Cubs sale: Ricketts still in lead

According to reports we are in the final days before a decision in the two year sales process of the Chicago Cubs is made. A decision may have already been made, but the bankruptcy proceedings have held this up a bit.

The naming of a lead bidder for the auction of the Chicago Cubs baseball team will likely be delayed until the middle of next week as the bankruptcy of Tribune, team owner and publisher of the Los Angeles Times, has made the process more difficult, according to people briefed on the discussions.

Since filing for bankruptcy in December, Tribune’s creditors are now seeking a bigger cash component in the deal. Sam Zell, Tribune owner, who had hoped to retain a nearly 50 per cent stake in the team to minimise tax liabilities, is now seeking a much smaller single-digit percentage stake.

“They want cash,” one source said. The bidders will “have a lot more equity than a year ago.”

Three bidders submitted last minute details this week and some had originally expected a decision as early as yesterday. A sale is seen fetching $850m to $900m, the source said.

So, by the middle of next week we should have an idea who the next owner will be (or maybe not). All signs continue to point to Tom Ricketts and his family landing the Cubs. Ricketts has been the favorite for some time now and that has not changed. Barry Rozner had a very interesting article earlier this week in the Daily Herald. Rozner and his sources confirm that Ricketts is still the leader:

…but MLB powers have preferred Ricketts for months, and even a higher bid might not trump that.

And it makes sense.

Ricketts, CEO of Chicago investment bank Incapital, is a local guy who loves the team and will have only its best interests at heart. He even, reportedly, met his wife in the bleachers at Wrigley.

According to Rozner, Ricketts fits the profile MLB wants to own one of their prize franchises:

The Cubs are so valuable on so many levels, however, that MLB wants to make certain the Cubs are guarded by someone who will treat the franchise like it’s family.

They want the next owner to be someone who has a deep understanding of what the Cubs mean to the city and is someone who will keep the team for generations. There’s every indication Ricketts fits that profile.

What should we expect when and if Ricketts is named the winner? Rozner speculates he will want to make a quick splash:

Ricketts will want to win and win fast, so if it’s him and it happens soon his first call might be to GM Jim Hendry with the news that he can up the payroll and get Peavy out of San Diego.

Finally, Rozner acknowledges the fine work Jim Hendry has done the last two seasons with an absentee owner:

Hendry has done his part to meet payroll for current ownership, which has neither an interest in winning nor an interest in owning the team.

For some in the Cubs’ front office, it has been like having no owner at all the last two years, and to win 97 games in an absurd environment with a vacuum at the top is mildly remarkable.

So if Ricketts is the guy, expect the Cubs and Hendry to quickly try and make a move for Peavy. That sounds like a move that will warm the hearts of the fanbase.