01-13-2009, 02:54 AM
Bidding For Cubs Extends Past Deadline(Tribune)
<!--quoteo-->QUOTE <!--quotec-->The never-ending auction hasn't ended.
Tribune Co., owner of the Chicago Cubs as well as the Chicago Tribune, was pushing prospective buyers to submit their final bids for the team, Wrigley Field and related assets by the end of last week. But the media company was flexible with the deadline, said people familiar with the discussions.
As one source said Monday, "In an auction you are always given the opportunity to improve your bid one last time."
Yet the finish line remains near. The last-minute jockeying likely will delay the selection of a winning bid by a few days, sources said.
It's in Tribune Co.'s best interests to keep the bidding alive to squeeze the last possible dollar from the Cubs. The company also has other constituents to satisfy: its creditors and a bankruptcy judge. Tribune Co., controlled by Chicago real estate investor Sam Zell, filed for bankruptcy reorganization Dec. 8.
While Tribune Co. did not include the Cubs in its bankruptcy petition, that doesn't mean the legal proceedings will not influence the sale. Creditors and the judge want to make sure there has been a fair sales process that maximizes the proceeds for the bankrupt estate, said Douglas Baird, a corporate restructuring specialist at the University of Chicago Law School.
The last thing Tribune Co. wants is for a prominent creditor to object to the sales process and attempt to reopen the Cubs auction in bankruptcy court, sources said. The company declined to comment.
The bankruptcy filing also has complicated the sale for some bidders. Before the bankruptcy filing, Tribune Co. was focused on selling the team in a tax-efficient manner because the company faces a heavy capital-gains levy from the transaction. Tribune Co. bought the team and stadium for $20.5 million in 1981; the Cubs now could fetch more than $800 million, sources have said.
With tax savings in mind, Tribune Co. considered taking some non-cash considerations from a buyer that would pay out over time. In bankruptcy, the company is more conscious of getting as much cash upfront as possible, sources said.<!--QuoteEnd--><!--QuoteEEnd-->
Kap said today on Trib Live that we might know who the owner is within 48 hours.
<!--quoteo-->QUOTE <!--quotec-->The never-ending auction hasn't ended.
Tribune Co., owner of the Chicago Cubs as well as the Chicago Tribune, was pushing prospective buyers to submit their final bids for the team, Wrigley Field and related assets by the end of last week. But the media company was flexible with the deadline, said people familiar with the discussions.
As one source said Monday, "In an auction you are always given the opportunity to improve your bid one last time."
Yet the finish line remains near. The last-minute jockeying likely will delay the selection of a winning bid by a few days, sources said.
It's in Tribune Co.'s best interests to keep the bidding alive to squeeze the last possible dollar from the Cubs. The company also has other constituents to satisfy: its creditors and a bankruptcy judge. Tribune Co., controlled by Chicago real estate investor Sam Zell, filed for bankruptcy reorganization Dec. 8.
While Tribune Co. did not include the Cubs in its bankruptcy petition, that doesn't mean the legal proceedings will not influence the sale. Creditors and the judge want to make sure there has been a fair sales process that maximizes the proceeds for the bankrupt estate, said Douglas Baird, a corporate restructuring specialist at the University of Chicago Law School.
The last thing Tribune Co. wants is for a prominent creditor to object to the sales process and attempt to reopen the Cubs auction in bankruptcy court, sources said. The company declined to comment.
The bankruptcy filing also has complicated the sale for some bidders. Before the bankruptcy filing, Tribune Co. was focused on selling the team in a tax-efficient manner because the company faces a heavy capital-gains levy from the transaction. Tribune Co. bought the team and stadium for $20.5 million in 1981; the Cubs now could fetch more than $800 million, sources have said.
With tax savings in mind, Tribune Co. considered taking some non-cash considerations from a buyer that would pay out over time. In bankruptcy, the company is more conscious of getting as much cash upfront as possible, sources said.<!--QuoteEnd--><!--QuoteEEnd-->
Kap said today on Trib Live that we might know who the owner is within 48 hours.
@TheBlogfines