Tribune Co. reaches deal to sell Cubs, Wrigley
Photo 
Chicago Cubs fans celebrate as the Cubs defeated the Braves 4-2 in a baseball game Monday, July 6, 2009, at Wrigley Field in Chicago. Tribune Co. has reached a written agreement to sell the Cubs, Wrigley Field and other assets to the family of TD Ameritrade founder Joe Ricketts for about $900 million, a person close to the negotiations said Monday.
CHICAGO — Tribune Co. intends to sell the Chicago Cubs to the Ricketts family, sources familiar with the matter said Monday, ending the company’s flirtation with another buyer after negotiations with the Rickettses had stalled two months ago.
After more than five months of negotiations, Tribune Co. has a written agreement to sell the baseball team and other assets to the Ricketts family for about $900 million. The two sides reached a deal over the weekend and forwarded an outline of their transaction—what is known as a term sheet—to Major League Baseball for its initial comments, according to sources who declined to be identified because an agreement has not been announced.
The two sides still have details to work out that will be included in a definitive agreement, sources said. The term sheet sent to MLB includes information on the deal’s capital structure and how the Ricketts family will finance the transaction, sources said.
A Tribune spokesman said, “We continue an active dialogue with the Ricketts family with an eye toward reaching a definitive agreement. We don’t intend to comment on the specifics of any potential transaction.”
A spokesman for the Ricketts family did not immediately return a phone call for comment. The family’s pursuit of the Cubs has been led by Tom Ricketts, an investment banker who resides in Wilmette.
The agreement marks a milestone in protracted talks between Tribune Co., parent of the Chicago Tribune, and the Ricketts family. The family emerged in January as the winning bidder in an auction Tribune Co. organized nearly two years ago to sell the Cubs, Wrigley Field and its 25 percent stake in Comcast SportsNet Chicago, a regional cable sports network.
But negotiations to reach an agreement took longer than anticipated. The Ricketts family, which made its fortune through the Omaha-based online brokerage TD Ameritrade Holding Corp., faced hurdles securing debt to finance its offer because of the recession and tight credit markets.
Talks hit another snag in May when the two sides could not agree on how to value the Cubs’ broadcast rights. The disagreement led the family to consider reducing its bid by as much $50 million, sources have said.
Several weeks ago, Tribune Co., unhappy with negotiations, invited a group led by New York investor and former Chicagoan Marc Utay to make a second run at the Cubs. Utay’s group had been one of three finalists in the auction.
Tribune Co.’s negotiating tactics may have been the prod needed for the Rickettses to reach a compromise.
Terms of the deal are sketchy at this time. One of the sources said the price is “slightly less” than the nearly $900 million bid the Rickettses made in January.
The agreement also retains the capital structure that Tribune Co. has desired in its disposition of the Cubs and other assets. In the Cubs deal, sources said, a new partnership would be formed to own the assets Tribune Co. is unloading. Tribune Co. would own about 5 percent; the Rickettses the rest.
Completion of a transaction with the Rickettses is still several weeks away. The agreement, in addition to receiving MLB approval, has to be vetted by Tribune Co.’s creditors.
The company filed for Chapter 11 bankruptcy in December.
Jul 7, 2009 at 10:54 p.m.
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Don't nobody mess with my dad when he's high!!!
Jul 7, 2009 at 4:54 p.m.
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This news couldn't have come at A better time as far as trade moves are concerned, now maybe the Cubs can address some of the needs it will take to have A great second half of the season! I'm looking forward to A 3rd NL central division title and this year the playoffs will be A whole new story with their left handed hitting they so needed in years past!!!! Go Cubs Go~ Go Cubs Go~ Hey Chicago What da ya say~ Cubs are gonna Win Today! I love that song........ I hope the Brewers also keep pace and have A successful second half as it makes the games so much more interesting and fun to go to!!!!! As far as Wrigley VS Miller Park thats like comparing Apples to Bad Cheese I've been to both parks several times and hands down Wrigley is something every baseball fan should get to experience in their lifetime, its just incredible anywhere you sit!!!
Jul 7, 2009 at 4:09 p.m.
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at the same time?? maybe if shes been hangin w clemens or bonds in the last decade;)
Jul 7, 2009 at 4:08 p.m.
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Yeah, but my mom could beat up both your dads.
Jul 7, 2009 at 4:05 p.m.
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good point gfan.
doesnt matter. my dad could soooo beat your dad up
Jul 7, 2009 at 3:26 p.m.
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Wrigley Field is the world's largest beer garden. That's not necessarily a bad thing. But it's true that during the game and after the game fans and other people who remain civilized have to deal with a bunch of obnoxious slobs.
Jul 7, 2009 at 1:30 p.m.
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im not gonna debate the knowledge aspect. theres always fans that know more than other people and less than others. but if you think miller park, with its little league diamond, outdoor playground, indoor playground, sausage race, tailgating, $1.00 uecker seats isnt more family friendly than wrigley field and its sea of BARS then either you have never been to one or both of the stadiums or you are just plain blind. good day. i said good day.
Jul 7, 2009 at 1:15 p.m.
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That might happen in another...say...100 years.
Jul 7, 2009 at 11:09 a.m.
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that was my point. fans go to miller park for some tailgating and a baseball game. 'fans' go to wrigley as if it were chi-towns largest singles bar.
Jul 7, 2009 at 10 a.m.
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that's because a Cubs game at Wrigley Field is an entirely different experiance than a Brewers game at Miller Park.
Jul 7, 2009 at 9:42 a.m.
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i dont see a lot of peeps at a sold out wrigley who actually go for the baseball game either
Jul 7, 2009 at 9:35 a.m.
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Yeah, but business wise not a bad decision. I don't see Miller Park sold out constantly when the Brewers are not playing well.
Jul 7, 2009 at 8:13 a.m.
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Laughable losers!
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