Tribune Co. May Retain 50% Of Cubs As Economy Hurts Sale Talks
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Cubs Bidders Reportedly Set To Receive
Request To Submit New Purchase Proposals |
Tribune Co. "may end up holding 50% or more" of its stake in the Cubs, as the credit crunch has "stalled sales talks," according to Matthew Futterman of the WALL STREET JOURNAL. Sources indicated that in recent weeks, an "early plan to sell a 95% stake has fallen to about half as suitors' ability to buy the team" and Wrigley Field and a 25% stake in CSN Chicago has decreased. The sources noted that bidders Thursday were "preparing to receive a request to submit new purchase proposals with financing details." Futterman notes the likelihood of Tribune Co. "selling a smaller stake raises the question" of whether Tribune Co. Chair Sam Zell "erred by not pushing for a quick sale after he took control" of the company in April '07. Zell at the time of the acquisition said that a sale "was a priority." But as a result of the financial crisis, any sale now would call for Zell to "sell off Tribune's interest in the team over time," and it is "unclear how long that would take." No formal timeline on a sale has "been developed, but the initial buyer would be able to increase his shares in the team as credit becomes easier and cheaper to retain." The new strategy "marks a substantial change" from Zell's original plan to "retain a roughly 5% stake in the franchise in a heavily leveraged deal that would have minimized the capital-gains tax" for Tribune Co. (WALL STREET JOURNAL, 11/7).
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MLB Source Says There Is "No Way" Bud Selig,
Team Owners Will Allow Cuban To Buy Cubs |
OFF THE MARK: In Chicago, Chris De Luca cites sources close to MLB Commissioner Bud Selig who indicated that it is time to "forget about" Mavericks Owner Mark Cuban buying the Cubs. Baseball's "old guard plans to stand firm against letting Cuban into the club." An MLB source said, "There's no way Bud and the owners are going to let that happen. Zero chance." De Luca notes this would "be a blow to Zell and Cubs fans who are eager to get finality on a team that's in limbo." The source said of the timeline on the Cubs sale, "We'll be standing here at next year's GM meetings and this will still be unresolved." De Luca reports "all of this likely will put the group" headed by Madison Dearborn Partners Chair & CEO John Canning Jr. -- Selig's "personal favorite -- back as the front-runner." The slow sale process "figures to have a financial effect on the Cubs," and the team's payroll "figures to make a significant jump in '09 with so many backloaded contracts." Cubs GM Jim Hendry said of the team's payroll for next season, "I don't have a final figure yet, but there is no indication that we are going to go backward." De Luca notes had Cuban acquired the Cubs, "there was a feeling he'd open the checkbook even wider" to end the team's World Series drought (CHICAGO SUN-TIMES, 11/7).
LEADOFF HOMERUN: The Cubs' 24th annual Cubs Convention fan fest, scheduled for January 16-19, Thursday "sold out in only 24 minutes." The team has yet to announce who will attend the fan fest, but manager Lou Piniella and Hendry "will have their annual question-and-answer session" (CHICAGOTRIBUNE.com, 11/6).
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