Cubs deal inked

by Allie on Aug 21, 2009 4:06 PM CDT Comment 28 comments

Tribune Co. says it has signed an agreement to sell the iconic franchise to the Ricketts family.

Tribune 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.

Thanks to JB23: Crane Kenny will be on ESPN 1000 at about 4:15pm

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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Is it really happening??!?!?!?

"Brant Brown...DROPS THE BALL!!!!"

by cubswgnrocks on Aug 21, 2009 4:08 PM CDT reply actions 0 recs

IT'S HAPPENING!?!?!?!?!?

COOL BEANS!

by lexmarklover on Aug 21, 2009 6:19 PM CDT up reply actions 0 recs

So

Are the Ricketts the owners right now?

by jerry morales rules on Aug 21, 2009 4:09 PM CDT reply actions 0 recs

oh

Nevermind. We still need MLB approval.

by jerry morales rules on Aug 21, 2009 4:09 PM CDT up reply actions 0 recs

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...!

by blackhawk24 on Aug 21, 2009 4:22 PM CDT up reply actions 0 recs

Finally, I can sleep at night

I haven’t had a good shut-eye in 2 years.

by Cubbiegoon on Aug 21, 2009 4:09 PM CDT reply actions 0 recs

Not gonna watch the game tonite?!

Just win the next game...!

by blackhawk24 on Aug 21, 2009 4:24 PM CDT up reply actions 0 recs

You beat me to it...... ;)

Crane Kenny will be on ESPN 1000 at about 4:15pm

by JB 23 on Aug 21, 2009 4:09 PM CDT reply actions 0 recs

I'll add that to the post

:-)

Jerry’s been so distant lately and Lovie barely calls.- Just Dave

by Allie on Aug 21, 2009 4:11 PM CDT up reply actions 0 recs

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.

by chilango2 on Aug 21, 2009 4:10 PM CDT reply actions 0 recs

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

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

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...!

by blackhawk24 on Aug 21, 2009 4:24 PM CDT up reply actions 0 recs

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.

by tharr on Aug 22, 2009 1:16 AM CDT up reply actions 0 recs

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 blackhawk24 on Aug 25, 2009 5:34 PM CDT up reply actions 0 recs

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.

by tharr on Aug 22, 2009 1:13 AM CDT up reply actions 0 recs

Posted on front page for further discussion

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

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

$845M

Guess Ricketts did do their homework when it came to the true value of the broadcasting contracts.

Just win the next game...!

by blackhawk24 on Aug 21, 2009 4:25 PM CDT reply actions 0 recs

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

by MPH73 on Aug 21, 2009 4:26 PM CDT up reply actions 0 recs

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...!

by blackhawk24 on Aug 21, 2009 4:56 PM CDT up reply actions 0 recs

by blackhawk24 on Aug 25, 2009 5:35 PM CDT up reply actions 0 recs

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.

by tharr on Aug 22, 2009 1:18 AM CDT reply actions 0 recs

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

by Al Yellon on Aug 22, 2009 8:02 AM CDT up reply actions 0 recs

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.

by tharr on Aug 23, 2009 1:13 AM CDT up reply actions 0 recs

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

by Al Yellon on Aug 23, 2009 9:02 AM CDT up reply actions 0 recs