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Cubs Bids Are In?

The deadline for bids for the purchase of the Chicago Cubs was yesterday and seven bids were submitted for the package of the team, Wrigley Field and the team's 25% in Comcast
Sportsnet Chicago. Unexpectedly, one bid was also received for Wrigley Field alone, which the Tribune Company had been exploring as a standalone sale. The sale of the iconic ballpark as a standalone was thought by Sam Zell, the new owner of the Trib, to be the way to maximize value, but it was likely to only complicate the sale of the Cubs as it raises a whole host of questions about the lease between the team and the new owner of Wrigley.

The bidders contain few surprises as most of the previously identified likely suitors submitted bids, including the favorite in the clubhouse, John Canning, close friend of Bud Selig and chairman of Chicago based private equity firm Madison Dearborn Partners. Among the others submitting bids were Dallas Mavericks owner Mark Cuban, Chicago Wolves owner Don Levin and the special purpose acquisition company Sports Properties Acquisition Corp., a shell corporation with $215 million looking to buy sports properties headed by New York taxi magnate Andrew Murstein.

Chicago based Syndicated Equities Corp. submitted the bid for Wrigley Field alone. How that bid will fare depends in part on how large the package bids are and how complicated it will be to separate Wrigley from the team. I wouldn't expect to see Wrigley sold separately - the decrease in value to the team would be considerable. Expect to see the price of the package approach $1billion, especially with the Cubs doing so well on the field this year. There is definitely a winning premium, especially when attached to iconic teams like the Cubs. Any sale is subject to approval by the owners of the other teams in major league baseball.

Full post as published by Sports Biz on July 19, 2008 (boomark / email).