Chicago Cubs to file for bankruptcy?

[marmar]

Chicago Cubs Bankruptcy Looms as Way to Finish Sale by Tribune
By Greg Bensinger and Gadi Dechter


July 13 (Bloomberg) -- The Chicago Cubs may become the first Major League Baseball team in 39 years to file for bankruptcy as Tribune Co. seeks to sell the franchise after months of negotiations.

Tribune sought Chapter 11 protection in December. It is contemplating a separate filing for the Cubs to expedite the team’s estimated $900 million sale to interested bidders, including Incapital LLC Chairman Tom Ricketts, according to four people familiar with the plan.

A brief Cubs bankruptcy would be a legal maneuver to clear the team from any future liability in the Tribune bankruptcy, according to two of the people familiar with the matter. Sam Zell, chief executive officer of Chicago-based Tribune, pledged the company’s interest in the Cubs as collateral when he negotiated the deal to take the publisher private in 2007, according to one of those people.

“You take it in the front door, and it’s just like you’re getting radiation,” said Michael J. Cramer, a former president of the Texas Rangers who teaches sports business at New York University. “It comes out the other door about a half minute later. It’s clean.”

Richard Levin, a spokesman for Major League Baseball, and Ricketts through a spokesman, Dennis Culloton, both declined to comment. “The company doesn’t comment on any potential transactions,” Gary Weitman, a Tribune spokesman, said in an interview yesterday.

The Cubs weren’t a part of Tribune’s bankruptcy filing. The people familiar with the matter said it remained possible the sale would close without the team filing as well. .........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601109&sid=aArEAGUlLmS8

[Blue_Tires]

1. Zell is a piece of shit....

but of course i'm being redundant

[KharmaTrain]

3. No You Can Keep Saying It...

...but then I'm a White Sox fan :rofl:

I've known Sam Zell from his Jacor Radio days...he made a fortune buying up radio stations then sold them to a bigger corporate at a big profit. He thought he could do the same with the Tribune company...but his timing and luck ran out. First were the major economic problems at the LA Times and Tribune...advertising revenues and readership has been on the decline and Zell overpaid for these properties. Next came the collapse of his broadcast holdings...and now add the Cubs to that mix.

His timing couldn't have been worse as there are few people with 500-800 million to pay his price...and fewer banks that are going to secure a major loan. No surprise the company is going Chapter 11...another Zell trick...he'll now try to cut his loses and still come out ahead. Meanwhile the Cubbies better get their act together this second half...could be the purse strings are gonna be very tight very soon.

[Blue_Tires]

5. and not to mention all the Tribune papers get jerked....

[surrealAmerican]

2. Why are these sorts of financial maneuvers ...

... even allowed. It certainly sounds criminal.

[KharmaTrain]

4. Because They Can...

For too many years, Zell and his ilk were able to swing deals and many people made money off of them. Rules were bent or avoided and no one was the wiser. Criminal? Hardly in a country that bent over backwards for over 30 years to let the foxes run the henhouse.

[dembotoz]

6. lets shutem down like Pontiac!!!!!!!!!

Turn Wrigley field into a condo project???????????????
maybe a mall??????????????????????

[lindisfarne]

7. Fans should buy them, like the fans own Green Bay Packers.n/t