This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Will Someone, Anyone, Buy the Chicago Cubs?

First, on the Zell side: taxes. When the Tribune bought the Cubs 28 years ago, it paid around $20.5 million. To sell the team for nearly $1 billion today would then mean a massive capital gains tax. Zell is therefore trying to structure a deal by which he would maintain some slim ownership in the club, effectively holding back on his cash windfall so as to avoid the revenuers.

The idea would be to ratchet down that ownership piece over time until none remained. At issue in striking a deal, therefore, is not only the percentage, but also the duration.

On the Ricketts side, the alleged hold up has been: Media. The Tribune has long owned WGN, the superstation, which holds broadcasting rights for a bulk of the Cubs' games. (The Tribune had come to see the Cubs not as a team with title ambitions but, instead, a source for reliably high-rated WGN programming, which would bring the ad dollars.)

At this point at least, the Tribune is not selling WGN, and a new broadcasting agreement -- at arms' length, as they say, between the channel and a separate Ricketts' owned club -- needs working out. The rights fees and to what degree those fees escalate over time is at present a big source of contention between Zell/Tribune and Ricketts.

So tense did discussions become that the Zell people, several months ago, brought the "runner-up" bidding group back into the picture. The group is led by Marc Utay and Leo Hindrey, two old deal veterans.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ABI $22.98 1.01%
BRCM $44.12 0.00%
CBS $61.87 0.00%
DIS $106.12 0.00%
NWS $16.04 0.00%

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs