The sale of the Chicago Cubs has been a story that has went on much longer than most realize. Rumors that the old Tribune Company would deal the Cubs started in the Fall of 2005. By 2006 it became very clear that the Tribune wasn’t gonna continue to operate the way it had for years. The only question for Cubs fans was where would the Cubs end up when all of this was said and done.
- I started following the developments back at the old site 1060west, my first post was in response to Crain’s Chicago Business article in October of 2005 that the Cubs might be on the block.
- In the spring gm outlined why selling the club made sense for the struggling TribCo.
- By the following summer gm was following the battle in the Trib’s boardrooms between the Chandlers and Denis FitzSimons.
- Following a failed tribune auction to generate cash it became apparent in January of 2007 that the Cubs would not be under the Trib umbrella for long.
- By opening day 2007 it was official Sam Zell had taken over TribCo and the Cubs were on the block.
Good friend gaius marius covered much of what went down in the Trib boardroom for 1060w during that time. He has been a consistent commenter on the sales process over here in the short time we’ve been around. I e-mailed gm and asked him for his thoughts on the agreement today. Here is what he said:
Its a big positive step – the last potential deal killer is the placement of remaining financing notes. I would not expect that to be easy, but it will likely get done at some price. Even if it doesn’t Ricketts could raise more cash to cover the difference – which would be preferable, as it would minimize the club’s considerable debt service obligation going forward.
Surprises may remain, but I think the biggest unknown was whether Ricketts was committed to making it happen. He could have killed this thing in the last few weeks, and had reason to. I would have. It appears he didn’t, though, and so I think its “Welcome to the majors, Mr. Ricketts.”
gm’s opinion is always well respected on this page. I thank him for taking time to answer this question.
my (ccd’s) opinion — Bottomline on all of this is this is a good day for the cubs as a franchise. They will get away from a corporation that has larger concerns than who should be playing 2b everyday at Clark and Addison. As things continue to deteriorate, mother tribune is going to sell off most of their properties over the next several years. The Cubs should be happy to get out early before things get uglier inside the tower.
As far as Ricketts as an owner goes, there will be changes. Anytime a business changes hands there will be changes. Because of the debt and the cost of the franchise some of these changes will be unpopular with the fanbase (myslef included). Ricketts is buying the club when the fans expectations have never been higher. Fans want to win now and if they don’t at some point Ricketts will go from being the popular new guy to being as unpopular as Chicago sports franchise owners before him.
The task at hand for Ricketts is not going to be particularly easy. Away from the field, the Cubs have several issues first and foremost is the future of Wrigley Field. Next the future of their radio and television broadcasts. Finally this team will have to find as many possible ways to maximize revenues associated with the Cubs brand and Wrigley Field.
I wish Tom Ricketts and his family the best of luck. The most important thing, and what will make Ricketts a beloved hero in this town will be winning the whole enchilada.
