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Sea Ray
12-08-2008, 04:30 PM
It's official. The Tribune Co, owner of the Cubs has filed for bankruptcy protection.

http://money.aol.com/news/articles/_a/bbdp/tribune-files-for-bankruptcy-protection/271439


NEW YORK -Media conglomerate Tribune Co ., smothered by $13 billion in debt and weak prospects for generating cash through advertising, on Monday became the first major newspaper publisher to seek bankruptcy protection since the Internet began siphoning readers from traditional outlets...

I wonder how this chaos will effect the Cubs?

TRF
12-08-2008, 04:38 PM
It's official. The Tribune Co, owner of the Cubs has filed for bankruptcy protection.

http://money.aol.com/news/articles/_a/bbdp/tribune-files-for-bankruptcy-protection/271439



I wonder how this chaos will effect the Cubs?

Contract the Cubs!

In the first round of the contraction draft, with the 8th pick, the Reds select Rich Harden.

Rojo
12-08-2008, 04:40 PM
Does this take them out of the FA market? I wonder how many other clubs are silently out of it.

Big Klu
12-08-2008, 04:49 PM
Krazy Dollar Days at West Addison! :D

oneupper
12-08-2008, 05:08 PM
Does this take them out of the FA market? I wonder how many other clubs are silently out of it.

I'll let some of the lawyers weigh in on this and set me straight, but as far as I know, The Tribune Co...as a holding company is the one filing for bankruptcy. The Chicago Cubs (a subsidiary) is not.

So (and I'm guessing now), the bankruptcy court can't really get into the operations of the Cubs. However, should the Cubs (and I'm thinking Wrigley Field also) be sold, the court would decide how to apply the proceeds to Tribune's creditors.

On the other hand, as part of Chapter 11 proceedings, the Tribune has to submit a restructuring plan. You can presume that selling the Cubs is part of that plan and this time they'll have to go about it seriously and not *****-footing around like they have been for the last year.
I'd say forget about the $625 mm they were talking about.

In any case, I'm guessing the Cubs will have to be operating on a budget that is cash flow positive, because their holding company will not be able to "bail them out" in case of a shortfall.

Chip R
12-08-2008, 05:09 PM
Does this take them out of the FA market? I wonder how many other clubs are silently out of it.


I wonder what it does in regards to selling the team.

redsmetz
12-08-2008, 05:17 PM
I wonder what it does in regards to selling the team.

According to the Tribune's press release, they say, "The Chicago Cubs franchise, including Wrigley Field, is not included in the Chapter 11 filing. Efforts to monetize the Cubs and its related assets will continue."

How do you like that term, "monetize"? I suspect that, since the Cubs are being dealt with seperately, they probably have their own line of credit (or cash reserves) to operate as a ballclub this year.

Chip R
12-08-2008, 05:18 PM
According to the Tribune's press release, they say, "The Chicago Cubs franchise, including Wrigley Field, is not included in the Chapter 11 filing. Efforts to monetize the Cubs and its related assets will continue."

How do you like that term, "monetize"? I suspect that, since the Cubs are being dealt with seperately, they probably have their own line of credit (or cash reserves) to operate as a ballclub this year.

Thanks.

I like that word. Say it real fast.

oneupper
12-08-2008, 05:20 PM
According to the Tribune's press release, they say, "The Chicago Cubs franchise, including Wrigley Field, is not included in the Chapter 11 filing. Efforts to monetize the Cubs and its related assets will continue."

How do you like that term, "monetize"? I suspect that, since the Cubs are being dealt with seperately, they probably have their own line of credit (or cash reserves) to operate as a ballclub this year.

By "monetize" they mean sell.

redsmetz
12-08-2008, 05:29 PM
By "monetize" they mean sell.

Yes, I knew that.

westofyou
12-08-2008, 05:30 PM
By "monetize" they mean sell.
http://www.chicagotribune.com/business/chicago-cubs-bidders-klaff-ricketts-dec01,0,1636493.story

At least 3 bidders for Cubs in new round

By Ameet Sachdev | Tribune staff reporter
1:14 PM CST, December 1, 2008


At least three prospective buyers have submitted a new round of bids to Tribune Co. for the Chicago Cubs, one of professional sports' trophy franchises.

Chicago real estate investor Hersch Klaff; the Ricketts family, founder of online brokerage TD Ameritrade Holding Corp.; and a group led by Marc Utay, a New York private equity investor, delivered their proposals by the Thanksgiving deadline, according to sources involved in the negotiations.

Sources declined to comment on the size of the three bids, which include the team, Wrigley Field and Tribune's 25-percent stake in Comcast SportsNet, a regional cable sports network.

It was unknown at the time this report was filed whether two other prospective buyers -- Houston businessman Jim Crane and Mark Cuban, owner of the Dallas Mavericks basketball team -- had submitted new bids.

While Cuban has expressed ardent interest in the Cubs, he has not been active in the sales process for months, according to a source. His chances to buy the team took a hit when federal securities regulators charged him last month with insider trading.

Cuban and Crane could not immediately be reached for comment. Utay, Klaff and Tom Ricketts, a Chicago bond salesman who is leading the family bid, declined to comment.

The new bids are a boost to Tribune and a sales process that has been stalled by the financial crunch. The Cubs have been for sale since April 2007, when Chicago real estate billionaire Sam Zell reached a deal to take Tribune private and saddle the media company with $13 billion in debt. Tribune owns the Chicago Tribune.

paintmered
12-08-2008, 06:06 PM
According to the Tribune's press release, they say, "The Chicago Cubs franchise, including Wrigley Field, is not included in the Chapter 11 filing. Efforts to monetize the Cubs and its related assets will continue."

How do you like that term, "monetize"? I suspect that, since the Cubs are being dealt with seperately, they probably have their own line of credit (or cash reserves) to operate as a ballclub this year.

It sounds like the corporate equivalent of payflex.

BCubb2003
12-08-2008, 06:14 PM
the Chicago Cubs, one of professional sports' trophy franchises

What trophy would that be?

Rojo
12-08-2008, 06:15 PM
You can presume that selling the Cubs is part of that plan and this time they'll have to go about it seriously and not *****-footing around like they have been for the last year.
I'd say forget about the $625 mm they were talking about.

In any case, I'm guessing the Cubs will have to be operating on a budget that is cash flow positive, because their holding company will not be able to "bail them out" in case of a shortfall.

That's what I'm thinking. Do you take on more expenses in the next two weeks if you know the clubs going to be sold pronto? In this environment?

Outshined_One
12-08-2008, 06:22 PM
What trophy would that be?

1907 and 1908 World Series!

REDREAD
12-09-2008, 11:15 AM
I'm hoping the new Cubs' owner brings John Allen out of retirement to run the franchise.

RedsBaron
12-09-2008, 01:44 PM
I'm hoping the new Cubs' owner brings John Allen out of retirement to run the franchise.

.....and I hope Allen then hires Bob Boone as manager. ;)

TRF
12-09-2008, 02:49 PM
.....and I hope Allen then hires Bob Boone as manager. ;)

I'd rather he hired Dusty Baker.

MikeS21
12-09-2008, 07:12 PM
I wonder how this story is affected by the political upheaval in Illinois right now? Supposedly, the governor has had an on-going feud with The Chicago Tribune, and he spread some rumors about the Tribune that aren't true.

I was half listening and really only caught the tail end of the report, but I thought one of the allegations charged that the governor had claimed that the Tribune was going to sell its baseball interests in order to stay afloat, and that wasn't true.

Having said that, it would be nice if the Cubs had to cut payroll for a couple years.

BCubb2003
12-09-2008, 07:18 PM
I wonder how this story is affected by the political upheaval in Illinois right now? Supposedly, the governor has had an on-going feud with The Chicago Tribune, and he spread some rumors about the Tribune that aren't true.

I was half listening and really only caught the tail end of the report, but I thought one of the allegations charged that the governor had claimed that the Tribune was going to sell its baseball interests in order to stay afloat, and that wasn't true.

Having said that, it would be nice if the Cubs had to cut payroll for a couple years.

If you read the charges, it turns out that the first lady of Illinois speaks for all Reds fans.

Outshined_One
12-09-2008, 07:31 PM
I wonder how this story is affected by the political upheaval in Illinois right now? Supposedly, the governor has had an on-going feud with The Chicago Tribune, and he spread some rumors about the Tribune that aren't true.

I was half listening and really only caught the tail end of the report, but I thought one of the allegations charged that the governor had claimed that the Tribune was going to sell its baseball interests in order to stay afloat, and that wasn't true.

Having said that, it would be nice if the Cubs had to cut payroll for a couple years.

Blago and his wife reportedly were trying to interfere with the deal because of their animosity towards the Tribune. This might actually help the deal go through, oddly enough.

MikeS21
12-09-2008, 08:28 PM
Blago and his wife reportedly were trying to interfere with the deal because of their animosity towards the Tribune. This might actually help the deal go through, oddly enough.
Thanks for the info. As I mentioned, I had Fox News Channel on in the background, but I was busy with something else. I heard "Wrigley Field" mentioned and glanced up long enough to hear about the feud between the governor and the Tribune. I feel for y'all in Illinois.

BCubb2003
12-09-2008, 08:46 PM
The Tribune was trying to sell Wrigley Field to the state. The governor was demanding that the Tribune fire the editorial writers who had been writing against him. In the background on the tapes, the governor's wife could be heard saying, "(Bleep) the Cubs!"