Kap's Corner

All of the Misinformation Out There About the Sale of the Cubs

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Who will be sitting in the owners suite when the sale finally goes through?

There is so much misinformation regarding the sale of the Chicago Cubs from Tribune Company that I have to set the record straight and separate fact from fiction.

First, here is the fiction reported in a Reuters story this morning that is loaded with inaccuracies. The story quotes anonymous sources that say the Tribune has reached an agreement on the terms for a sale of the team to a group led by private equity investor Marc Utay.

That is 100% incorrect.

The Tribune has reached no agreement to sell the Cubs with ANYONE and that includes the Ricketts family, the Utay group, or the man on the moon. Tribune VP of Communications Gary Weitman confirmed to me today that no agreement has been reached with anyone.

The story also says that by reaching an agreement with the Utay group that the company now has two offers to submit to the bankruptcy court. This is also wildly inaccurate.

Several sources that I spoke with this afternoon told me that the bankruptcy court does not sift through multiple offers. They simply look at the offer that is presented to them and they say yes or no if they will give their approval.

Here is how the process will play out. Once the Tribune Company reaches an agreement with a prospective buyer they will then submit the terms of the deal to Major League Baseball to make sure that the deal is structured properly along the rules that MLB has in place regarding the sale of a team.

Then once that green light is given the agreement will be sent to the bankruptcy court for their approval which various sources have told me is a lock to happen. Then and only then will the transaction be sent to Bud Selig and he will call for a vote of the other owners.

If they approve of the new ownership group then the deal will become official. Should the bankruptcy committee approve of a group but the other owners of MLB do not approve them then the deal falls through. The bankruptcy process does not take precedence over Major League Baseball's approval policy.

It does not matter if there is a higher bid out there for the team. If the other owners don't approve of who that bid is from then it does not pass. The dollars being offered are irrelevant if the person or group offering them doesn't receive league approval. More to come as this story unfolds but just know this....There is no deal to sell the Cubs to anyone just yet. It will happen but just not yet.

Kap

I will have breaking news updates in the sports world on Twitter via @thekapman

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2 Comments

flyball said:

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thanks! I was wondering which had to go first the court's or the owners' approval

Doc said:

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After 2 1/2 years, how much longer could this sale be stretched out for? Ugh!

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