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Cubs Valuation Now $2 Billion, And Some Of The Team Will Be Sold

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Here's one measure of how the Cubs are doing, and some news you might have forgotten about.

Jonathan Daniel

This Sports Business Daily article caught my eye, and specifically for this passage:

Sports team prices continue to soar, with values placed on the Chicago Cubs, Atlanta Hawks, Brooklyn Nets and even Chivas FC of MLS now all pegged at once unthought-of levels.

Each of the teams is either in whole or partly for sale.

The Cubs’ value, calculated for the team’s current sale of around 20 percent of the club, is in excess of $2 billion, sources said, with that process expected to finish soon. Galatioto Sports Partners is managing the sale. GSP representatives declined to comment.

If you're saying "current sale of around 20 percent of the club" in relation to the Cubs and thinking, "What?", here's an article from last spring that should refresh your memory:

Four and a half years after buying the Chicago Cubs and related interests for $845 million, the Ricketts family is considering offloading a piece of its investment.

Cubs spokesman Julian Green confirmed ESPN.com and other published reports Thursday that the family will explore selling minority shares in order to finance the proposed $500 million renovation of Wrigley Field and redevelopment around the stadium, including a plaza and hotel.
So now we know, from the SBD article, that the Cubs are in fact doing this. The ESPN Chicago article mentioned:
Asked if he would sell up to 25 percent, Ricketts said, "It would be south of that in my mind."

20 percent is, of course, "south" of 25 percent, and according to the SBD article, such a sale is about to close. We don't know who the buyer or buyers of this 20 percent are, but given the valuation of "in excess of $2 billion," we do know that 20 percent of that is at least $400 million, theoretically enough to finance most if not all of the renovation plan, which is what was mentioned in the ESPN Chicago article from last spring.

I assume that when this sale is complete, we'll get further details. But I thought you'd like to see this now.