It has long been the position of this humble writer that the bankruptcy of the Tribune Company would not have any impact on the sale of the Chicago Cubs – after all, in the bankruptcy, the interests of the debtor and creditors will align: sell the Cubs as soon as possible and for the most possible money.
But in these once-in-a-generation economic times, it’s not the amount the Cubs fetch that means the most to the Tribune’s creditors – it’s how much CASH the company can get in the sale.
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. Financial Times.