Talks To Sell Cubs Reportedly Reopen As Exclusivity Period Ends
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Ricketts Group Has Failed To Finalize Deal
For Cubs Before Exclusivity Period's End |
Talks to sell the Cubs have "reopened with a rival bidding group, and are continuing alongside negotiations" with prospective Cubs Owner the Ricketts family, to whom team Owner Tribune Co. "agreed in January to sell the Cubs," according to sources cited by Klayman & Davies of REUTERS. A deal between Tribune Co. and the Ricketts group "was not finalized before an exclusivity period ended," and sources said that the company and Tribune Co. Chair Sam Zell are "now able to negotiate with other buyers." A source said, "Until someone has signed a purchase agreement, anything is possible." Sources added that Tribune Co. is "now talking to a group that includes" Clarion Capital Partners LLC Managing Partner Marc Utay and InterMedia Partners Managing Partner Leo Hindery Jr. A source: "We know that they went back to the Utay group." Another source said that Tribune Co. and its banker, JP Morgan, have "entered into formal talks with the Utay/Hindery group and a deal could be reached late next week." But other sources said that the "re-emergence of the Utay/Hindery group ... also could be Tribune Co.'s way to pressure Ricketts into settling on terms desired by the media company," and two sources said that Tribune Co. and the Ricketts family are "on the verge of a deal." A source: "That's just a way to keep the fire on the Ricketts." Spokespersons for Tribune Co. and Tom Ricketts, "who is leading his family's bid, said their talks are ongoing," and Ricketts spokesperson Dennis Culloton "described them as positive" (REUTERS, 6/18).
BREAKING POINT: A source said, "I think it likely that Zell is trying to use the threat to push Ricketts to the finish line, with the possible bonus that Utay comes up with something." However, in Chicago, Ameet Sachdev cites sources as indicating that the two sides have "not been able to come to an agreement on the team's broadcast rights, which Tribune Co. owns through its WGN subsidiaries and 25[%] stake in Comcast SportsNet Chicago." The broadcast contracts are a "major source of revenue for the team ... in addition to ticket and concession sales at Wrigley Field." Meanwhile, Sachdev notes when Tribune Co. put the Cubs, Wrigley Field and CSN Chicago up for sale in '07, "some thought the package might fetch more than" $1B, but sources said that the Ricketts family now "has considered lowering its winning bid" of $900M. Also, Chicago real estate exec Hersch Klaff, one of the finalists in the auction of the team, Thursday said that he is "no longer interested" (CHICAGO TRIBUNE, 6/19). Utay said of the reports, "I'll tell you what I've told everyone. If and when I actually re-engage, I'm not going to tell anybody anything" (AP, 6/18).
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