http://www.chicagotribune.com/business/ ... 6979.story


Cubs may file bankruptcy
By Bruce Japsen | Tribune reporter
9:36 AM CDT, July 13, 2009
The Chicago Cubs may consider a bankruptcy filing as part of closing the sale of the team, according to sources close to the major league ball club.

The National League ballclub would be the first team in nearly four decades to do so. The move, first reported by Bloomberg News, comes as Cubs parent Tribune Co. works to sell the team.

The prepackaged bankruptcy under discussions by Cubs officials would be designed to clear the team of liabilities and make its sale easier, sources close to the team said. Any prepackaged filing by the Cubs could allow the team to re-emerge from bankruptcy in a very short time from weeks to a day or so, these sources said.

This month, Tribune Co. made progess on a deal to sell the Chicago Cubs, Wrigley Field and other assets to the family of TD Ameritrade founder Joe Ricketts for about $900 million. The company continues to discuss a deal for the same assets with a group led by New York investor and former Chicagoan Marc Utay.



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2009 Chicago Cubs results, schedule The status of each potential purchaser and their ability to buy the team should not be affected by the filing, sources said.

Tribune Co. is in the midst of a reorganization under a Chapter 11 bankruptcy filing as the media concern struggles under a heavy debt load, poor economy and loss in revenue at its newspapers and television stations.

Reached this morning Tribune Co. spokesman Gary Weitman "declined comment on the specifics of any potential transaction

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favrefan said:"Chris Coghlan isn't gonna pay your rent, Jimmy."

I didn't know you could file for bankruptcy for lack of runs.

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But the Cubs are profitable.
How can this business entity file bankruptcy when they're profitable?
Also... a bankruptcy nullifies existing labor contracts doesn't it? Does a bankruptcy mean that there's no players under contract?

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"Play until it hurts, then play until it hurts to not play."
http://soundcloud.com/darkside124 HOF 2013, MM Champion 2014

You don't have to be insolvent to file bankruptcy.

They are probably just doing it so there are no complications arising from Tribune's bankruptcy filing for the sale.

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You know me like that.

Direct hit on the contracts according to a Bankruptcy Lawyer WSCR had on.

WGN, Rooftops, all players in organization??????

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WOO LIFE!!!!

No.

Player contracts exempt

A filing by the Cubs would not let the team shirk its player contracts. Major League Baseball guarantees payment on player deals, and a Cubs bankruptcy probably would exempt the contracts anyway.

I don't think they could realistic intend to alter or discharge the player's contracts if they really plan to emerge in 20 days like the article said.

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You know me like that.

Is Ricketts just trying to get out from under the 10 year WGN tv and radio deals?

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It reads like they just want to protect the future owners from claims of the Tribune's creditors related to their bankruptcy, as the Cubs are an asset of the Tribune that was outside of the original Tribune bankruptcy, and nothing more.

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You know me like that.

Ah that makes sense.

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