Cubs Sale Bogged Down by Conflict
May 31, 2009 by Mark Ellis
Filed under Business
Although Tribune Co., has been trying to sell the Chicago Cubs to Tom Ricketts, an investment banker based in Wilmette, Ill., the process has slowed down due to doubt over the value of the Cubs’ broadcasting contracts.
Tribune Co. owns and controls WGN-TV, WGN Radio, and Comcast SportsNet Chicago, three popular Chicago media outlets that each broadcast Cubs games. Reportedly, these three media outlets generate a significant amount of ticket sales for Wrigley Field, which means that the addition of their contracts in the sale should increase the price of the Cubs team.
Image: Flickr
However, Ricketts and his family were quoted in the Chicago Tribune, which is also owned by Tribune Co., as questioning the value of the broadcasting contracts. The team was purchased by Tribune Co. in 1981 for $20.5 million but their asking price has inflated to $900 million. It has not been reported how much of the $900 million the broadcasting contracts are supposed to cover.
