With the Cubs looking for ways to finance the Wrigley Field renovation effort and projects around the stadium, Patrick Mooney of CSNChicago.com reports that ownership is considering selling minority shares of the team.
No final decisions have been made yet, but the Ricketts family will not be selling off controlling interest in the team. It’s akin to what the Mets did a couple of years ago after the settlement in the Bernie Madoff scandal. Just some outside cash now to get the projects off the ground.
An industry source predicted the Cubs would be working from the latest Forbes valuation – $1.2 billion – that put the franchise behind only the New York Yankees, Los Angeles Dodgers and Boston Red Sox at a time when commissioner Bud Selig estimated the sport’s revenues could top $9 billion this year.
That’s a 42-percent jump from the $845 million deal that finally closed in October 2009 and included a piece of Comcast SportsNet Chicago. The game’s rising tide hasn’t lifted the Cubs out of fifth place since the Ricketts family entered into that leveraged partnership with Zell’s Tribune Co., which demanded any buyer take on a debt-heavy structure that would create a shelter from huge capital-gains taxes.
The Cubs source said a sale wouldn’t impact the futures of team presidents Crane Kenney and Theo Epstein, who both have long-term contracts and run business and baseball operations without much interference from a hands-off ownership group.
MLB would have to approve any new owners. The Wrigleyville project is expected to cost around $500 million and will consist of renovations of the stadium itself and outside the stadium, including a hotel. In addition to trying to raise the money to fund it privately, Cubs ownership have run into some other issues along the way, including their contract with rooftop owners which runs through 2023. Plans for a jumbotron will block some of the views into the ballpark.
People have been drinking in Wrigleyville since before 8am this morning. There are throngs of people out on the streets and packing every bar in the vicinity and it’s still four hours until first pitch. I realize I’m an old man who rarely leaves his home, but that looks exhausting even by the standards of normal degenerates. Be safe, everyone!
As for the game, the Indians are doing it: Carlos Santana is playing left field, keeping his bat and he bat of Mike Napoli in the lineup. I mentioned this morning that Santana has played exactly one game in the outfield in his career, and that that came four years ago. Allow me to reiterate that. And to remind everyone that, in baseball, the ball tends to find you. I can picture a sinking liner to left right now and it’s not a pretty picture. If you’re an Indians fan, pray that I’m wrong, but don’t act like you can’t picture it too.
Of course, this being baseball, he’ll probably rob someone of a homer and hit two himself while Napoli goes for the cycle. Never try to predict this stuff, folks.
1. Carlos Santana (S) LF
2. Jason Kipnis (L) 2B
3. Francisco Lindor (S) SS
4. Mike Napoli (R) 1B
5. Jose Ramirez (S) 3B
6. Lonnie Chisenhall (L) RF
7. Roberto Perez (R) C
8. Tyler Naquin (L) CF
9. Josh Tomlin (R) P
1. Dexter Fowler (S) CF
2. Kris Bryant (R) 3B
3. Anthony Rizzo (L) 1B
4. Ben Zobrist (S) LF
5. Willson Contreras (R) C
6. Jorge Soler (R) RF
7. Javier Baez (R) 2B
8. Addison Russell (R) SS
9. Kyle Hendricks (R) P
For reasons that are not entirely clear to me the governor of my state, John Kasich, was on The Dan Patrick Show today. He had some bad news, unfortunately. According to Kasich, “baseball is going to die.”
It’s based mostly on his belief that, because some clubs are rich and some clubs are not so rich, and because players make too much money, poor teams cannot compete and fans cannot find a basis for team loyalty. He cites his boyhood rooting for the Pittsburgh Pirates and the ability for fans to root for players on the same teams year-in, year-out and claims that, if you don’t root for a high-payroll team, “your team is out before the All-Star Break.” Which is demonstrably not true, but he was on a roll so Patrick let him finish.
The real issue, Kasich says, is the lack of revenue sharing in the NFL-NBA mold. He makes a reference to “my buddy Bob Castellini,” the owner of the Cincinnati Reds, and says stuff about how the Reds can’t compete with the Cubs on payroll. His buddy Bob Castellini, by the way, is worth half a billion dollars, purchased the Reds for $270 million, they’re now worth an estimated $905 million, and they just signed a lucrative new TV deal, so thoughts and prayers to his buddy Bob Castellini and the Reds.
Kasich is right that baseball does not have straight revenue sharing like the NFL and NBA do. But he’s also comically uninformed about the differences in financial structure and revenue sources for baseball teams on the one hand and other sports on the other. He talks about how NFL teams in small towns like Green Bay can do just great while the poor sisters in Cincinnati can’t do as well in baseball, but either doesn’t realize or doesn’t acknowledge that local revenue — especially local TV revenue — pales in importance in football compared to baseball. If the Packers had to make all of their money by broadcasting games to the greater Green Bay area their situation would be a lot different. Meanwhile, if the Yankees had to put all of the revenue they receive via broadcasts in the greater New York area and give it to the poorer teams, it would something less than fair, would it not?
Wait, that’s it! I realize now why my governor did not do as well in the Republican primaries as he expected to! HE’S A COMMUNIST!