Monday, October 12, 2009

No, The Cubs Aren't The Ones Bankrupt...

((HT: Chicago Tribune/Sachdev))

It's the Tribune Company and it's a formality...

They're putting the Cubs through bankruptcy court to give the new owners "comfort that the creditors in the original case have no claim against the sold company." When it filed for bankruptcy, Tribune Co. was $13 billion in the hole...

The Cubs' stay in bankruptcy is expected to last just one day. The bankruptcy judge in the Tribune Co. case has scheduled a hearing on Tuesday.

The judge has already approved Tribune Co.'s transaction with the Ricketts family. Under terms of the deal, the Cubs, Wrigley Field and 25 percent of Comcast SportsNet Chicago will be placed in a limited partnership owned 95 percent by the Rickettses. Tribune Co. will retain 5 percent in the complex structure intended to reduce the sizable tax bill that would otherwise accompany an outright sale. The Ricketts family will contribute $823 million to the partnership. Tribune Co. will receive about $740 million after taxes and other adjustments.

Once the bankruptcy judge clears the Cubs' bankruptcy case, the Ricketts family is expected to close its deal with Tribune Co. by the end of the month

And then they'll pass on the cost to you, dear consumer...
Brace for it...

No comments: