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<!--quoteo(post=30678:date=Apr 16 2009, 08:06 AM:name=Butcher)-->QUOTE (Butcher @ Apr 16 2009, 08:06 AM) <{POST_SNAPBACK}><!--quotec--><!--quoteo--><div class='quotetop'>QUOTE <!--quotec-->Your life was a mistake, troll...<!--QuoteEnd--><!--QuoteEEnd-->
I can't help but take more than a little pleasure in this whole thing.
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The thing is, Zell only has his ass on the line for a tiny percentage of the money. I think he put $315 M into the entire $14 <b>Bil</b> Tribune buy.
I suppose it doesn't help Zell's popularity with Butch that he's been good pals with Reinsdorf since the 70's.
There's nothing better than to realize that the good things about youth don't end with youth itself. It's a matter of realizing that life can be renewed every day you get out of bed without baggage. It's tough to get there, but it's better than the dark thoughts. -Lance
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Ricketts offers to share Cubs
<!--quoteo-->QUOTE <!--quotec-->Tom Ricketts is offering private investors a stake in the Chicago Cubs as he works to finance a $900-million acquisition of the team by his family.
Crain's has learned that Mr. Ricketts — scion of the TD Ameritrade Inc. fortune — is trying to raise $100 million or more through the sale of preferred stock to wealthy individuals. Money raised from investors would reduce the amount the Ricketts family would have to borrow from banks to finance the Cubs deal.
The preferred shares would represent an ownership interest in the team but confer no voting privileges or other rights of control. Investors would be entitled to a 6.5% dividend on their shares, according to people familiar with the terms.
They also would get front-row seats at Wrigley Field, opportunities to hobnob with players and a place on an "advisory board" that would meet regularly to discuss the team's future. After 15 years, they'd get their original investment back without sharing in any appreciation in the value of the franchise over that period.
People close to the Ricketts group say Mr. Ricketts hopes to find five to 10 investors willing to put up $25 million apiece. Advisers are preparing an offering document outlining the investment terms. Mr. Ricketts has made only preliminary contacts with prospective investors, none of whom has agreed to invest. Through a spokesman, Mr. Ricketts declines to comment.
Likely prospects include the well-heeled Chicagoans who submitted bids or expressed interest in owning the Cubs when Tribune Co. put the team on the block two years ago after billionaire real estate investor Sam Zell inked a deal to take control of the struggling media company.<!--QuoteEnd--><!--QuoteEEnd-->
I got nothin'.
Andy
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Does it open the door for Cuban?
I got nothin'.
Andy
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<!--quoteo(post=32276:date=Apr 22 2009, 12:32 PM:name=Andy)-->QUOTE (Andy @ Apr 22 2009, 12:32 PM) <{POST_SNAPBACK}><!--quotec--> Ricketts offers to share Cubs
<!--quoteo--><div class='quotetop'>QUOTE <!--quotec-->Tom Ricketts is offering private investors a stake in the Chicago Cubs as he works to finance a $900-million acquisition of the team by his family.
Crain's has learned that Mr. Ricketts — scion of the TD Ameritrade Inc. fortune — is trying to raise $100 million or more through the sale of preferred stock to wealthy individuals. Money raised from investors would reduce the amount the Ricketts family would have to borrow from banks to finance the Cubs deal.
The preferred shares would represent an ownership interest in the team but confer no voting privileges or other rights of control. Investors would be entitled to a 6.5% dividend on their shares, according to people familiar with the terms.
They also would get front-row seats at Wrigley Field, opportunities to hobnob with players and a place on an "advisory board" that would meet regularly to discuss the team's future. After 15 years, they'd get their original investment back without sharing in any appreciation in the value of the franchise over that period.
People close to the Ricketts group say Mr. Ricketts hopes to find five to 10 investors willing to put up $25 million apiece. Advisers are preparing an offering document outlining the investment terms. Mr. Ricketts has made only preliminary contacts with prospective investors, none of whom has agreed to invest. Through a spokesman, Mr. Ricketts declines to comment.
Likely prospects include the well-heeled Chicagoans who submitted bids or expressed interest in owning the Cubs when Tribune Co. put the team on the block two years ago after billionaire real estate investor Sam Zell inked a deal to take control of the struggling media company.<!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteEnd--></div><!--QuoteEEnd-->
So essentially you would get a 6.5 percent return on 25 million dollars for 15 years, then get your 25 mil back? And for that, you get front row seats and are able to hobnob? That doesn't sound like a great investment to me.
I wish that I believed in Fate. I wish I didn't sleep so late. I used to be carried in the arms of cheerleaders.
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Dude, it's the Cubs!! [img]style_emoticons/<#EMO_DIR#>/biggrin.gif[/img]
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<!--quoteo(post=32280:date=Apr 22 2009, 12:52 PM:name=BT)-->QUOTE (BT @ Apr 22 2009, 12:52 PM) <{POST_SNAPBACK}><!--quotec--><!--quoteo(post=32276:date=Apr 22 2009, 12:32 PM:name=Andy)--><div class='quotetop'>QUOTE (Andy @ Apr 22 2009, 12:32 PM) <{POST_SNAPBACK}><!--quotec--> Ricketts offers to share Cubs
<!--quoteo--><div class='quotetop'>QUOTE <!--quotec-->Tom Ricketts is offering private investors a stake in the Chicago Cubs as he works to finance a $900-million acquisition of the team by his family.
Crain's has learned that Mr. Ricketts — scion of the TD Ameritrade Inc. fortune — is trying to raise $100 million or more through the sale of preferred stock to wealthy individuals. Money raised from investors would reduce the amount the Ricketts family would have to borrow from banks to finance the Cubs deal.
The preferred shares would represent an ownership interest in the team but confer no voting privileges or other rights of control. Investors would be entitled to a 6.5% dividend on their shares, according to people familiar with the terms.
They also would get front-row seats at Wrigley Field, opportunities to hobnob with players and a place on an "advisory board" that would meet regularly to discuss the team's future. After 15 years, they'd get their original investment back without sharing in any appreciation in the value of the franchise over that period.
People close to the Ricketts group say Mr. Ricketts hopes to find five to 10 investors willing to put up $25 million apiece. Advisers are preparing an offering document outlining the investment terms. Mr. Ricketts has made only preliminary contacts with prospective investors, none of whom has agreed to invest. Through a spokesman, Mr. Ricketts declines to comment.
Likely prospects include the well-heeled Chicagoans who submitted bids or expressed interest in owning the Cubs when Tribune Co. put the team on the block two years ago after billionaire real estate investor Sam Zell inked a deal to take control of the struggling media company.<!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteEnd--></div><!--QuoteEEnd-->
So essentially you would get a 6.5 percent return on 25 million dollars for 15 years, then get your 25 mil back? And for that, you get front row seats and are able to hobnob? That doesn't sound like a great investment to me.
<!--QuoteEnd--></div><!--QuoteEEnd-->
I agree. He should be tossing in a share of the appreciation of the club's value at the end.
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When no one bites he probably will.
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That's the nature of preferred stock. It isn't really an ownership interest. It's more like lending money and getting a more secure investment. Still though, I would buy shares if they became available at some point, unless they're strictly privately placed. Plus, the board can always vote to convert the preferred to common at some point, and that would rock.
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<!--quoteo(post=32290:date=Apr 22 2009, 01:30 PM:name=rok)-->QUOTE (rok @ Apr 22 2009, 01:30 PM) <{POST_SNAPBACK}><!--quotec-->That's the nature of preferred stock. It isn't really an ownership interest. It's more like lending money and getting a more secure investment. Still though, I would buy shares if they became available at some point, unless they're strictly privately placed. Plus, the board can always vote to convert the preferred to common at some point, and that would rock.<!--QuoteEnd--><!--QuoteEEnd-->
Rok, why <i>wouldn't</i> Ricketts convert it to common some day? It seems like it'd be quite a day on Wall Street if fans like us could buy a piece of the Cubs.
There's nothing better than to realize that the good things about youth don't end with youth itself. It's a matter of realizing that life can be renewed every day you get out of bed without baggage. It's tough to get there, but it's better than the dark thoughts. -Lance
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<!--quoteo(post=32296:date=Apr 22 2009, 01:49 PM:name=KBwsb)-->QUOTE (KBwsb @ Apr 22 2009, 01:49 PM) <{POST_SNAPBACK}><!--quotec--><!--quoteo(post=32290:date=Apr 22 2009, 01:30 PM:name=rok)--><div class='quotetop'>QUOTE (rok @ Apr 22 2009, 01:30 PM) <{POST_SNAPBACK}><!--quotec-->That's the nature of preferred stock. It isn't really an ownership interest. It's more like lending money and getting a more secure investment. Still though, I would buy shares if they became available at some point, unless they're strictly privately placed. Plus, the board can always vote to convert the preferred to common at some point, and that would rock.<!--QuoteEnd--><!--QuoteEEnd-->
Rok, why <i>wouldn't</i> Ricketts convert it to common some day? It seems like it'd be quite a day on Wall Street if fans like us could buy a piece of the Cubs.
<!--QuoteEnd--></div><!--QuoteEEnd-->
That's essentially how the Packers operate.
I got nothin'.
Andy
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<!--quoteo(post=32297:date=Apr 22 2009, 02:03 PM:name=Andy)-->QUOTE (Andy @ Apr 22 2009, 02:03 PM) <{POST_SNAPBACK}><!--quotec--><!--quoteo(post=32296:date=Apr 22 2009, 01:49 PM:name=KBwsb)--><div class='quotetop'>QUOTE (KBwsb @ Apr 22 2009, 01:49 PM) <{POST_SNAPBACK}><!--quotec--><!--quoteo(post=32290:date=Apr 22 2009, 01:30 PM:name=rok)--><div class='quotetop'>QUOTE (rok @ Apr 22 2009, 01:30 PM) <{POST_SNAPBACK}><!--quotec-->That's the nature of preferred stock. It isn't really an ownership interest. It's more like lending money and getting a more secure investment. Still though, I would buy shares if they became available at some point, unless they're strictly privately placed. Plus, the board can always vote to convert the preferred to common at some point, and that would rock.<!--QuoteEnd--><!--QuoteEEnd-->
Rok, why <i>wouldn't</i> Ricketts convert it to common some day? It seems like it'd be quite a day on Wall Street if fans like us could buy a piece of the Cubs.
<!--QuoteEnd--></div><!--QuoteEEnd-->
That's essentially how the Packers operate.
<!--QuoteEnd--></div><!--QuoteEEnd-->
Yeah, I see nothing wrong with that, and Ricketts knows it. Plus, preferred stockholders would love it because they'd be almost guaranteed a bigger return on their investment and an easy way to cash out into the public markets without having to wait until the maturity date a few decades from now.
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One reason for him not to have common shares is to avoid filing the Cubs financial information with the SEC. If he keeps it private he can keep the financials private as well.
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<!--quoteo(post=32280:date=Apr 22 2009, 12:52 PM:name=BT)-->QUOTE (BT @ Apr 22 2009, 12:52 PM) <{POST_SNAPBACK}><!--quotec--><!--quoteo(post=32276:date=Apr 22 2009, 12:32 PM:name=Andy)--><div class='quotetop'>QUOTE (Andy @ Apr 22 2009, 12:32 PM) <{POST_SNAPBACK}><!--quotec--> Ricketts offers to share Cubs
<!--quoteo--><div class='quotetop'>QUOTE <!--quotec-->Tom Ricketts is offering private investors a stake in the Chicago Cubs as he works to finance a $900-million acquisition of the team by his family.
Crain's has learned that Mr. Ricketts — scion of the TD Ameritrade Inc. fortune — is trying to raise $100 million or more through the sale of preferred stock to wealthy individuals. Money raised from investors would reduce the amount the Ricketts family would have to borrow from banks to finance the Cubs deal.
The preferred shares would represent an ownership interest in the team but confer no voting privileges or other rights of control. Investors would be entitled to a 6.5% dividend on their shares, according to people familiar with the terms.
They also would get front-row seats at Wrigley Field, opportunities to hobnob with players and a place on an "advisory board" that would meet regularly to discuss the team's future. After 15 years, they'd get their original investment back without sharing in any appreciation in the value of the franchise over that period.
People close to the Ricketts group say Mr. Ricketts hopes to find five to 10 investors willing to put up $25 million apiece. Advisers are preparing an offering document outlining the investment terms. Mr. Ricketts has made only preliminary contacts with prospective investors, none of whom has agreed to invest. Through a spokesman, Mr. Ricketts declines to comment.
Likely prospects include the well-heeled Chicagoans who submitted bids or expressed interest in owning the Cubs when Tribune Co. put the team on the block two years ago after billionaire real estate investor Sam Zell inked a deal to take control of the struggling media company.<!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteEnd--></div><!--QuoteEEnd-->
So essentially you would get a 6.5 percent return on 25 million dollars for 15 years, then get your 25 mil back? And for that, you get front row seats and are able to hobnob? That doesn't sound like a great investment to me.
<!--QuoteEnd--></div><!--QuoteEEnd-->
How many investments are out there where you could guarantee a 6.5% rate of return and have no risk of your principle?
If you trust Ricketts creditworthyness and that this thing won't fall apart and the franchise not be able to afford to make those payments (in which case I could see it convert to an equity stake) it probably isn't the worst thing in the world for someone with an extra $25mil, and a desire to "own the Cubs" while getting a decent return on their investment to consider.
You could clearly do better, but if you look at my 401K, you can clearly do worse.
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From an ESPN article about the Mets and Yankees ticket prices:
<!--quoteo-->QUOTE <!--quotec-->He also hopes the proposed sale of the Chicago Cubs from Tribune Co. to the Ricketts family can close within two months.
"I know they talked about June now, and I hope we can make that," Selig said.<!--QuoteEnd--><!--QuoteEEnd-->
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