Old North Side Ball Yard To Be Sold With Cubs
by blackhawk24 on May 13, 2008 6:48 AM CDT
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PrintWell, that sales tax growth-related plan (read as tax-subsidized gift to Sam Zell)wasn't going to work with the city, so big Jim [Thompson] was going with plan-B by trying equity seats rights to get the sale of the ball park to the state completed.
Zell needs to sell the team and ballpark to retire $13B of debt remaining from his leveraged buyout last year.
This is the gimmick where certain (read as the best) seats would be sold, like a mortgage either fixed or an agreed-upon variable, likely rising rate for a given time period. The amortization of these seats would then be used to renovate the park. Some of the numbers being thrown around were 20% of the seating, about 8,000 seats would raise monies in the neighborhood of $300M.
Since Zell and Kenney think it would violate the IRS code and be against MLB rules, they decided against this type of plan, who's inventor is trying to patent.
Bottom line is Zell is going to package the shrine at 1060 W. Addison with the Cubs.
So with the whole entire ruckus over these past several months, we should finally see the sale process accelerate.
In other news, Zell is selling Tribune Co's NY Newsday paper for $650M.
http://www.suntimes.com/news/politics/946163,CST-NWS-wrigley13.article
MLB offices is reviewing the Cubs books now and if approved will forward to the bidding parties. Only parties mentioned are the old cronies club (Selig and Reinsdorf) headed up by John Canning, the Ricketts family of Omaha and our buddy Mark Cuban. Nowhere is Don Levin mentioned; that is disappointing to say the least.
This is a FanPost and does not necessarily reflect the views of SB Nation or Al Yellon, managing editor (unless it's a FanPost posted by Al). FanPost opinions are valued expressions of opinion by passionate and knowledgeable baseball fans.
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It was my understanding...
that there would be no math….haha, just kidding. This was a great diary. I kind of figured that there’d really be no way to sell the park apart from the team, but thanks for hashing out the financial details of exactly why it won’t happen. I really hope you’re right about the sale process speeding up and I echo your disappointment over the absence of Don Levin.
"I've always felt that starting pitching is the most important part of the rotation." - Joe Morgan, Sunday Night Baseball 8-12-07
The article says...
.. the following:
One said to have the inside track is a partnership headed by John Canning Jr., chairman of Madison Dearborn Partners LLC and a Selig friend.Competing bidders include Dallas Mavericks owner Mark Cuban and J. Joseph Ricketts, founder of TD Ameritrade.
That says “include”. It doesn’t exclude the possibility that there are others, and I know I heard there are at least four and maybe six groups or individuals that have been approved to look over the books.
This is good news about Wrigley Field, I think. We all want it renovated and to be the home of the Cubs for decades to come. But the new owner, rather than the state, is perhaps the best person/group to do this.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
The 'include' is a writer's way
to be factual and not be accused of missing anything.
If Levin were more involved, he’d be on that list. This is especially true given his local appeal and how well he runs his businesses. I heard the 4-6 possible owners list too but why would Levin’s name not be on there if he were truly getting a copy of the books. It has all the beauty of a local good guy buying the team he cheered for as a kid. What a story…!
Don't be so sure.
Levin likes to stay out of the public eye. I know he wanted to see the books. That’s by no means a complete list.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
Oh I hope you're right
but how can he steer clear of the public side of things when he has to file to see the books?
by blackhawk24 on May 13, 2008 10:00 AM CDT up reply actions
That doesn't mean he has to trumpet it in the papers.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
Al
This article from last week makes it clear who the six bidders getting the financial information are.
1) Canning
2) Cuban
3) Ricketts
4) Mandler and Anixter
5) Tokarz
6) Begel
And Begel is not expected to be a serious bidder.
I’ve said from the beginning that Don Levin would not be a player for the Cubs. It’s just not going to happen. Really, the first three names on that list are the only serious candidates, IMO.
It's a girl! Born 1-18-08. 2246 PST. 8 lbs. 1 oz.
by Josh Timmers on May 13, 2008 12:16 PM CDT up reply actions
Too bad, because...
... Don Levin would be a better choice than any of the above list.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
If Levin had bought the Cubs
I think he’d have been forced out by his minority owners pretty quickly. He doesn’t strike me as having enough money to keep other people with a lot of money in line.
I know no one is going to own 100% of the team, but if you don’t have someone owning at least a third of the team (and preferably a lot more), he’s got to be looking over his shoulder all the time at other billionaires looking to be Managing General Partner. And then who knows who would end up with control of the team?
It's a girl! Born 1-18-08. 2246 PST. 8 lbs. 1 oz.
by Josh Timmers on May 13, 2008 2:58 PM CDT up reply actions
Don't forget...
... it isn’t always the guy with the most money who becomes Managing General Partner. Also, it was my impression from hearing about Levin that he wasn’t in a group—he was going to buy the Cubs himself.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
Levin would likely own the team outright
He’d not only be doing this himself, he’d be securing his financing himself.
Correct, and...
... you’d think that would be attractive to a potential seller (Zell). Levin, IIRC, said a year ago that he could get the deal done in 90 days or less.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
One more note on that
is the numbers being “thrown around”, mostly tied to Forbes assessment of the team’s “value” with the ballpark this time last years was “only” $650M, coincidentally the sale price of NY Newsday of Long Island.
I kinda remember that number too...
...but I think any prospective owner would have to factor in the expected renovation cost to Wrigley, which seems to be around the $300-350M mark. Add that to the $650M and maybe that’s why all the starting numbers for the whole shebang (team and park) seem to be around $1B.
Lou Brown: "My kinda team, Charlie, my kinda team..."
Still on the table
Do I get an “I told you so”? This thing never made any sense because the package is stronger than the parts. Breakup artists like Zell always want to look at the market value of the parts but the buyer, Big Jim is, shall we say it nicely, unreliable. Please note that the Stadium naming rights are still on the table and from what I can see Zell needs a quick cash infusion for his media companies.
I want my Macias!
THompson was on WGN radio this morning..
He said
a)Zell told him he was sending him a letter and when Thompson got the letter, to call him back. Thompson took this as they are still in the ballpark for purchasing the stadium. Thompson said this is just negotiations.
b)Thompson said there is no truth to the statement that the deal is illegal. He said it does not violate any IRS rules.
c)He also said that the stadium authority & Zell have signed confidentiality agreements so he can’t talk about specifics
Kasey
See the Cubs 2008 schedule (with TV schedule & game-by-game results) at http://ignarski.tripod.com/sched2008.html
I agree with you that...
... this may be just part of negotiating, and that they could still restructure the deal. OTOH, Zell isn’t your typical CEO and he might just say “Screw it” and move on.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
Zell
doesn’t have the time to sit around and haggle. He’s got to move on because he’s got a huge debt payment due.
It's a girl! Born 1-18-08. 2246 PST. 8 lbs. 1 oz.
by Josh Timmers on May 13, 2008 12:22 PM CDT up reply actions
josh
selling Newsday fits the payment for this year on the debt, the rush isn’t on to sell the Cubs.
BTW, the Trib now says what Thompson said.
http://www.chicagotribune.com/business/chi-wrigley-field-zell-web-may14,0,6866702.story
He's still got
more debt.
And “The Trib” isn’t saying anything. All that article does is quote Thompson. There’s no independent source saying that what Thompson says is accurate.
It's a girl! Born 1-18-08. 2246 PST. 8 lbs. 1 oz.
by Josh Timmers on May 13, 2008 3:14 PM CDT up reply actions
I find it strange that the Tribune
has nothing about this.
I'm sure "The Bright One"
will pick up the slack….
"I've always felt that starting pitching is the most important part of the rotation." - Joe Morgan, Sunday Night Baseball 8-12-07
by gary varsho on May 13, 2008 10:25 AM CDT up reply actions
They did have something about a week ago
Obviously it didn’t include anything about Zell rejecting the state’s offer, but it did make mention of the seat equity plan, as well as the short list of potential owners who would be given access to the books – no Levin as I recall. I referenced it in one of the game/recap threads along with a link. I’ll try to find it again.
Lou Brown: "My kinda team, Charlie, my kinda team..."
Here’s a link to my BCB post (and the ensuing Levin, Cuban, Anixter, Canning commentary thread… well, mostly Cuban)
http://www.bleedcubbieblue.com/2008/5/7/482052/of-jinxes-and-homers-and-l#5737919
and here’s a link to the original Tribune article
http://www.chicagotribune.com/business/chi-wed-cubs-sale-may07,0,4151881.story
Lou Brown: "My kinda team, Charlie, my kinda team..."
This is becoming a joke...
with all the moves and back and forth “talking” it could be next summer before we see an ownership change. At some point MLB should step in and force Zell’s hand. Not that the Cubs deserve special treatment, but especially because they are the Cubs. One of the marquee franchises in the league shouldn’t go into consecutive off-seasons without proper GM authority and personnel plans.
As a potential buyer, the fact that this hemming and hawing has already cost me an extra $12mil or so to Zambrano would make me mad. Couple that with the idea that Wrigley should be sold to the state and the Cubs should sign a lease agreement so the new owner doesn’t “threaten” a move to the suburbs and it’s just fuel to the fire. As if the new owner (who’s going to have billions) isn’t business savvy enough to know that day games and Wrigley is his gravy train.
I don't think it's cost an extra $12m to Zambrano.
Consider the 5/90 deal he got. Consider the year he’s having this year. If he has a Cy Young year this year, that 5/90 deal will look like a bargain.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
That's true...
but what I was referring to was the deal that the team had agreed to at the start of last season. I don’t remember the exact numbers and couldn’t find them with a quick google search but the Cubs and Z had agreed to a 5/80 something deal at the start of last season. Then the Cubs decided they were selling the team and pulled the offer. Z pitched fairly well during the season so they had to increase their offer to the deal that he ended up getting. That’s the extra money I was talking about.
Renovations....
I’ve said it before and I’ll say it again: If it’s going to cost $350 just to RENOVATE Wrigley Field, then throw in another couple hundred million and build a SPANKING, BRAND NEW stadium that will really last a more than a few decades.
"Hey-Hey! Home Run! Attaboy Ronnie!" ~ Jack Brickhouse
Why not
Just rebuild the WHOLE concourse and leave the bleachers, ivy and scoreboard. The bleachers are fairly new.
"Hey.....Cubs win!!!" ---Harry
"Swung on belted!!!"---Chip
Because.....
A brand new stadium with state-of-the-art scoreboard would be better. You can always regrow the ivy if needed. This is the 21st century! The bullpens on the along the foul lines are especially a joke. Hairston could have seriously injured himself last night going after that foul ball.
"Hey-Hey! Home Run! Attaboy Ronnie!" ~ Jack Brickhouse
Well I disagree
You make a fair argument, but i would prefer to walk out on my porch and still see the back of the scoreboard then hear loud music coming from him. Baseball should be played in an baseball stadium and not an amusement park.
The concourse is the problem not the bleachers and scoreboad, if you need constant replays go to Milwaukee
"Hey.....Cubs win!!!" ---Harry
"Swung on belted!!!"---Chip
And if he really wants sensory overload
go to PHX. It’s come to the point that there is this insane trend the past 20 years that there must be all this noise, flashing lights and gimmicks going on for the entire length of the game. Like the game itself is becoming just a part of entertainment instead of the real reason to be going to the arena/stadium/field. Nothing is a worse example of this than the NBA. Unfortunately with places like that shithole in downtown PHX, MLB is closing in on an NBA-like experience…sensory overload.
And I'd rather go to the ballpark that
stands for baseball the way its supposed to be. What you call a ‘joke’ is the way it was for over 100 years.
And for the injury potential…that can be argued on many fronts, seven ways of Sunday.
never.
2008: The year we put it all together.
by drewishdrewid on May 13, 2008 9:55 PM CDT up reply actions
Scoreboard...
The Wrigley scoreboard is a joke. Even Fenway Park upgraded theirs with a Jumbotron that shows players’ pictures, stats as well as instant replays.
"Hey-Hey! Home Run! Attaboy Ronnie!" ~ Jack Brickhouse
Never.
2008: The year we put it all together.
by drewishdrewid on May 13, 2008 9:55 PM CDT up reply actions
What's a joke is that comment
You have absolutely no understanding of what that scoreboard means to the ballpark. Its why the scoreboard has landmark status protection. AND if its such a joke, how come so many of these newer stadiums are beginning to adapt various facets of the Wrigley scoreboard? Take a look at stadiums built the last 15 years. Every single one of them have facets of Wrigley built in, some subtle, some more noticeable.
Ron Santo's lawyers called
and after that scoreboard comment, they’re considering suing you and your user ID for defamation of character…
Lou Brown: "My kinda team, Charlie, my kinda team..."
More followup to the sale
There’s more detail on the requirements Zell must adhere to regarding the leveraged buyout. Looks like the Newsday sale will cover him for the payment needed this year, due 04Dec.
Here's the key paragraph of that article
Sources involved in the bidding process said word is filtering back to those potential buyers that Tribune Co. is saying it will hold onto the team rather than sell at distressed prices if would-be buyers drop their prices too steeply in anticipation of having to pay for Wrigley Field renovations themselves.
Bingo. IMO, the club will not be sold before the end of the calendar year.
"That's my opinion and if you don't like it, well, I have others." ~ Groucho Marx
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