06-19-2009, 06:26 AM
<!--quoteo(post=45139:date=Jun 19 2009, 12:40 AM:name=rok)-->QUOTE (rok @ Jun 19 2009, 12:40 AM) <{POST_SNAPBACK}><!--quotec-->Seems to me that Zell is just trying to up the ante and put pressure on the Ricketts to cave in and accept his terms. I don't think this stunt will work, because either A) Utay will fail to get enough cash and financing to close the deal, or B ) the banks/debt owners will force Zell out of the Trib altogether before any deal closes. B is looking more and more likely, and A is one of the reasons why Utay lost the bid in the first place, because he didn't have enough up-front cash that Zell wanted.<!--QuoteEnd--><!--QuoteEEnd-->
My understanding of the issue is that Ricketts agreed to a $900 MM price tag and now only wants to pay $840 - $860 MM.
Not surprisingly, they say the issue goes back to the value of the Cubs TV rights which have historically been grossly undervalued due to the WGN and Comcost deals. If the TV rights are valued more like a normal team or what the Yankees get with the YES network the value is much greater.
The credit markets are also an issue but it looks like Ricketts not Zell is the party more at fault.
Gotta love the situation, the Padres were able to sell off a majority portion of the team within a month.
As the Cubs are considering reopening the bidding process, it looks like this deal may not be done for over 3 years. Anyone else notice that the Tribune is still going to hold onto a portion of the team (believe it is something like 10%)
My understanding of the issue is that Ricketts agreed to a $900 MM price tag and now only wants to pay $840 - $860 MM.
Not surprisingly, they say the issue goes back to the value of the Cubs TV rights which have historically been grossly undervalued due to the WGN and Comcost deals. If the TV rights are valued more like a normal team or what the Yankees get with the YES network the value is much greater.
The credit markets are also an issue but it looks like Ricketts not Zell is the party more at fault.
Gotta love the situation, the Padres were able to sell off a majority portion of the team within a month.
As the Cubs are considering reopening the bidding process, it looks like this deal may not be done for over 3 years. Anyone else notice that the Tribune is still going to hold onto a portion of the team (believe it is something like 10%)