What do you guys think? I got five bucks in my wallet.

http://www.chicagotribune.com/business/breaking/chi-chicago-cubs-consider-sale-of-minority-stakes-20140403,0,293783.story


Cubs considering sale of minority stakes

With the Chicago Cubs set to play ball in 100-year-old Wrigley Field Friday or the first time this year, team ownership is considering the sale of a minority stake in the club to help pay for planned renovations to the ball park, sources said.

The Ricketts family, which bought the team and stadium in 2009, is weighing whether to sell minority shares to help fund $300 million in fix-ups to the park plus a $200 million neighborhood redevelopment.

The renovations haven’t begun because the family remains embroiled in a dispute with rooftop club owners, who object to plans for the park that include a giant video screen and other advertising signage. Rooftop owners, who pay 17 percent of their gross revenue to the Cubs, maintain their contract to sell game tickets prohibits such obstructions.

“The Ricketts family is looking at a number of financial options to be prepared to finance expanding and preserving Wrigley Field when the talks with the rooftops come to a conclusion,” said Dennis Culloton, the Ricketts family spokesman.

The Ricketts family — Tom, Laura, Peter and Todd — bought the team and ballpark in a deal valued at $845 million and also included a 25 percent stake in Comcast SportsNet Chicago. The family holds 95 percent of the franchise through a trust. Tribune Co., the previous owner, retained 5 percent. Tom Ricketts is the team chairman.

The news of the potential sale was reported first by CSNChicago.com.

A source close to the team described the potential sale as being one option open to the Ricketts family. “This is not a question of not having resources,” the source said. “This is just an option to use another tool to make those resources available.”

Any sale of stock in the Cubs would not come with voting rights, the source said, meaning the Ricketts family would retain full control.

Sports team ownership often includes multiple investors, with one owner frequently maintaining control of the franchise. For example, Jerry Reinsdorf is the controlling shareholder in the Chicago White Sox, though he has dozens of investors as partners in a limited partnership, according a Tribune report in 2013. Those partners have no control over or say in the team.

If the Rickettts family decides to woo outside investors, it appears they have a good story to tell. Despite poor play in a crumbling stadium, the team is valued at $1.2 billion by Forbes magazine.

It wasn’t clear how big a stake in the Cubs the family might be willing to part with, but the timing of a decision appeared to be connected to the dispute with rooftop owners. The Rickettses hoped to have it resolved by Opening Day and not miss any of the year’s construction season. But that hasn’t happened.

It does appear the rooftop situation needs to be resolved before the family makes a decision wether to sell shares.

This wouldn’t be the first time the Ricketts family considered bringing in partners. When family was negotiating to buy the team and ballpark from Tribune Co. in 2009, Tom Ricketts had separate conversations with a handful of celebrities, including Bill Murray, about investing in the Cubs, the Tribune reported at the time. The talks focused on bringing in a number of investors willing to spend as much as $25 million to become connected to the Cubs.

The idea was shelved as the family focused on concluding the transaction with Tribune Co. but resurfaced in 2013 when the Ricketts family committed to financing the Wrigley Field renovations without assistance from government entities.

_________________

IDK about this plan as the post is too long but why not do like the Packers do?

_________________
Elections have consequences.

I'd give a few hundred thousand.

_________________
Hawaii (fuck) You

So it issues of not having enough cash on hand.

_________________
Be well

GO BEARS!!!

I'm not a financial guru, but I remember hearing how the Ricketts took on major debt and have to wonder if there isn't more behind this story. This is from Kaplan last year:

http://www.csnchicago.com/blog/kapman/ricketts-forced-tribune-take-huge-debt-cubs-purchase

"Major League Baseball has long had strict rules on debt ratio and the complex Cubs sale required the approval of Selig before baseball ownership voted on the sale to the Ricketts family. A recent inquiry to Selig by the Chicago Sun-Times into the Cubs' debt service elicited this response from Selig's spokesman: “The Ricketts family worked closely with our office to develop certain financial structures designed to [ensure] the stability of the franchise at these debt levels. The structures have worked, the club is healthy and the Cubs have been very up front and clear with us since Day 1.”

Forbes magazine has listed the Cubs' debt at $580 million and multiple sources have confirmed that to be accurate. It also appears that the large debt service payments that the Cubs are responsible for have maxed out the money available for the rebuilding process that Epstein and Hoyer are in. Epstein himself admitted to me on Opening Day that the Cubs are maxed out on payroll, preventing them from making major free-agent signings that could accelerate their ability to at least be more competitive at the major-league level. It also appears that once a renovation deal is finally signed, as well as a new TV deal for the games that currently air on WGN TV is completed, more money will be available for Epstein and Hoyer to add to the major league payroll."

_________________

So the Cubs are poor?

_________________
Be well

GO BEARS!!!

Not poor, but just wondering how tight the Cubs have to be on finances and for how long.

_________________

That's a lot of debt. You would have a hard time buying a house with debt ratios like that.

_________________
Be well

GO BEARS!!!

The Cubs are Bears poor.

The allotted X $ from the family fortune for the team. Tommy has a company INCAPITAL and they do fairly well, so between that and the Ameritrade stock there is another source of money, but we all know you cant spend your last $500 mill on a baseball team.

IMO the outsider money is an easy route to go, even if they dont have any voting rights, but let me guarantee you, they will be a pain in the ass.

Highly doubt Jerry R blowing a call into Ricketts to tell him not to do it, but I have heard him say taking on the investors to buy the Bulls was his biggest mistake and it wasnt about the $$$, it was just the constant requests and favors.

_________________
"That's what the internet is for. Slandering others anonymously." Banky
“Been that way since one monkey looked at the sun and told the other monkey ‘He said for you to give me your fuckin’ share.’”

Rickets can't negotiate with a loud mouth gal who inherited a bar from her dad across the street.

How in the ever loving hell is he gonna be able to convince a couple of 3% shareholders that they need a new manager??

_________________

I told you guys the day Ricketts bought the team that he was in over his head financially. They borrowed a ton of money to buy the team & they are up to their ass in debt. Now he is considering selling a minority stake in the Cubs to finance the Wrigley Field renovation? Great. We are stuck with a small time owner in a big time city. Not much has gone well for little fan Boy Tommy since buying the Cubs.

_________________
CSFMB 2014 Nascar Pick 'em Champion

We don’t have a trillion-dollar debt because we haven’t taxed enough; we have a trillion-dollar debt because we spend too much. — Ronald Reagan

You are usually correct, so why would we question you?

_________________
"That's what the internet is for. Slandering others anonymously." Banky
“Been that way since one monkey looked at the sun and told the other monkey ‘He said for you to give me your fuckin’ share.’”

_________________

I'm telling you the rooftop owners excuse is just a front for the real excuse about why they are not building. No judge is going to make them tear it down. The worst imposition that would happen is monetary damages, which they should be able to cover with the revenue

_________________
O judgment! Thou art fled to brutish beasts,
And men have lost their reason.

Why do you care so much about the Cubs? Oh yeah, I forgot, you switched teams. (!Virtual Knuckle Punch!)

_________________
"That's what the internet is for. Slandering others anonymously." Banky
“Been that way since one monkey looked at the sun and told the other monkey ‘He said for you to give me your fuckin’ share.’”

So Gordon Wittenmyer was right and Theo's mouthpiece was wrong again. That's great.

Just ran to CVS saw Ricketts tap dancing for donations on Jackson

Hmmm saw Laura doing the same thing outside of Big Chick's this morning.

_________________
Proud member of the white guy grievance committee

It aint the six minutes. Its what happens in those six minutes.

Keep it.

_________________

when you borrow a lot of money you have to abide by obligations of the loan. ie you have to generate a certain amount of cash and maintain a certain amount of leverage. if you don't, the lender(s) usually get very unhappy and demand certain things, ie put more cash in the deal.

_________________
Reality is your friend, not your enemy. -- Seacrest

Aren't they just about to be able to negotiate what will more than likely be a billion dollar TV deal? Pretty sure the Ricketts are ok on cash these days.

_________________
Proud member of the white guy grievance committee

It aint the six minutes. Its what happens in those six minutes.

try getting a loan on potential future income.

_________________
Reality is your friend, not your enemy. -- Seacrest

Yeah Im sure banks will slam the door in Tommy's face should he come around looking.

_________________
Proud member of the white guy grievance committee

It aint the six minutes. Its what happens in those six minutes.

OK. believe what you want. when you already borrowed as much as they would give you, they don't give you any more.

_________________
Reality is your friend, not your enemy. -- Seacrest

Oh they will give him more money, but just at a higher rate of interest and with similar stipulations to what the Ricketts have to follow for paying down the debt on the purchase of the team. I'm not sure anyone is arguing the case that the Ricketts are poor. I'm just curious how long before they have the free-flowing cash needed to spend the money required to sign big name free agents when "the plan" fails.

_________________

It is really too bad that Jerry R. & his fellow over-the-hill owners wouldn't allow Cuban into their club.

Also, seeing my guy Ryno Managing the Phillie's pisses me off. But hey, Quade was the guy & now we have Ricky.

_________________
CSFMB 2014 Nascar Pick 'em Champion

We don’t have a trillion-dollar debt because we haven’t taxed enough; we have a trillion-dollar debt because we spend too much. — Ronald Reagan

The Rangers were the first to hit paydirt in August 2010. Their deal with Fox Sports Southwest, which includes equity in the network, escalator clauses and profit participation, is for 20 years and valued at $3 billion, according to four MLB and TV executives familiar with the contract, but not authorized to publicly discuss the details. In December, the Angels struck a similar pact with Fox Sports West, a 20-year commitment valued at slightly more than the Rangers' deal, according to three of the executives.

Yeah Im pretty sure Tom could walk into any bank and borrow as much as he'd like . The fucking Rangers are getting 3 billion over 20 years. Cubs will get 5 over the same time frame no doubt. Banks will lend him money on projected future earnings in a hot minute Hatch.

_________________
Proud member of the white guy grievance committee

It aint the six minutes. Its what happens in those six minutes.

they could get more money under an entirely different loan structure, you are right. that could be veeerrry onerous though. Ricketts likely wouldn't like getting every decision OK'd by the lenders first.

_________________
Reality is your friend, not your enemy. -- Seacrest

How in the hell exactly would the Cubs benefit with him managing the current club of crap - and also eschewing all the metrics Theo (et al) work with, by the way - when he hasn't shown that he can take a more 'proper' team over the .500 mark? I'm sure Castro would have his head on straght for example ... I mean, look at the bang-up job he's doing with his own shortstop ...

(Sandberg @ the helm 2013: 20-22, including going 1-2 against the vaunted Cubs)

_________________
Power is always in the hands of the masses of men. What oppresses the masses is their own ignorance, their own short-sighted selfishness.
- Henry George