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Another potential complication to the Ricketts family final purchase of the Chicago Cubs has arisen. According to IRN News the Chicago Tribune Company, who bought the Cubs in 1981 for 21 million dollars, may have to take the team into bankruptcy to clear the Tribune company of any future debts related to its ownership of the team.
This would allow bidders, including the Rickettt's family, to make new bids for the team. It is believed the asking price for the Cubs and Wrigley Field is 900 million dollars. That number may be a little high since Forbes Sports money has their current value at 700 million.
Michael J. Cramer, a professor of sports business at New York University, explained the process of bankruptcy like this,” “You take it in the front door, and it’s just like you’re getting radiation. It comes out the other door about a half minute later. It’s clean.”
If the Cubs do enter Federal Bankruptcy Court, they would be the first MLB franchise to go bankrupt in the last 39 years. In 1970 the Seattle Pilots went broke and where eventually bailed out by current MLB Commissioner Bud Selig.
While it is true the Baltimore Orioles were sold in 1993 out of a bankruptcy proceeding, which was a personal bankruptcy filing of then owner Eli Jacobs.
Essentially the Tribune Company is looking to clear itself of current and future liabilities, and give the new owners a strong start to rebuild the finances of one of the most popular team in the MLB.
While MLB has final approval over who ultimately buys the Cubs, if a filing happen the court will have its say as well.
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• American League first half attendance report
• Is going to an MLB game too expensive?
• Isotopes set to cash in on Ramirez stint
• MLB ratings steady so far in 2009
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