Economic realities hit Cubs
November 24, 2008 5 Comments
As everyone knows the ongoing economic times couldn’t have come at a worse time for Sam Zell in his efforts to unload the Cubs. According to this article the economic realities have made the Cubs rethink their plans to raise ticket prices again. This from Crane Kenney in Friday’s Tribune:
“We’ll certainly want to keep a good number of our seats flat in ticket prices,” Kenney said. “We’ll look throughout the inventory to see whether there is the ability to increase the price in certain areas, but this is a tough economy for our consumers, as well as our sponsors and our fans. We recognize that. We don’t want them to view our ticket prices as a burden.”
Of course this is not good for Mr. Zell, who last summer had an offer of $1.2-$1.3 billion on the table from Mark Cuban. (That offer is gone, and so is Cuban in the bidding process.)
What might be good news for fans might not be in the best interests of Tribune Co.; lower revenue from ticket sales could reduce the value of the franchise.
Kenney is in a difficult position. If the Cubs raise prices too much, he could turn off fans. If he doesn’t raise them enough, he could upset his boss, Sam Zell, the Chicago real estate investor who struck a deal in April 2007 to take Tribune private in an $8.2 billion leveraged transaction.
As should be expected, the lost revenue will impact the club on the field. Reports now have Rafael Furcan close to signing with A’s (4 yrs, $48 million). As much as the idea seems like a downer, the Cubs seem to be very interested in trading for KC OF Mark Teahen to play RF. A major lowering of the expectations to add a Bobby Abreau or Milton Bradley to play RF. It looks like the Cubs major FA signing will be Ryan Dempster and after that they are just gonna tweak this team and make some trades. Not what was expected earlier, maybe not what Kenney and Hendry planned. But these are tough economic times.
Billy Beane seems to be doing an about face and is taking a risk with Furcal…If Furcal is healthy though and with Holliday, could the A’s make a run at the AL West? Apparently Billy thinks so. The Cubs offense would be cured with a healthy Furcal and Holliday imo but I guess that’s the difference in the judgements of the GM’s here.
I think you are right that Hendry and company may be mostly spent out with the 52mm acquisition of Dempster (Who immediately and I presume inadvertantly slammed his boss Pinella saying they weren’t prepared)…From what I have read they have been told to wait until Dec 1 before they do anything.
ironic that Billy is a buyer. he must be counting on generating some revenue in their new ballpark. (when does that open?)
I don’t think many thought there would be a free agent signing by the Cubs of much consequence this offseason after Hendry and Lou’s comments when the season ended. They each said the way they’d go is probably trades. I’d be perfectly fine with Teahen in RF. He’s probably worth 25 runs (offense and defense) away from Kaufmann and the AL. He’s dirt cheap, but I think the Cubs are looking at him as a utility player (back up 1st, 3rd, LF, and RF). I’m guessing the Cubs acquiring him depends on whether or not the Cubs get a good enough offer for DeRosa and whether or not they can add a shortstop moving Theriot to 2nd (probably a platoon with Fontenot) or acquiring someone like Brian Roberts.
They don’t have a lot of money left to spend, but they still have some.
And all of that could change once a new owner is in place at the end of the year. He could cut payroll. He could raise it. Who knows?
more on the new owner in just a second md…
stay tuned