Cuban Says Struggling Economic Market Has Slowed Cubs Sale
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Cuban Says Tribune Co. Would "Be Crazy" To
Sell Cubs Now Because Of Poor Economy |
Mavericks Owner Mark Cuban, who is bidding to buy the Cubs and related assets from Tribune Co., Thursday said that the "credit crunch and the failing economy have put the brakes on the sale," according to Brian Hanley of the CHICAGO SUN-TIMES. Cuban, attending Thursday night's Mavericks-Bulls preseason game at the United Center, said of the struggling economy, "It's going to affect the deal structure. It's going to create a challenge. ... Honestly, they'd be crazy to do something now because it's not optimal for them and it's not optimal for the buyer. So there's not really a rush" (CHICAGO SUN-TIMES, 10/10). Cuban noted that he and Tribune Co. Chair Sam Zell "hadn't talked about the current economic mess and how it would affect the sale." In Chicago, Rick Morrissey notes "rumors have swirled that Cuban has added investors with Chicago ties to his bid group in hopes of making him attractive to owners," and when asked about the rumors, Cuban said he was "not discussing the stuff at all." Meanwhile, Morrissey writes it is a "pretty safe bet neither the Cubs nor any other sports franchise is going to lower prices because of the struggling national economy" (CHICAGO TRIBUNE, 10/10).
HITTING IT OUT OF THE PARK: Mets Exec VP/Business Operations Dave Howard said that the team has sold out the luxury suites at Citi Field "for as much as $500,000 a year, avoiding the financial crisis," and that "season-ticket holders also are renewing at 'extremely high' rates." Howard: "We haven't seen the effects of the economic situation, but certainly we are mindful of the economy and especially in our community and market place" (BLOOMBERG NEWS, 10/9). In N.Y., David Li notes there were 39 Empire Suites at Citi Field that sold "for $275,000 a pop and 10 Sterling Suites that fetched $500,000 each." Howard: "We closed several deals in the last month. Timing is an important factor in a lot of business" (N.Y. POST, 10/10). CNBC’s Darren Rovell said the Mets' suite sales announcement is "the most incredible news I heard in a long, long time. ... Will that hold? I’m not sure” (“First Take,” ESPN, 10/10). Meanwhile, Twins President David St. Peter, whose team will move into Target Field in 2010, said of the economy, "Everybody's keeping an eye on it; you would be crazy to think that it doesn't have some impact. That being said, we have been very encouraged by the amount of premium seating that has been sold for Target Field -- suites and club seats. And we're optimistic about what the sponsorship side will bring as well" (ST. PAUL PIONEER PRESS, 10/8).
JOLLY GREEN GIANTS: Jets Owner Woody Johnson indicated that fans "won't pass up the chance to buy" PSLs to 2,000 seats in the team's new stadium, which will go up for auction on October 19. Johnson said of the economy's impact on sports, "I don't think you want to be presumptuous and say anything's recession-proof. But I think people would be apt to keep those tickets probably longer than other things." Johnson added that the team has "no plans for immediate changes in its business operation because of the economy." Johnson: "We're running the business side of the New York Jets the way we have done in years past. If a potential downturn in the market affects our business, then we'll have to make those adjustments." Johnson also said that the NFL "will remain strong." Johnson: "It's like cable television or the movies. People tend to hold onto activities and assets like that, particularly when the economy is going down" (BLOOMBERG NEWS, 10/9). Jets Exec VP/Business Operations Matt Higgins said that "despite the downturn, the team has gotten a lot of interest" in the auctioned seats. Higgins: "What we are hearing is that with an experience so unique, people are going to be able to look beyond the current climate." However, Univ. of Maryland Baltimore County economics professor Dennis Coates said of the Jets' PSL auction, "It's probably going to work out very badly for them" (Westchester JOURNAL NEWS, 10/10).
FROM RUSSIA WITH LOVE: 2014 Sochi Olympics Organizing Committee Exec Dir Dmitry Chernyshenko said that the "global financial crisis is not affecting the massive construction program" for the 2014 Games, though he admitted that "some impact may be felt in the months ahead." Chernyshenko: "All the money the government committed to (general) infrastructure is allocated in the budget already, so that guarantees everything will be paid in full." Chernyshenko also announced that Sochi's "three-tier sponsorship program would be launched at the end of November once its marketing plan has gained IOC approval" (AROUNDTHERINGS.com, 10/9).
MORE TROUBLE ABROAD: Investment firm Seymour Pierce Chair Keith Harris, whose company was hired by English Premier League club Newcastle United Owner Mike Ashley to help find a purchaser for the club, said that finding a buyer for Newcastle "could prove impossible in the current financial crisis." Harris noted that Ashley "could remain in control for much longer than anticipated, as a serious bidder has yet to emerge and the global meltdown of financial markets made it 'easy for people to find an excuse' not to buy" (Manchester GUARDIAN, 10/10). In Manchester, Matt Scott writes under the header, "Toxic Football Debts Leave Clubs Gripped By Fear." The current economy "will lead to greater problems than ever for teams that drop out of the Champions League" and EPL (GUARDIAN.co.uk, 10/10). Meanwhile, also in Manchester, Paul Rees reported the Six Nations rugby tournament "may be forced to look for a new backer because of the growing economic crisis." The tournament's current sponsorship deal with RBS, which is worth about US$6.8M annually, expires at the end of this season and there are "no indications of when, or if, a new deal will be struck" (Manchester GUARDIAN, 10/9).
ON THE TRACK: Milwaukee Mile President & CEO Claude Napier Thursday said that the track "has cash-flow problems, but it's not going away." Napier's comments were in response to cleaning company Jani-King Chair Jon McAlpine's claim that the company "hasn't been paid for work at the track." Napier said that the track is not "in danger of going out of business," and added that the facility "enjoyed good attendance during the racing season, but was hit hard by the loss of sponsorship revenue." Napier said that about seven sponsors, including MillerCoors, Time Warner Cable and AT&T "pulled out" (MILWAUKEE JOURNAL SENTINEL, 10/10)....In Orlando, Tania Ganguli writes NASCAR team owners "can't take as many risks with younger drivers as money tightens and sponsorship dollars become harder to obtain." Kevin Harvick Inc. Owner Kevin Harvick: "It's turned my team upside down from an owner's standpoint just for the fact that our Nationwide program, we're having to kind of step back and revisit where we are with all that stuff. It's tough and if the economy turns worse here everybody kind of goes into panic mode. ... It's as hard right now as it's ever been" (ORLANDO SENTINEL, 10/10)....In Lexington, Alicia Wincze reports Keeneland Race Course through the first four days of the thoroughbred track's fall meet saw its "all-sources handle decline 21[%] compared to last season despite a stacked opening weekend." Additionally, data released by the National Thoroughbred Racing Association & Equibase Company shows that "pari-mutuel wagering on U.S. races decreased" 9.85% during Q3 as compared to the same quarter in '07, while wagering for the first nine months of '08 is down 5.75% from last year (LEXINGTON HERALD-LEADER, 10/10).
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