04-09-2010, 11:23 AM
<!--quoteo(post=87389:date=Apr 9 2010, 10:21 AM:name=1060Ivy)-->QUOTE (1060Ivy @ Apr 9 2010, 10:21 AM) <{POST_SNAPBACK}><!--quotec--><!--quoteo(post=87379:date=Apr 9 2010, 10:02 AM:name=rok)--><div class='quotetop'>QUOTE (rok @ Apr 9 2010, 10:02 AM) <{POST_SNAPBACK}><!--quotec--><!--quoteo(post=87373:date=Apr 9 2010, 09:57 AM:name=1060Ivy)--><div class='quotetop'>QUOTE (1060Ivy @ Apr 9 2010, 09:57 AM) <{POST_SNAPBACK}><!--quotec-->A couple of items:
- The Cubs were just sold to Ricketts for $845 MM last year. Forbes should have at least included an asterisk to say that the market value is another $119 MM. In addition that would change the Debt/Value ratio to 69% rather than 80%
- Why assume that debt cannot be paid down from Operating Income? Ricketts will find new revenue streams but I don't believe that he has to create these streams in order to service the debt.<!--QuoteEnd--><!--QuoteEEnd-->
The purchase price was agreed upon almost 2 years ago. I have a hunch that the overall value has gone down during that time, with the recession and all. If the Rickettses tried to sell the team right now, they couldn't get over $800 mil for it IMO.
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The purchase price may have been agreed to years ago but the market price occurs at the time of ownership transfer. Have a hard time believing that there was a 16% decrease in value in a matter of months.
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Tell that to someone who bought a home 2 years ago or a any stock and then get back to me. Sorry, but you are wrong. The time lag is critical.
And let me add that it isn't that the franchise has lost value, just that the Rickettses overpaid.
- The Cubs were just sold to Ricketts for $845 MM last year. Forbes should have at least included an asterisk to say that the market value is another $119 MM. In addition that would change the Debt/Value ratio to 69% rather than 80%
- Why assume that debt cannot be paid down from Operating Income? Ricketts will find new revenue streams but I don't believe that he has to create these streams in order to service the debt.<!--QuoteEnd--><!--QuoteEEnd-->
The purchase price was agreed upon almost 2 years ago. I have a hunch that the overall value has gone down during that time, with the recession and all. If the Rickettses tried to sell the team right now, they couldn't get over $800 mil for it IMO.
<!--QuoteEnd--></div><!--QuoteEEnd-->
The purchase price may have been agreed to years ago but the market price occurs at the time of ownership transfer. Have a hard time believing that there was a 16% decrease in value in a matter of months.
<!--QuoteEnd--></div><!--QuoteEEnd-->
Tell that to someone who bought a home 2 years ago or a any stock and then get back to me. Sorry, but you are wrong. The time lag is critical.
And let me add that it isn't that the franchise has lost value, just that the Rickettses overpaid.