Utay & Tribune also reach a deal for the Cubs

Apparently, Zell has agreed to sell the Cubs to two different groups.

Tribune Co has agreed to terms for the sale of the Chicago Cubs to a group led by private equity investor Marc Utay, giving the company two offers to submit to the bankruptcy court, two sources familiar with the sale process said on Tuesday.

over 2 years ago bobby h 49 comments 0 recs |

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He's a New Yorker

http://www.chicagobusiness.com/cgi-bin/article.pl?page_id=2317&plckController=Blog&plckScript=blogScript&plckElementId=blogDest&plckBlogPage=BlogViewPost&plckPostId=Blog%3af5555513-c950-4657-a93a-80db16fdf4adPost%3a6d7e2510-4bd7-4bf8-866e-7fcedf419550&sid

I don’t know how to format links but an article giving you a little more info. about him.

by ak123 on Jul 7, 2009 12:48 PM CDT reply actions

Goodness

Why am I not surprised that Zell is pulling something like this?

by Hilary Lee on Jul 7, 2009 12:50 PM CDT reply actions

It his obligation to submit the highest bids.......

during a bankruptcy proceeding

"We got some pretty good chemistry here. We got some toughness, and it's starting to show." - Lou Pinella

by Clutche on Jul 7, 2009 12:52 PM CDT up reply actions

The Cubs

aren’t part of the bankruptcy, so I doubt there is actually such an obligation.

by Hilary Lee on Jul 7, 2009 12:55 PM CDT up reply actions

The Cubs bid...

…does need to be approved by the bankruptcy court as well as MLB

"...the internet is not something you just dump something on. It's not a truck. It's a series of tubes." - Sen. Ted Stevens

by bobby h on Jul 7, 2009 12:56 PM CDT up reply actions

As a formality, yes

But if there was some obligation for the Tribune company to submit the highest bids, there wouldn’t have been an exclusive negotiating process with the Ricketts.

by Hilary Lee on Jul 7, 2009 12:57 PM CDT up reply actions

it was never exclusive.........

it was put up for bids

"We got some pretty good chemistry here. We got some toughness, and it's starting to show." - Lou Pinella

by Clutche on Jul 7, 2009 12:58 PM CDT up reply actions

Uh...

The Ricketts had been negotiating with the Tribune company exclusively for the last several months before Utay was contacted again.

by Hilary Lee on Jul 7, 2009 12:59 PM CDT up reply actions

Utay was one of three finalists in the bidding process................

so Ricketts wasn’t negotiating exclusively

"We got some pretty good chemistry here. We got some toughness, and it's starting to show." - Lou Pinella

by Clutche on Jul 7, 2009 1:03 PM CDT up reply actions

I don't know where you get that

This is from the article that was just posted:

“Last month, Tribune reopened talks with private equity investors Utay and Leo Hindery in a move that some analysts saw as a way to pressure Ricketts, CEO of Chicago investment bank Incapital LLC and son of the founder of TD Ameritrade Holding Corp, into settling on terms sought by the media company.”

Prior to this happening, the Tribune had been negotiating the final deal with the Ricketts group exclusively.

by Hilary Lee on Jul 7, 2009 1:04 PM CDT up reply actions

link?

"We got some pretty good chemistry here. We got some toughness, and it's starting to show." - Lou Pinella

by Clutche on Jul 7, 2009 1:08 PM CDT up reply actions

The link is right up there

In the original post.

by Hilary Lee on Jul 7, 2009 1:08 PM CDT up reply actions

Doesn't this really prove my point?.....

talks reopened last month with Utau, so obviously, Ricketts was not an exclusive. And it’s FACT that Utay was one of the three original bidders.

"We got some pretty good chemistry here. We got some toughness, and it's starting to show." - Lou Pinella

by Clutche on Jul 7, 2009 1:15 PM CDT up reply actions

Utay

"We got some pretty good chemistry here. We got some toughness, and it's starting to show." - Lou Pinella

by Clutche on Jul 7, 2009 1:17 PM CDT up reply actions

No....

It doesn’t. Because what I was saying was that talks HAD BEEN exclusive with Ricketts UNTIL last month when they contacted Utay again. And that, were it the case that every bid had to be submitted to the bankruptcy court / the court had to choose the highest one, there would NOT have been any exclusive negotiating period in the first place. As well, the article states (as do other articles on the Trib) that talks were reopened with Utay not because the Trib was required to submit multiple or all bids to the court, but because they wanted to pressure Ricketts into agreeing to certain issues on their terms.

by Hilary Lee on Jul 7, 2009 1:17 PM CDT up reply actions

no.........you said last SEVERAL months

it was never exclusive…..Utay was an original bidder, and if you believe for a minute that talks were not ongoing then your being naive.

"We got some pretty good chemistry here. We got some toughness, and it's starting to show." - Lou Pinella

by Clutche on Jul 7, 2009 1:41 PM CDT up reply actions

What I think you might be missing...

is that Utay was an original bidder, as were Cuban and the other groups. At some point in the past the Ricketts group was chosen as the “winner” of the bidding process and as such was granted an exclusive negotiating window. During that window they were supposed to work out all the technicalities of the sale with the Tribune Co (Zell), and Zell’s insistence on avoiding capital gains taxes dragged that process out past the window.

After that window passed, then they contacted Utay’s group, maybe in earnest, maybe to pressure the Ricketts group to get the sale completed the way Zell wants or risk losing it to another bidder who would.

by CubFan81 on Jul 7, 2009 1:52 PM CDT up reply actions

Yes.

That’s what I was trying to say.

by Hilary Lee on Jul 7, 2009 1:53 PM CDT up reply actions

I understand what you're saying, but..........

until an offer is submitted and accepted by the bankruptcy count there is no exclusive negotiating window. And I don’t believe for a minute that Utay was just recently contacted, but instead, was negotiating behind closed doors.

"We got some pretty good chemistry here. We got some toughness, and it's starting to show." - Lou Pinella

by Clutche on Jul 7, 2009 2:06 PM CDT up reply actions

head bangs into wall

by Hilary Lee on Jul 7, 2009 2:21 PM CDT up reply actions

wall crumbles

"We got some pretty good chemistry here. We got some toughness, and it's starting to show." - Lou Pinella

by Clutche on Jul 7, 2009 2:26 PM CDT up reply actions

This is what I said:

“Uh…
The Ricketts had been negotiating with the Tribune company exclusively for the last several months before Utay was contacted again.”

HAD BEEN negotiating exclusively for the last several months BEFORE Utay was contacted again. I don’t understand what isn’t clear about that statement.

And we know that he had been negotiating exclusively with Ricketts because the Tribune company said so and because the talks with Utay were only re-opened last month. It’s not naive to believe what the Tribune company and the Ricketts group said was ongoing.

by Hilary Lee on Jul 7, 2009 1:52 PM CDT up reply actions

You don't really believe what the Tribune says.........

do you?

"We got some pretty good chemistry here. We got some toughness, and it's starting to show." - Lou Pinella

by Clutche on Jul 7, 2009 2:18 PM CDT up reply actions

yes it does........

it’s a Tribune asset

"We got some pretty good chemistry here. We got some toughness, and it's starting to show." - Lou Pinella

by Clutche on Jul 7, 2009 12:57 PM CDT up reply actions

It being a major asset

Is why the court needs to approve it as a formality. However, because it isn’t part of the bankruptcy proceedings, it is my understanding that rules any such rules about submitting all bids / highest bids to the court would not apply.

by Hilary Lee on Jul 7, 2009 12:58 PM CDT up reply actions

Any asset bid on, including the Cubs and Comcast,, must be submitted

"We got some pretty good chemistry here. We got some toughness, and it's starting to show." - Lou Pinella

by Clutche on Jul 7, 2009 1:00 PM CDT up reply actions

We already

agreed that it has to be approved by the bankruptcy court. What you are saying, however, is that EVERY bid on the team must be submitted to the court and that the court must take the highest bid. I am saying this is not correct and that were it the case there would not have been an exclusive negotiating process with the Ricketts for as long as there was.

by Hilary Lee on Jul 7, 2009 1:03 PM CDT up reply actions

Even still...

Normally a deal’s a deal. From a business standpoint, this is a rather bizarre negotiating tactic.

"...the internet is not something you just dump something on. It's not a truck. It's a series of tubes." - Sen. Ted Stevens

by bobby h on Jul 7, 2009 12:56 PM CDT up reply actions

Why?

Because all along Zell wanted a highly mortgaged deal (tax savings); Utay’s does that more than Ricketts and the total price if I understand correctly, is higher than Ricketts (greater overall profit).

Just win the next game...!

by blackhawk24 on Jul 8, 2009 10:10 PM CDT up reply actions

Eh didn't realize this was old news

He was one of the 3 final bidders back in January when the news came out.

by ak123 on Jul 7, 2009 12:50 PM CDT reply actions

Anyone who expected this to be over soon is wrong.

However, I’m guessing the bankruptcy court takes the offer with more cash.

"You can observe a lot just by watching." ~ Yogi Berra

by Al Yellon on Jul 7, 2009 12:53 PM CDT reply actions

I would hope so

Though if I were the lawyers working on the deal for the Ricketts I wouldn’t be too thrilled about this right now…

by Hilary Lee on Jul 7, 2009 12:54 PM CDT up reply actions

Correct, the court is obligated to take the highest bid...........

as long as the bidder has the financing to complete the transaction

"We got some pretty good chemistry here. We got some toughness, and it's starting to show." - Lou Pinella

by Clutche on Jul 7, 2009 12:56 PM CDT up reply actions

I really don't think

that you are correct on this point.

by Hilary Lee on Jul 7, 2009 12:58 PM CDT up reply actions

A higher amt of cash - which Ricketts is supposed to have

also counts and may count more than the final price. As I understand, Ricketts proposal may be as much as $200M more cash than Utay, though Utay’s total amount could be $50-75M more than Ricketts.

Just win the next game...!

by blackhawk24 on Jul 8, 2009 10:12 PM CDT up reply actions

My understanding is that you can only submit one offer to the bankruptcy court.

The court only decides whether to accept or deny that specific bid. So it is up to Zell and the tribune Co to select the bid they want —only then does it progress into the bankruptcy court stage for approvfal. Can anyone in the finance world confirm or deny this?

"Cubs Win, Cubs Win, CUBS WIN!"

Steve McMichael: "I'm going to have to have a talk with that umpire down there." Angel Hernadez then ejected McMichael. 08/07/2001

by MandMexpress12 on Jul 7, 2009 3:19 PM CDT up reply actions

Utay sounds like pig latin.

I've committed to tweeting about the Cubs for the rest of the season. (Does that sound as ridiculous as I think it does?) Anyway, if you're on Twitter, you can follow me here.

by daver on Jul 7, 2009 12:56 PM CDT reply actions

lol

"We got some pretty good chemistry here. We got some toughness, and it's starting to show." - Lou Pinella

by Clutche on Jul 7, 2009 12:58 PM CDT up reply actions

Utay

I thought he was Saddam Hussein’s batsh*t crazy son. He’s supposed to be dead, so it can’t be good if he’s trying to buy the Cubs now.

by Mike Vails Evil Twin on Jul 7, 2009 1:07 PM CDT up reply actions

He buys the team and the terrorists win!

I've committed to tweeting about the Cubs for the rest of the season. (Does that sound as ridiculous as I think it does?) Anyway, if you're on Twitter, you can follow me here.

by daver on Jul 7, 2009 1:50 PM CDT up reply actions 1 recs

It actually surprises me...

…that there isn’t language in the Ricketts agreement that guarantees the exclusivity of the agreed upon bid unless there is some breach of contract on the part of the Ricketts group.

"...the internet is not something you just dump something on. It's not a truck. It's a series of tubes." - Sen. Ted Stevens

by bobby h on Jul 7, 2009 1:07 PM CDT reply actions

Thats really going to hurt Zells ebay rating

Okay, just so I understand it... in your wildest fantasy, you are in hell. And you are co-running a bed and breakfast with the devil.

by bren on Jul 7, 2009 1:14 PM CDT reply actions

Zell may be ugly and crude..........

but he’s nobodies fool

"We got some pretty good chemistry here. We got some toughness, and it's starting to show." - Lou Pinella

by Clutche on Jul 7, 2009 1:16 PM CDT up reply actions

Y'know, just the other day...

…I was thinking how cool it would be if there was a baseball player named “Eric Bay” or “Edwin Bay” so his nickname would be eBay. Just a little insight into what goes on in my head on a daily basis.

I've committed to tweeting about the Cubs for the rest of the season. (Does that sound as ridiculous as I think it does?) Anyway, if you're on Twitter, you can follow me here.

by daver on Jul 7, 2009 1:52 PM CDT up reply actions

Send a note to Jason Bay to name his firstborn son Eric...

… and then train him to be a major league baseball player.

It’ll take 20 years, but you’ll get your wish.

"You can observe a lot just by watching." ~ Yogi Berra

by Al Yellon on Jul 7, 2009 1:57 PM CDT up reply actions

I think he inspired the idea!

I was listening to sports radio in the car and Jason Bay’s name came up and…well…my mind went to wandering…

I've committed to tweeting about the Cubs for the rest of the season. (Does that sound as ridiculous as I think it does?) Anyway, if you're on Twitter, you can follow me here.

by daver on Jul 7, 2009 3:07 PM CDT up reply actions