Tribune Co., Ricketts Family Send Proposed Cubs Deal To MLB

Ricketts Family Has Sent Proposed Deal To MLB

Tribune Co. and prospective Cubs Owner the Ricketts family yesterday sent documents "describing a proposed deal" to MLB for its review, a "significant step" toward finalizing a sale of the club, Wrigley Field and a 25% stake in CSN Chicago, according to sources cited by Ameet Sachdev of the CHICAGO TRIBUNE. Some details of the agreement are "still being worked out," but the sources indicated that "enough progress has been made to give MLB executives an advance read at what a deal would look like." Sachdev notes this step "appears to put the family back in the driver's seat" to acquire the Cubs. The documents sent to MLB show how the Ricketts would "finance the deal and the unusual capital structure the two sides have been negotiating." Sources said that as part of a possible arrangement, a "new partnership would own the assets Tribune Co. is unloading," giving the Ricketts 95% of all assets with Tribune Co. retaining the other 5%. The objective of that deal would be to "shelter Tribune Co. from several hundred million dollars in capital gains taxes that would be generated by selling assets the company has held through decades of growth" (CHICAGO TRIBUNE, 7/7). A source said the deal is close to completion, but added, "I don't think every single i has been dotted and every t has been crossed." In N.Y., Ken Belson reports MLB now will review the proposed deal and "make a recommendation to the owners of the other franchises, who must sign off" on it. The deal "must also be approved" by a bankruptcy court judge, as Tribune Co. in December filed for Chapter 11 protection (N.Y. TIMES, 7/7). The WALL STREET JOURNAL's Matthew Futterman reports the two sides "shared working drafts of their agreement" with MLB this past weekend. The deal is "tentatively valued at just under" $900M (WALL STREET JOURNAL, 7/7).

TIME TO MOVE FORWARD: Cubs Chair Crane Kenney said that he "hopes the long-awaited sale" will be "finalized soon so that he and other club employees can focus solely on the business of baseball." Tribune Co.'s sale to the Ricketts has been "more than five months in the making," and MLB Commissioner Bud Selig has said that he "foresees little trouble in getting the deal approved by owners once both parties sign off on terms." Kenney yesterday said, "At some point it's a distraction. You just wanted it to finish so that those who had job-security concerns can stop worrying. Everybody gets back to doing their job a little more straightforward." The Cubs have "floundered around the .500 mark" all season, but Kenney said, "We've got a great ballclub. I hope no one expects a new owner to come in and do anything dramatic in the short sense" (CHICAGO TRIBUNE, 7/7). Cubs GM Jim Hendry said, "Obviously, when you don't have an owner for this long, there's certain things that come into play, which happened the last four or five months that made it a little tougher than the last couple years. In the big scheme of things, we don't have a lot to complain about. It's a pretty good place to come to work every day." In Illinois, Bruce Miles notes while the subject of the prospective sale is a "hot one because the July 31 nonwaiver trading deadline is fast approaching," Cubs execs are "operating as if" Tribune Co. still owns the team (Illinois DAILY HERALD, 7/7). Hendry yesterday said that he "did not intend to change his approach because the sale has not been finalized." Hendry: "All I heard today was that it wasn't all the way done, it's getting closer and we'll go from there" (MLB.com, 7/6).

A GOOD FIT: CSN Chicago's Steve Stone said of the Ricketts family, "I believe that they are owning this team to keep it for a long time, probably long after you and I are gone." He added Tom Ricketts "has the best interest of the Chicago Cubs in mind. He loves Chicago. He loves Chicago Cub baseball. You couldn't have a better owner." CSN Chicago's Todd Hollandsworth: "They seem to be the perfect owner coming together. They are a team that obviously wants to keep everything united and focused on the Cubs and making this a better organization. Not only with performance and on the field, but the product itself, make it greater and grander" ("Chicago Tribune Live," CSN Chicago, 7/6).

Wrigley Stadium Renovation May Be Ricketts Family's First Project

EXTREME HOME MAKEOVER? In Chicago, Fran Spielman notes when the Ricketts sale goes through, "one of the first hurdles will be what to do" about Wrigley. Sources said that Tom Ricketts has "seen all of the renderings" for a $250M renovation of the ballpark, known as Wrigley 2014, but has "not yet signed off on a specific renovation plan." The proposed renovations, "timed to celebrate the ballpark's 100th anniversary," call for "new concourses, washrooms, concessions, skyboxes and a club seating lounge." In addition, the Cubs would "finally develop the so-called triangle building" adjacent to the club seating lounge and "turn the street in between into a Fenway Park-style pedestrian promenade bustling with shops and restaurants." But Spielman wonders after paying almost $900M for the Cubs and related assets, "how extensive of a renovation would the Ricketts family be able to afford or be willing to bankroll?" (CHICAGO SUN-TIMES, 7/7).