Cubs deal inked
by Allie on Aug 21, 2009 4:06 PM CDT
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PrintThanks to JB23: Crane Kenny will be on ESPN 1000 at about 4:15pmTribune Co. said Friday that it signed an agreement to sell the iconic franchise to the Ricketts family. The family is paying about $800 million to acquire a 95 percent interest in a package of assets: the team, Wrigley Field and Tribune Co.'s 25 percent stake in Comcast SportsNet Chicago, which broadcasts many Cubs games on cable television.
The agreement values the franchise and related assets at $845 million, less than the Rickett's winning bid in January of $900 million. Tribune Co. will retain a 5 percent ownership stake in the joint venture.
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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So
Are the Ricketts the owners right now?
by jerry morales rules on Aug 21, 2009 4:09 PM CDT reply actions
oh
Nevermind. We still need MLB approval.
by jerry morales rules on Aug 21, 2009 4:09 PM CDT up reply actions
No....
Now off to the courts, then MLB approval. I’ll guess the deal will finally be 100% done either the GM meetings or Winter meetings.
Just win the next game...!
Somebody with business acumen please help me
Why and will Tribune Co. keep 5 percent of ownership? How will this affect the team long-term?
One day I hope to come up with something worthy of this space.
There are tax reasons to do this.
It won’t affect the team and how it’s run.
"You can observe a lot just by watching." ~ Yogi Berra
Shelters them (TribCo)
from a boat load of cap gains taxes…that is until our gov’t gets wind of it.
I say this only in that the feds are going after people with numbered off-shore accts. As they put it, “tax cheats”.
Just win the next game...!
It has nothing to do
with offshore accounts. There is a tax loophole put into the tax code that allows forgiveness of capital gains taxes if they maintain at least 5% ownership for a certain number of years.
If you like Selig's handling of the steroid issue, you'll love his choice for next Cub owner.
I know it has nothing to do with the off-shore accts
I used that as a follow up because the Gov’t is now going after these people. And in an ironic sort of way, I wouldn’t be surprised if the Gov’t tries to close that 5% loophole.
Just win the next game...!
By retaining 5% ownership
the Trib uses a loophole to essentially avoid the capital gains tax. Without the loophole the Trib would have to pay capital gains on the difference of the cost of the Cubs ($20M) and the sales price (approx. $800M). Too bad everyone can’t get out of paying taxes like that easy.
If you like Selig's handling of the steroid issue, you'll love his choice for next Cub owner.
$845M
Guess Ricketts did do their homework when it came to the true value of the broadcasting contracts.
Just win the next game...!
Or...
…they estimate the short term contract cleanup at $55 mil
"I don't like them fellas that drive in two runs but let in three" Casey Stengel
That'd be funny
TribCo: “Mr. Ricketts, we know we effed up a few contracts, how does $55M off the regular price sound? Deal?!”
Just win the next game...!
$55 million
wouldn’t come close to covering what we owe Soriano.
by Josh Timmers on Aug 22, 2009 11:22 AM CDT up reply actions
that covers about the last 2 1/2 years, right?
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
Then they can trade the rest of it for someone.....
anyone that can be of more value.
Just win the next game...!
The $900M sales price
was reduced because they only sold 95%.
If you like Selig's handling of the steroid issue, you'll love his choice for next Cub owner.
No, the 95% was the plan all along...
… as you pointed out, to avoid capital gains taxes.
The reduction was agreed upon due to the value of WGN’s TV contract going forward.
"You can observe a lot just by watching." ~ Yogi Berra
Al
I’ve been trying to stay on top of this. Can you cite a link to your information. Thanks much,
If you like Selig's handling of the steroid issue, you'll love his choice for next Cub owner.
Here's one...
… from today’s Sun-Times. It doesn’t cite a specific dollar amount, but does suggest that the lower price was due, at least in part, to the value of the TV contract:
But insiders said the Ricketts family held firm and continued to negotiate hard on certain terms — including how Tribune Co. evaluated the Cubs’ broadcasting rights with its corporate cousins at WGN TV and radio and Comcast SportsNet Chicago. Tribune’s 25 percent stake in Comcast SportsNet Chicago is part of the sale to Ricketts.
"You can observe a lot just by watching." ~ Yogi Berra
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