Sale of Cubs might be further delayed
by MDBNIU on Oct 9, 2008 9:12 PM CDT
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PrintInteresting news in Crain's suggesting that the current credit crisis will likely cause Sam Zell to slow down the sales process of the Chicago Cubs. Why? Because for Zell's financial manueverings to work and for him to realize the greatest tax benefits from the sale of the Cubs he needs the new owner to heavily finance the purchase with debt. Well, credit is significantly drying up. It's being suggested that Zell will therefore delay the sales process until the financial markets ease up. That could take a couple of years. So we might be looking at Sam Zell as owner for a lot longer than anybody would have first envisioned.
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Sam Zell has been fine as the owner so far
Pretty much because Kenney is the one actually in charge.
Your 2008 Missouri Tigers! #2/3 5-0 (1-0). Next up Okie State at home. Live on ESPN in primetime for the second week in a row. Chase Daniel and Jeremy Maclin for Co-Heisman!
That's very true...
… and, in fact, from what I hear Zell has not only been hands-off, but told Kenney to do whatever it takes to win, which they did this year in terms of spending.
Sam Zell might turn out to be a very good hands-off owner.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
He might not be able to do it at all.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
Wow...
Most of that money is from a primary tranche. What’s he gonna do? Default, and tank the Trib?
by Damen Jackson on Oct 9, 2008 9:34 PM CDT up reply actions
There are a lot of defaults going on right now.
Why should the Tribune be immune?
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
Default is possible
It was as such back in August. By now, it might be probable. I am wondering now if Zell will now be able to meet the December $650 million debt payment which was supposed to be paid by the Newsday sale. I have a feeling that that cash may not be on hand anymore.
Because they have assets...
that investors would be more than happy to force-sell. It’s one thing to be in default when you no apparent means. But skittish fund managers would not lose sleep calling their convenants when a half-billion is on the table, and there are valuable assets.
Maybe he gets an negotiated extension — I don’t see it with the Trib bleeding cash and their viability still in question, but hey — but he better have something better to say than “I can’t pay you now, because I’d be at a tax disadvantage to do so”.
by Damen Jackson on Oct 10, 2008 6:59 PM CDT up reply actions
Zell was on CNBC Wednesday
Yesterday as a matter of fact and all he said about the sale of the Cubs is that there are 5 prospective bidders and he wants the sale to be completed by the end of this year. He expects to be down to 2 bidders very shortly.
http://www.cnbc.com/id/15840232?video=882578361
"Man, this is fun!" - Len Kasper
Yeah, and...
… a year ago he said he wanted the sale to be done by March 31. Didn’t happen.
Mark Cuban said yesterday he expects the sale to be delayed. I’d agree with him.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
saw Cuban before game 2
He was coming out of Cordis Brothers Supper Club on Irving Park. My Uncle yelled out the window “buy the cubs!”, and he yelled back “I’m trying!”
It is my strong opinion that the process is down to Mark Cuban and the Ricketts family
Some of the Wall Street and LaSalle Street names me still technically be in the game, but not really in my view.
"What pressure should I have on me? There's no pressure on me." -- Lou Piniella (10/3/08)
Tom Ricketts has been very visable around Wrigley and Wrigleyville...
….I saw him before game 2 at a local establishment.
I suspect they are front runners.
"When I got to Chicago, fans came to Wrigley Field just to have fun, now they come to see us win. The expectations have changed, for the players and for the fans. It’s about winning." Kerry Wood, 7/14/08
Isn't Ricketts also a Wall Street / LaSalle Street name?
I mean, their fortune was built on Ameritrade, no?
Even if they are using personal/family funds, wheras the Cannings et al are insitutional investors, is there really that big of a difference?
My next sig line quote will also be from Lou Piniella, and the first word will be either "Look", or "Listen", followed by a comma.
I see a distinct lack of linkage around here...
…so here’s an article from today’s Sun-Times with Cuban’s most recent comments on the sale. It would be something if one of the many consequences of the current financial crisis is that it allows Cuban to win out and buy the Cubs.
"I see I'm not the only one around here who can't hold his water." - Final words of the water pipe in the visiting team dugout, Dodger Stadium, October 4, 2008.
I'm no financial expert....
…but I know enouph to say this what Cuban says makes perfect sense. If the financing piece of this is up in the air with these crazy markets, I would think its highly unlikely the deal can go through.
The big question is how it takes the financial markets to stablalize a bit – 3 months, 6 months 9 months, I don’t think anyone really knows.
Its probably likely that Zell owns this team at least through the middle of next season and maybe further.
"I don't like them fellas that drive in two runs but let in three" Casey Stengel
This makes the most sense.
And, assuming that the team has made money this year (and I can’t believe it hasn’t), I’d assume Zell would give Crane Kenney and Jim Hendry the green light to do what’s needed to make 2009’s team a winner, too.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
Doesn't Zell still own a small slice of the Sox?
I keep hearing varying reports. I know baseball let Zell originally twist some rules in buying the Cubs because he was supposed to flip them quickly. Well, this is dragging on. If he even owns a snippet of the Sox and Cubs doesn’t this violate a rule forbidding ownership in multiple clubs, and the conflicts of interest it would generate?
There's no conflict.
Zell has no say in the running of the white Sox, and IIRC his stake in the Sox is through some family member.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
I think your right...
…and since Reinsdorf and Zell are both in the real estate business, Zell probably through him a few bucks when Reinsdorf bought the Sox as a favor.
Honestly, I don’t think Zell gives a rat’s ass about baseball and he has said this in so many words. It might not be a bad thing that he has this thing for a while longer, because his reputation is to let those that are doing well (which from a money standpoint the Cubs have) go ahead and do their thing.
He may just tell Kenney – go out and spend what you have to to get the job done.
"I don't like them fellas that drive in two runs but let in three" Casey Stengel
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