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Cubs Sale Update

The Tribune reports this afternoon on the new round of bidding:

At least three prospective buyers have submitted a new round of bids to Tribune Co. for the Chicago Cubs, one of professional sports' trophy franchises.

Chicago real estate investor Hersch Klaff; the Ricketts family, founder of online brokerage TD Ameritrade Holding Corp.; and a group led by Marc Utay, a New York private equity investor, delivered their proposals by the Thanksgiving deadline, according to sources involved in the negotiations.

The name Marc Utay is new to me -- I don't recall his name being mentioned in the first round, and don't know anything about him. If you're wondering what's up with Mark Cuban, the article says:

It was unknown at the time this report was filed whether two other prospective buyers -- Houston businessman Jim Crane and Mark Cuban, owner of the Dallas Mavericks basketball team -- had submitted new bids.

While Cuban has expressed ardent interest in the Cubs, he has not been active in the sales process for months, according to a source. His chances to buy the team took a hit when federal securities regulators charged him last month with insider trading.

I still believe the Ricketts group is the one that will eventually end up with the Cubs; the Ricketts family, though living now in Omaha, has Chicago roots and from what I have heard, would stand back, let the baseball people run the show and open up the purse strings. As ever, we await further developments.

0 recs  |  33 comments

Comments

FIRST!
first is the new last.

first is SO 2008.

oh shut up.

our franchise is SO 1908.

ouch

and… ZING

Hampton signs...

with Astros.

Good lord, why?
Seems fairly low risk...

I believe a 2 Mil deal with incentives. Worth a flyer, I suppose, for a team like the Astros who won’t be able to sign a higher priced option. Meh.

I guess.

I still wouldn’t touch him.

I'd touch him....but only in a manly "how's it going" kida way.
or a summer heights high jonah kinda way
Does anyone know

what happened with Don Levin’s bid? I haven’t been following the sale very much, but I thought he was one of the front runners when it all started.

Wouldn't be surprised...

…if some level of communication hasn’t already happened between Kenney and all the prospective buyers regarding payroll and expected payroll for 09. The problem is, by the time this thing could ever be finalized and one owner is identified, the FA market for 09 will be long gone.

If the group is pared down

What is the likelihood of Hendry/Kenney going to the prospective owners and asking them each what they would allow for payroll?

As noted above...

… maybe that’s already happened.

Which one is pink hat guy?

I remember reading on this blog about pink hat guy being in on the bidding early. Who is pink hat guy, and is he among these three?

His name is Jim Anixter.

And, apparently, he’s not among the bidders at this time.

have you

ever met him?? whats he like??

I have not met him.

I know of him from TV and knowing his name, nothing more.

Update.

Cubs website says Mark Cuban did NOT make an offer:

Dallas Mavericks owner Mark Cuban apparently has not submitted a bid. Cuban was charged by federal regulators with insider trading last month and has not been part of the bidding for months, according to Reuters’ sources.
Oh well.

Hopefully the new owners will still bring his kind of excitement an commitment to winning.

Dave Kaplan just mentioned that Cuban's group

couldn’t put together the money to have a bid in the ballpark of the others.

I had decided, after all, to keep an open mind about Cuban.

But this statement shows that he wasn’t the guy “with the most money”. Many here were suggesting he could file a lawsuit if MLB prevented him from buying the Cubs if he had the highest bid. Turns out that wasn’t going to be the case after all.

I think he has the money...

…but he may not have thought it would be a good business deal. One thing most don’t give Cuban enouph credit for, is his business accuman. With the economy in the tank, he (and others) may have thought it was a risky proposition that may very well take a long time to recoup the investment.

Possibly so.

But even then, it appeared he was only going to put in $100m of his own money, and finance the rest. That’s probably impossible in this economy.

Anybody have an over/under on when this transaction takes place?

Given that Zell has been shopping the team around since opening day of 2007, what are the odds that the sale closes this year, or by opening day, or by the end of next season? With (apparently) only three bidders, I have to think that the process will move a bit faster, but holy cow it has taken roughly FOREVER to get to this, the 2nd round of bids, some 19 months(!) after Zell first said he wanted to sell the team.

It seems that the days of single off-season sales of teams are over.

My guess is the winning bid is announced after New Year’s but before opening day, with the actual transfer of ownership occurring sometime after the 2009 season. I base this off of other recent non-Brewers sales (Braves, nearly a year of exclusive negotiations with winning bidder; Nationals, over 9 months from first bids to signing papers; Dodgers, nearly a year from first bids to signing papers; even the Brewers took over four months to hammer out details once a winner was announced) and the arrangement of sesame seeds on my hamburger bun this evening.

I would have said by the end of the year...

… but with the economy the way it is now, I think all bets are off and you can’t compare it to previous sales, which took place in better economic conditions.

I’d say maybe by the end of the 2009 calendar year, if all goes perfectly, and it probably won’t.

I think the tax deferment strategy of Zell is holding it up

In today’s economic times, even billionaires are having a tough time getting financing. Zell wanting to stretch out the process for ten years really hamstrings the process. Makes me wonder if it might be the Ricketts family. Seems they have an emotional connection, and seem more personally invested in wanting the team.

I think you're right, and...

… the fact that they DO have an emotional investment would mean they’d be more likely to spend what’s necessary to compete to win every year.

According to the Wall Street Journal, Marc Utay has a partner whose name is Leo Hindery Jr, founder of the YES network. Maybe he will start a 24/7 Cubs network if his group wins the bidding. Imagine the possibilities!

http://blogs.wsj.com/deals/2008/12/01/the-chicago-cubs-a-draw-even-in-the-offseason/

This sort of network has been mentioned before.

Interesting idea.

on that note

was wandering if the mlb network is gonna show a game everyday?? how’s that gonna work??

They're going to have one game a week.

IIRC, on Sundays. Otherwise they’re going to have an every-night live cut-in/highlight show from 6 pm to midnight.

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