Bleed Cubbie Blue: An SB Nation Community

Navigation: Jump to content areas:


Sports blogs for fans, by fans.
New Blog: World Soccer Digest for Soccer Fans!

Sam Zell's days as a media titan in Chicago are nearly over.


From the Sun Times

Star-divide

So much for the master. 

The motorcycle-riding billionaire, renowned for his deft touch with real estate and corporate turnarounds, took Tribune Co. private in late 2007 promising to energize the lumbering company. He piled on debt at exactly the wrong time, and a collapse in advertising for traditional media forced him to take the company to Chapter 11 bankruptcy.

<!-- BlogBurst ContentStart -->

Eight months after the filing, two sources familiar with the process said creditors are working on a reorganization plan that elbows Zell aside. The creditors, including investment banks owed $8.6 billion from Zell's Tribune takeover, would stage a takeover of their own and sell off the company's newspapers and broadcast stations as they see fit.

"The banks will be in charge," one insider said, adding that they are growing impatient with Zell's stewardship. The bankruptcy court on Monday granted Zell extended time, until Nov. 30, to be the first to file a reorganization plan. Creditors have to wait at least that long before filing their own plan with the court.

They don't pull any punches.

"This was a textbook case of a leverage buyout gone bad," said Brandt, president of Development Specialists Inc. "These were imbeciles who had no idea what they were doing."

So, this shouldn't change anything, except, perhaps, people's perceptions of Sam Zell as some kind of financial mastermind.  He took on too much debt and waited too long to sell assets.

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.

0 recs  |  Comment 14 comments

Story-email Email Printer Print

Comments

Display:

Looks like just another sad chapter in Cubs ownership.

Maybe Ricketts will finally get it right.

#zellfail

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 dat cubfan daver on Aug 14, 2009 12:12 PM CDT reply actions   0 recs

And it's why he was so arrogant about trying to get more for the Cubs

all the while the economy was under a total collapse.

Think back….April, 2007. No one heard yet about Bear Stearns. There were no talks about TARP and spending bills, Government Motors; anything. There wasn’t 9.5% unemployment and a myriad of problems in the housing market. Yet this guy who was supposed to be so smart, tried to eek $1B+ out of the Cubs sale all the time when the economy was going to hell in a handbasket.

Just win the next game...!

by blackhawk24 on Aug 14, 2009 12:22 PM CDT reply actions   0 recs

that is how the rich get richer

but when the rich try to stiff the rich, it doesnt work usually

baseball is a game of outs......pop out, ground out, line out, pitch out, strike out, fly out, and Fox and Bud's favorite black out

by Cubbie-Tim on Aug 14, 2009 1:02 PM CDT up reply actions   0 recs

Yawn.

Irrelevant to the Cubs sale. The Cubs sale will happen when it does, likely not till after the season is over.

Linky with more info

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

by Al on Aug 14, 2009 4:21 PM CDT reply actions   0 recs

I know

nevertheless, I thought it was interesting.

Forget all that other stuff. I gotta believe.

by drewishdrewid on Aug 14, 2009 4:44 PM CDT up reply actions   0 recs

Probably Irrelevant

It does put presure on Zell to complete the sale before November 30, when he is scheduled to file his reorganization plan. If the Cubs aren’t sold by then, and the Tribs creditors seek to change management, everything could change. New management could restart the sales process, although that seems unlikely.

by John in DC on Aug 14, 2009 4:53 PM CDT up reply actions   0 recs

Rec'd.

"I won't insult your intelligence by suggesting that you really believe what you just said." ~William F. Buckley, Jr.

by Goodie1969 on Aug 14, 2009 6:20 PM CDT up reply actions   0 recs

Well with that login Zell should buy the Chicago Fire

And sit on the team until soccer becomes as popular in the US as it in worldwide…

Great points though, but Zell really dug his own hole here, and it will be very interesting to see the logistics behind him getting out of it unscathed. It will probably be in Business 100 textbooks for many years to come, because I’m sure he’ll end up making money off the deal in the end. (Can we year year-end write offs, kids?)

by lswaidz on Aug 14, 2009 10:11 PM CDT up reply actions   0 recs

Of course...

…he is not a stupid businessman, but if he was honest, I think he would admit that he didn’t have the proper read of what he was getting into with the Trib. He was smart enough to limit his personal exposure, but I’ll guarantee that is no consulation for him as this unravels.

He isn’t used to not being successful, but he also hasn’t ever dealt with a situation with so many variables.

"I don't like them fellas that drive in two runs but let in three" Casey Stengel

by MPH73 on Aug 14, 2009 11:17 PM CDT up reply actions   0 recs

Agreed.

One should also be wary of believing every word of an obvious attack piece from one of the Tribune Co.’s biggest local print competitors.

by cublessinmilwaukee on Aug 14, 2009 5:23 PM CDT reply actions   0 recs

The Real Estate business...

…is a hell of a lot different than the media business, and Zell found out the hard way.

His bull like mentality just doesn’t work well when your main resources are people, as opposed to buildings.

"I don't like them fellas that drive in two runs but let in three" Casey Stengel

by MPH73 on Aug 14, 2009 5:28 PM CDT reply actions   0 recs

It couldn't happen to a "nicer" guy

It’s always enjoyable to watch a pig overstuff himself to the point of sickness.

by bluekoolaide on Aug 14, 2009 6:14 PM CDT reply actions   0 recs

Comments For This Post Are Closed


User Tools

Welcome to Bleed Cubbie Blue, the Chicago Cubs blog for the SB Nation, created on February 9, 2005 by Al Yellon
Start posting about the Cubs »

Join SB Nation and dive into communities focused on all your favorite teams.

FanPosts

Community blog posts and discussion.

Recommended FanPosts

Small
Reversal of opinion...Bradley will not be moved
P272649reg_small
VERY OT: The BT Football, "Congrats to ballhawk" & "Sorry, sue369" Thread
Yelloncard_small
Baseball Picture Puzzles Overflow 1
Derrick_rose_poster_by_rokasm_small
You know you want him, Get it done Jim!
Yelloncard_small
Baseball Player Picture Puzzles

Recent FanPosts

Dscn2381_small
Cubs 2010 2B and "the L word"
Cubswin712_small
Is there anyway we trade some of our high-priced players?
Yelloncard_small
Milton Bradley Named NL "LVP" By Joe Posnanski
Self-portrait-4_small
Crazy Idea: Rob Quinlan
10424_528302137858_173702948_31567344_967269_n_small
OT: Big Ten Football Thread, Nov. 21
Small
Grabow to sign
Small
SI archive story on Sandberg and Salaries
Small
OT -- Head to Evanston to Root on Northwestern -- 11/21 v. Wisconsin
Dscn2381_small
On Harden and the Players Jim Hendry Lets Go

+ New FanPost All FanPosts >

FanShots

Quick hits of video, photos, quotes, chats, links and lists that you find around the web.

Recommended FanShots

FanGraphs calls Grabow a "waste of cash."
Fangraphs hasn't given up on Geo, should you?
Baseball America's Top 10 Cubs Prospects
An animated tribute to the no-hitter that Pirates pitcher Dock Ellis threw on June 12, 1970. Simply...

Recent FanShots

A Chicagoan, Part Of Cardinals Ownership Group, Dies
Making Fun Of Tim Lincecum's Hair...
Would you blow up the farm system for Halladay?
Minor League Ball Interview With Billy Beane
Castillo Rumor Won't Go Away
Minor League FA's
The Cubs Debut of Turk Wendell: A Cautionary Tale Of Classic Cubs History
Slightly OT re: Cards
Lincecum wins NL Cy Young
Kansas City Royals new alt cap, to be worn during home day games. My verdict: ugly. Details here.

+ New FanShot All FanShots >

It Is Only...

Cubs By The Numbers

Cubs By The Numbers is a history of the ballclub by uniform number, but the biographies help trace the history of our beloved team in a new way. For everyone who's a Cubs fan, anyone who ever wore the uniform is like family. Cubs By The Numbers reintroduces readers to some of their long-lost ancestors, even ones they think they already know.

Click here to order your copy, available now!

SPONSORS

Recent Stories in Ticket Exchanges

Yelloncard_small
Ticket Exchanges: Cubs Convention 2010
Yelloncard_small
Ticket Exchanges: General 2009 Ticket Exchange
Yelloncard_small
Ticket Exchanges: September 29-October 4 Homestand

Managing Editor

Yelloncard_small Al

Editorial Cartoonist

Toonmike_small toonmike

Contributors

Dsc_0139_small holy mackerel

100px-boisehawkscaplogo_small Josh77

Small shawndgoldman