While negotiations are on with the Ricketts family, the Chicago Cubs have decided to restart talks with a rival bidding group, according to reports on Thursday.

Tribune Co., which filed for bankruptcy, have been trying to get the baseball team off of their hands and since two years now, it has been pursuing the cause to lower their debts. The company had finally decided to sell their team to the Ricketts family for $900 million in January, along with some other assets as well. Cubs looking for a new Alpha Male>

However the period of exclusivity between the Tribune Co. and the Ricketts family has ended as the Tribune Co. is now in talks with another group comprising of equity investors Marc Utay and Leo Hindery.

A Tribune Co. spokesperson is said to have come out with a statement saying that the talks with the Ricketts family are heading in the right direction. Despites analysts valuing the club and its assets at over $1billion, recession and a poor economy have taken its toll and the Tribune Co. is now looking to get it off its hand at a much lower price.

The weak publishing sector forced the owners of the Los Angeles Times and the Chicago Tribune to look at revamping its debt reduction policy after the company filed for bankruptcy way back in December 2008.

The company has said to have begun formal discussions, along with its bankers JP Morgan, with the Utay/Hindrey group and according to sources close to the deal, a decision could be reached as early as next week.  Waiting for its New Owners>

However, most sources believe that the re-emergence of the Utay/Hindrey group is more of a pressure mechanism for the Ricketts family to reach a decision rather than an actual attempt to sell the team to them.

While the funding sources for the Ricketts family have been finalized, according to Reuters, Tribune Co. and the Ricketts family are still at a disagreement when it comes to the valuation of the broadcasting rights of the Chicago Cubs.

Anjali nambissan
Sports Pundit member

Comment on This Article

0 comments
Reply to