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* The Flubs’ ignominious legacy continues…
The Chicago Cubs may consider a bankruptcy filing as part of closing the sale of the team, according to sources close to the major league ball club.
Making it even flubbier, the Chicago Tribune got beat on the story about their own company by Bloomberg…
A brief Cubs bankruptcy would be a legal maneuver to clear the team from any future liability in the Tribune bankruptcy, according to two of the people familiar with the matter. Sam Zell, chief executive officer of Chicago-based Tribune, pledged the company’s interest in the Cubs as collateral when he negotiated the deal to take the publisher private in 2007, according to one of those people.
“You take it in the front door, and it’s just like you’re getting radiation,” said Michael J. Cramer, a former president of the Texas Rangers who teaches sports business at New York University. “It comes out the other door about a half minute later. It’s clean.”
And…
People familiar with the negotiations said a Cubs bankruptcy filing would be designed to allow for the fast disposition of the team’s assets. It could be accompanied by a motion to sell the team with an agreed-upon bidder. The entire process could take as little as 20 days, said Gregory A. Cross, the attorney who heads the bankruptcy practice at Washington- based Venable LLP and isn’t involved.
Not all bankruptcy sales move as fast. The National Hockey League’s Phoenix Coyotes filed a Chapter 11 case in May with plans for a quick transaction, only to have it descend into a legal fight about whether the team may be sold and moved without the league’s consent.
One also wonders, considering Zell’s history, if there’s a tax angle involved.
* Meanwhile, trouble at the Children’s “Museum”?
A moribund economy now may have a better chance of blocking the project than lawsuits by parks activists and neighborhood opponents. Fundraising has foundered while projected costs have climbed by tens of millions to $150 million or more, Crain’s has learned. Sources close to the project say odds now are 50-50 at best that the Grant Park plan will proceed.
The “museum” responds…
“Chicago Children’s Museum is moving forward with the plan to relocate to Daley Bicentennial Plaza in Grant Park. There is no news to report in that regard. Greg Hinz’s piece in Crain’s Chicago Business relies only on unnamed sources, and should be viewed with extreme skepticism.”
Greg’s piece looked pretty sound to me.
* When Sen. Roland Burris announced that he wouldn’t run again, he said he didn’t want to split his time between governing and fundraising…
“In making this decision I was called to choose between spending my time raising funds or spending my time raising issues for my state”
But…
Illinois U.S. Senator Roland Burris says he still plans on holding fundraisers, even though he’s not running for a full senate term in 2010… Burris says he’s owes $800,000 in legal fees, and he says he’ll be turning to his colleagues in the senate for help.
* And, finally, go take a look at Ramsin Canon’s excellent and finely balanced piece on why we should and shouldn’t care about the Homero Tristan resignation.
posted by Rich Miller
Monday, Jul 13, 09 @ 2:21 pm
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It’s been 101 years, aren’t they already bankrupt?
Comment by Scooby Monday, Jul 13, 09 @ 2:33 pm
“Burris says he’s owes $800,000 in legal fees, and he says he’ll be turning to his colleagues in the senate for help.”
So he decides to skate along this gray area (to the point where Springfield’s States Attorney conducted a perjury investigation)…
Racks up 800k in legal bills (I thought his law partner was representing him)…
And now he expects the Senate’s Dem caucus to kick up vital mid-term campaign funds so he can get away with his actions and behavior scot free?
Go. Away. Now.
Comment by Rob_N Monday, Jul 13, 09 @ 2:37 pm
The Chicago Cubs may consider a bankruptcy filing…
Have you watched them play recently? Considering? Looks like they’ve filed after Opening Day!
Comment by VanillaMan Monday, Jul 13, 09 @ 2:41 pm
Does bankruptcy erase their won-lost record?
Comment by Excessively Rabid Monday, Jul 13, 09 @ 2:47 pm
Bankruptcy ain’t what it used to be.
Comment by Sewanee Monday, Jul 13, 09 @ 2:48 pm
Rumor is that Steve Bartman will be presiding over the bankruptcy proceedings.
Comment by trafficmatt Monday, Jul 13, 09 @ 2:54 pm
If Burris can’t raise any money for ‘re-election’ why does he think he can raise money to pay off his legal fees? Maybe he can ask Blago’s lawyers for some scrap since they can tap into his election money. I hope every time he thinks about his 800k in legal fees and he remembers the day he accepted this position from Blagojevich.
Comment by this voter will remember Monday, Jul 13, 09 @ 2:54 pm
I know that books can be cooked, but really? There are way too many lemmings willing to hand over their dollars for them to truly be bankrupt, no matter how many eight-figure salary stiffs the team employs. Zell seems to just be manipulating the system by playing any card he can think of, shocker as that might seem.
Comment by Baines for Prez Monday, Jul 13, 09 @ 2:55 pm
what’s up with all the injuries to the players? some of them sound phony.
Comment by Amy Monday, Jul 13, 09 @ 3:02 pm
Maybe Burris should file for bankruptcy. Seems to work for virtually every other group that is in the news and owes a lot of money. Stiff the people who you owe money to, that’s the ticket.
Comment by zatoichi Monday, Jul 13, 09 @ 3:32 pm
Bankruptcy might be worth it for the Cubs if a judge can order the selling of the contracts of their starting Stooges… I mean outfielders for the price of a good fungo bat!
Comment by fedup dem Monday, Jul 13, 09 @ 3:38 pm
let’s combine the three themes of this section.
Roland Burris can be appointed the new head of the Cubbies, which really are a team that only little kids who appreciate museum pieces can support, and Zell can sell it to Roland as a tax loss for the six hundred bucks that Burris has in his campaign fund.
Comment by Capitol View Monday, Jul 13, 09 @ 3:44 pm
By the time all the litigation over the Grant Park location is finished the board of the Chicago Children’s Museum will find its costs at (or above) the article’s high-end estimate of $175 million. They’ll never be able to raise such sums.
Look for the CCM to make some face-saving, finger-pointing declaration that, “Due to the delay and high cost of litigation brought by those who selfishly seek to prevent all of Chicago’s children from enjoying the lakefront that is their birthright, the CCM is eager to put this distraction behind us, find an alternate site, and continue the important work of our mission to educate tomorrow’s leaders today, give bored parents a place to dump their kids for two hours, and find a cure to pediatric cancers.”
Comment by Serves 'em right Monday, Jul 13, 09 @ 3:51 pm
Wait a minute….. Obama is a Cub fan, and he gave millions to companies to help prevent bankruptcy so why doesn’t he do that for the flubs???
Comment by Boscobud Monday, Jul 13, 09 @ 4:07 pm
The only people who loved the Grant Park Chicago Children’s Museum site seemed to be Mayor Daley and Gigi Pritzker. So it’s no surprise that fundraising is off, between a bad economy, a relatively frivolous organization, and the horrible mess around the site selection.
Although there is some value to giving a bored parent a place to dump the kids (uh, been there, done that), there’s always the YMCA!
Comment by Anita Monday, Jul 13, 09 @ 4:08 pm
The Flubs are just trying to get out of Bradley’s and Zambrano’s contracts. The owe those two busts over $100 million combined. What buyer would be stupid enough to eat that? Add in what they are paying Lee and that 3rd baseman who never plays and you could probably buy the Seattle Mariners.
Comment by Bill Monday, Jul 13, 09 @ 4:18 pm
Zambrano, bust? Hardly.
Zambrano - 3.53 ERA
*****
Buehrle - 3.66 ERA
Floyd - 4.44 ERA
Danks - 3.91 ERA
Contreras - 4.54 ERA
Richard - 5.42 ERA
Colon - 4.23 ERA
Oh, and this one: Zambrano - 40 AB, 3 HR
*****
Beckham - 118 AB, 3 HR
Anderson - 183 AB, 2 HR
Getz - 240 AB, 1 HR
Podsednik - 261 AB, 3 HR
“Jealousy is your only weapon. But its one of those coyote & road runner - type weapons that turns around and points right back at the coyote.”
Comment by George Monday, Jul 13, 09 @ 4:38 pm
Obviously a tax dodge move - would any “honest” judge go along with such a corrupt move? Hmmm, maybe, this is Chicago afterall and we have a reputation to uphold!
Comment by A Citizen Monday, Jul 13, 09 @ 4:58 pm
OK, my beloved Cubs have been athletically bankrupt all season, and they have some distressed assets that need attention. Milton Bradley and Alphonso Soriano are stealing from the Cubs and all of us suckers who pay for tickets.
If the Ricketts close this deal with those contracts, the Cubs are screwed for the next several years. The Tribune company ought to eat those salaries before the deal gets done. Oh, and Jim Hendry ought to get an award for spending a ton more money to put a worse team on the field.
It would be like giving Homer Simpson the Montgomery Burns Award for Outstanding Achievement in the Pursuit of Excellence.
And I say this with love.
Comment by 47th Ward Monday, Jul 13, 09 @ 5:34 pm
To Serves ‘em Right: There’s nothing funny about cancer.
You shoulda quit while you were ahead.
Comment by DuPage Dave Monday, Jul 13, 09 @ 6:15 pm
I have to tell you since that Cubs bankruptcy thing zinged over the wire; all of those red shirted rednecks down her have been having a field day with that announcement.
I am expecting some content appropriate T-Shirts on the subject to be for sale here by the time the Home Run Derby lets out tonight.
P.S. While I didn’t expect to see many Cubs jersey and caps here, I am surprised to see the number of people sporting White Sox apparel.
Comment by Quinn T. Sential Monday, Jul 13, 09 @ 6:34 pm
Hey everyone, does anyone know where i can find how much county board members get paid in Illinois. I live in St. Clair County and would like to know how much st. clair board members make, Madison County board members and Jersey County members.
Thanks.
Comment by Jay Brant Monday, Jul 13, 09 @ 7:35 pm
nevermind I found it.
Comment by Jay Brant Monday, Jul 13, 09 @ 9:54 pm
“One also wonders, considering Zell’s history, if there’s a tax angle involved.”
Zell would shoot his mother if doing so allowed him to defer some tax liability.
– MrJM
Comment by MrJM Monday, Jul 13, 09 @ 10:51 pm
To DuPage Dave: Re-read the post and you’ll note that it doesn’t make fun of cancer. It makes fun of people who make absurd claims.
Comment by Serves 'em right Monday, Jul 13, 09 @ 11:12 pm
Capt FaX:
Not sure is this pierced your consciousness, but Charley Wheeler has an excellent piece on ethics
It also makes II Editor Dana H look a little dopey… read away
Ends and Means
Lawmakers used almost surgical precision to address problems linked to former governor
by Charles N. Wheeler III
Is the glass surprisingly near full or virtually bone-dry empty?
That’s the underlying question for those who would rate the General Assembly’s response to the calls for fundamental changes in how Illinois government works in the wake of the corruption scandal involving former Gov. Rod Blagojevich.
Some reformers and editorial boards — joined by partisan Republicans — were quick to give the Democratic-controlled legislature failing marks for not adopting all the recommendations from Gov. Pat Quinn’s blue-ribbon reform panel and other change advocates.
In particular, the reform crowd complained that the state’s first-ever proposal to limit some campaign contributions was more loophole than law. GOP leaders grumbled that nothing was done to rein in the power of the majority Democrats and their leadership. Hyper-ventilating editorial writers deplored that lawmakers shelved a plan to allow voters to fire the governor and other elected officials.
Despite such lamentations, a closer examination shows that lawmakers addressed with almost surgical precision the problems linked to the former governor, especially the pay-to-play allegations that led to Blagojevich’s arrest and subsequent indictment.
Comment by CircularFiringSquad Tuesday, Jul 14, 09 @ 8:04 am
Boscobud, you’re just not paying attention. Obama is a big-time Sox fan. He was just on the radio this morning ripping the Cubs. It gives him street cred.
The Cubs are obviously abusing the bankruptcy system here, and I’m sure it’s for the benefit of Gravedancer Zell.
How can you claim bankruptcy when you sell out every game at outrageous prices for tickets and concessions? They’re a cash cow. And they give away their broadcasting rights to WGN and Comcast.
Plus, unlike the Sox, all the girls at the park are pretty and have their own, original teeth.
By the way, all you baseball fans, if you get a chance to see Albert Pujols play in person, take it. He’s the best player of his generation. He’s like Frank Thomas in his prime; you have to stop whatever you’re doing and watch him hit.
Comment by wordslinger Tuesday, Jul 14, 09 @ 9:29 am