corp. Founder J. Joe Ricketts, who has an estimated net worth of $1.2B. An MLB source said that league Commissioner Bud Selig has not met with the Ricketts group, but that Selig "didn't view that as an obstacle to the sale." Sachdev & Oneal note the Ricketts' $900M offer is "unprecedented for baseball," topping the $700M a group headed by John Henry in '02 paid for the Red Sox, Fenway Park and an 80% stake in NESN. Tribune's selection of the Ricketts family "culminates a nearly two-year auction process that was complicated by the global financial crisis and, more recently," Tribune Co.'s bankruptcy filing (CHICAGO TRIBUNE, 1/23). Comcast SportsNet’s Dan Jiggetts added, “The big part about their bid is the fact that maybe a lot of it is going to come in cash” ("Monsters in the Morning," CSN Chicago, 1/23).

WORKING OUT THE FINAL DETAILS: In N.Y., Richard Sandomir reports Tribune Co.'s creditors committee Thursday supported the Ricketts' offer, and by "getting the creditors' support, it is far less likely that a creditor unhappy with the Ricketts offer will petition the federal judge overseeing" Tribune Co.'s bankruptcy case to "reopen the bidding" (N.Y. TIMES, 1/23). CRAIN'S CHICAGO BUSINESS' Colias & Saphir reported Tom Ricketts and Tribune Co. "likely will spend several weeks hammering out contract terms before" Tribune submits its proposal to MLB (CHICAGOBUSINESS.com, 1/22).

HOW THE CUBS WERE WON: In Chicago, David Roeder cites a source who reports while other prospective buyers "might have bid a higher price for the team," the Ricketts offer had "more conservative financing, an important factor when credit is extremely tight." In addition to the conservative financing, Tom Ricketts "lives in the Chicago suburbs and represents what [is] essentially a family bid," and Roeder notes MLB owners are "known to favor tight-knit groups of owners with local ties." Ricketts also "has an advantage because he hired" Milwaukee-based law firm Foley & Lardner to assist him in the bidding. MLB President & COO Bob DuPuy is a partner at the firm. The Ricketts beat out bids from Chicago real estate exec Hersch Klaff and a group led by Clarion Capital Partners LLC Managing Partner Marc Utay (CHICAGO SUN-TIMES, 1/23).

Cubs Hope To Begin Wrigley Renovations Soon In Order To Help Modernize The Ballpark

WRIGLEY'S STATUS A BIG DECISION: In Chicago, Paul Sullivan wonders if the Ricketts bid is successful, can the group maintain Wrigley Field as an "iconic structure while capitalizing on it as an outdoor cash machine?" The city of Chicago's "landmark ordinances will prohibit too many changes to Wrigley, but fans should expect some kind of face lift in the coming years." Cubs Chair Crane Kenney earlier this month said, "We have a lot of things we want to do, what we call 'Wrigley 2014,' which are the plans for the outside design and all the things we want to get done, and you can't do it without an owner to help direct you." Kenney "still hopes to get those plans underway soon," but whether the Ricketts are "on board for the 'modernization' of Wrigley remains to be seen" (CHICAGO TRIBUNE, 1/23).  

TIME TO MOVE FORWARD? CRAIN'S CHICAGO BUSINESS' Ed Sherman writes Wrigley "needs to be overhauled at some point." Sherman writes of Ricketts, "Will he decide to renovate or will he do the unthinkable and tear down Wrigley for a new ballpark? Just remember Yankee Stadium now is history" (CHICAGOBUSINESS.com, 1/23). In Chicago, Rick Morrissey writes the Ricketts family should "rehab Wrigley Field." The new owners should "keep the outfield bleachers, the ivied outfield walls and the stately scoreboard," but "raze the rest of it, and in its place build a clean, pleasant ballpark that will make its own place in the world" (CHICAGO TRIBUNE, 1/23). YAHOO SPORTS' David Brown writes Wrigley "needs round-the-clock care," because sometimes "chunks of concrete fall from the upper deck." Wrigley will need "many more millions to make it even partway to its next centennial" (SPORTS.YAHOO.com, 1/23).

Should New Cubs Owners Hire Someone Other Than Kenney To Run Organization?

SOME FREE ADVICE: The TRIBUNE's Morrissey gives some suggestions as to what the Ricketts family should do once they acquire the team. They need to "hire someone with baseball experience to run the organization." This is "no time or place for someone like" Kenney, who "doesn't have a baseball background." Also, Morrissey writes the "further the Cubs get away from the amusement-park mentality, the better." The new owners also should "lower ticket prices." Morrissey: "Think of the good will the new owner would engender by acknowledging the pain consumers are feeling" (CHICAGO TRIBUNE, 1/23). Meanwhile, the TRIBUNE's Sullivan looks back on Tribune Co's ownership of the Cubs, which began in '81, under the header, "Tribune Co. Departs Wrigley Field Without A Cubs Pennant" (CHICAGO TRIBUNE, 1/23).

CHANGE IN PERCEPTION: Chicago Tribune reporter Chris Kuc said, "I don’t know that much about the Ricketts, but I know they have a lot of money. ... The perception of ‘We’re going to bring in some guys here and we’re going to spend some money’ I think is a good thing as far as Cubs fans are concerned.” But Chicago Tribune reporter K.C. Johnson said, "The knock that the Tribune Co. doesn’t spend any money is erroneous. The payroll over the past couple seasons is top five in the league." Meanwhile, Morrissey said, "I’m sure most everybody here and out in TV land want this thing to be over with. This is like the longest-running story of all time. I think people just want stability here" ("Chicago Tribune Live," CSN Chicago, 1/22).