Cubs end pursuit of Peavy? November 19, 2008
Posted by wpbc in chicago cubs.Tags: 08-09 offseason, jake peavy, ryan dempster, wpbc poll
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I should be real careful writing this because of the source I am about to use. (Cough, cough, cough…clearing throat) Carrie Muskat reports on the MLB.com Hot Stove Blog:
a Cubs source told MLB.com on Wednesday that those talks have ended. The Cubs could either sign Ryan Dempster or add Peavy in a trade, but can’t afford both. With Dempster agreeing to a four-year contract on Tuesday, that pretty much ends discussions with the Padres about the right-hander.
Well, at least this thing won’t drag on as long as the Brian Roberts saga did last winter.
2009 Payroll? - So with Dempster signed the Cubs payroll appears to be right around where they ended last season near $130 million. Jim Hendry has said that the payroll will go up some, but when you consider the economic times we are in and the state of the Tribune and the Cubs sale I wonder how much. What do you think? Take the first wpbc poll…
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Cubs about to sign Dempster November 18, 2008
Posted by wpbc in chicago cubs.Tags: 08-09 offseason, ryan demspter
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The Cubs interweb-o-sphere is running with the story that Ryan Dempster is on the verge of signing a big contract with the Chicago Cubs. Longtime Cub scribe, Paul Sullivan updates the latest on the Trib’s baseball blog Hardball:
The Cubs are expected to announce soon that Ryan Dempster has agreed to a four-year deal, team sources said Tuesday.
Foxsports.com reported Tuesday that the two sides were close to four-year deal for a little more than $50 million, making Dempster the second-high paid pitcher on the team.
Cubs general manager Jim Hendry was unavailable for comment. Dempster’s agent, Craig Landis, did not return phone calls.
Jim Hendry has never believed in the ‘buy low, sell high’ way of doing business. I predict this might go down as one of his worst decisions as Cubs General Manager.
Yep, I don’t want the Cubs to make this deal. There is no way Dempster is worthy of a 4 year deal. As a matter of fact a 4 year deal for him after one season as a starter is laughable. The dollar amount is even more of a joke. It appears that they will make this deal though. I guarantee that we will never see Ryan Dempster have a season like he did in 2008. I know that the price of pitching is very high in major league ball, but at this point the Cubs should pursue other options and take the sandwich pick for Dempster. By all reports the Cubs are not going to do that.
Zell trying to fast track Cubs sale November 17, 2008
Posted by wpbc in chicago cubs.Tags: cubs sale, mark cuban, sam zell
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Crain’s Chicago Business says that if Sam Zell get’s his way, there will not be a ‘next year’ for Tribune ownership of the Cubs:
Mr. Zell expects to select a finalist from the five remaining bidding groups and submit the deal for Major League Baseball’s approval sometime in December, a person familiar with the sale says.
He is fast-tracking the sale — despite a credit crunch that seemed to put his year-end deadline in doubt — as pressure mounts to raise as much as $1 billion to chip away at the mountain of debt from his 2007 buyout of Tribune. With cash flow plummeting from weak advertising sales at Tribune’s newspapers, selling half the team probably wouldn’t raise the cash he needs. He has other assets to unload, but it would be difficult to do so quickly in a tough credit market.
Some observers question whether Mr. Zell will be able to pull off the sale at the price and timing he wants.
Looks like he is between a rock and a hard place. Although the Trib floated the idea of retaining 50% owneship, that has not been welcomed by the suitors.
At least one bidding group has no interest in acquiring only half the team, according to a person familiar with its plans.
If you can somehow put together the financing for this, why not buy as much as you can while the thing is discounted? Zell has to sell, no need to pay top dollar any longer.
Analysts estimate Tribune will need to pay back another $600 million to $1 billion by yearend to keep its debt in line with its shrinking cash flow. Lenders could opt to give Tribune extra time to make good, especially if a deal for the Cubs were in place but not yet completed, Mr. Courtney says.
It only takes one. All Zell needs is one crazy to make this whole headache go away:
“Any buying group’s personal wealth and ability to borrow is sure to have taken a big hit,” says Jeff Phillips, a Virginia-based managing director and specialist in sports-business deals at Stout Risius Ross Inc., an investment banking firm not involved in the Cubs sale. “It’s still a unique asset. All it takes is one guy to say, ‘I want it, and I’m willing to pay up.’ “
UPDATE 11:19 — That one will probably not be Mark Cuban. Cuban has probably just given the MLB owners who detest him the excuse not to allow him into their club. YAHOO!–Dallas Mavericks owner Cuban charged with insider trading
Rosenthal: Kevin Gregg to the Cubs; Wood era ends November 13, 2008
Posted by wpbc in chicago cubs.Tags: 08-09 offseason, kerry wood
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Fox Sports Ken Rosenthal has broken the story that Marlin’s closer Kevin Gregg is now a member of the Cubs bullpen:
The Cubs, facing the possible loss of closer Kerry Wood, have acquired right-hander Kevin Gregg from the Marlins, according to major-league sources.
Gregg, 30, closed for the Marlins for most of last season, but the Cubs likely would use him as a bridge to a Carlos Marmol if Wood departed as a free agent.
Marmol would take over as the closer, with the Cubs likely using a number of relievers — including Gregg, Jeff Samardzija, Angel Guzman, Neal Cotts, and Kevin Hart — leading up to the ninth inning.
It is not yet known whom the Marlins will receive in return for Gregg.
The Marlins paid Kevin Gregg $2.5 M in 2008, he is arbitration eligible this year.
Update 3:25: The player traded for Gregg is prospect Jose Ceda. Cubs GM Jim Hendry has confirmed that the Cubs will part ways with Kerry Wood.
I think we all feel that Kerry is certainly deserving of a three- or four-year contract,” Hendry said. “He’s done everything this organization has asked for the last 14 years, been a warrior the last couple of years. He’s come back and health-wise stood the test of time, taken the ball every day we needed, and had no hang-ups, except for (missing one month with a blister injury).
“We’re just in a situation, as Kerry fully understands, that that length of deal, for the kind of salary he’d command right now, is not our first priority. We certainly have to finish our rotation, we have offensive situations to address, and by having the prominence that (Carlos) Marmol now brings to the table, it certainly doesn’t come before the other needs we have. We felt it was time Kerry goes out and does what’s best for him and his family, and gets a huge multi-year deal if possible.”
This marks the end of an era that began so promising back in 1998. Like most Cub fans I have been a big fan of Wood through the years, I had really hoped that they re-signed him. But this is a business and sometimes the best business moves are not the ones you make because of emotional ties. I will have more on Kerry Wood in a post about him in the next few days.
Chi-Ball: Cubs sale down to three November 13, 2008
Posted by wpbc in chicago cubs.Tags: chicago cubs, cubs sale, ricketts family, sam zell
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The blog over at Chi-Ball is reporting the Cubs sale is down to three and we will know more by the weekend. It also reports that Zell is now partners with Ricketts on the deal. Here is what a Source told Chi-Ball:
The bidding is down to three prospective owners.
The deal is being offered as a “partnership” with Sam Zell.
According to the source, there are not many people in the current economical environment that can be fluid enough with their funds to make a deal like this work.
Tom Ricketts is still the leader at this time, and does not see any obstacles for him presently.
There is a group still alive that hasn’t been mentioned by the media.
We should know more by the weekend.
Not much new here, but I do like how they put this whole thing together. Of course the mystery group leads to some fun speculation.
Peavy likely headed to Braves November 13, 2008
Posted by wpbc in chicago cubs.Tags: 2008-9 offseason, atlanta braves, chicago cubs, jake peavy
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According to reports Jake Peavy is mulling over a trade that will send him to the Atlanta Braves:
Jake Peavy may soon be on his way to Atlanta, according to an online report.
CBSSports.com reported Wednesday night that the San Diego Padres will ask their ace to waive his no-trade clause to facilitate a deal with the Atlanta Braves, one of seven clubs to which Peavy has agreed to be traded.
The website reported that the Braves would receive shortstop Yunel Escobar, minor league outfielder Gorkys Hernandez, a starting pitcher — either Charlie Morton or Jo-Jo Reyes — and a relief pitcher — Blaine Boyer, minor leaguer Jeff Locke or another, unnamed minor leaguer.
I give Jim Hendry alot of credit for staying in this thing as long as he did when the Cubs just don’t have the minor leaguers to pull off a deal of this nature.
Towers has said Peavy most likely will be traded this offseason. The Chicago Cubs, another team on Peavy’s list, are also heavily involved in trade talks, but their package reportedly is seen as inferior to what the Braves are offering. That is why the Cubs apparently are trying to get a third team involved to sweeten their offer.
If the Peavy approves the deal, it steps up the importance for the Cubs to add a free agent pitcher. Either re-sign Ryan Dempster or go after AJ Burnett or Derek Lowe.
More concerns over Cubs sale… November 12, 2008
Posted by wpbc in chicago cubs.Tags: chicago cubs, cubs sale, sam zell
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Bloomberg reports this morning that Standard & Poors has cut the debt rating for Tribco by two levels. Concerns about the potential sale (or lack of a sale) of the Chicago Cubs is cited as a major concern:
Tribune Co., the newspaper publisher and broadcaster taken private by billionaire Sam Zell, had its debt rating cut two levels to CCC by Standard & Poor’s, which said the Chicago Cubs may sell for less than anticipated.
The financing environment may limit bids or delay the sale of the Major League Baseball team, Wrigley Field and a stake in a television network, S&P said today in a statement. The rating is four levels above default.
Proceeds from the sale, earmarked to reduce Tribune’s $11.8 billion in debt, may be “significantly below” the expectation of $1 billion or more and may not be received by year-end, S&P analyst Emile Courtney wrote in a statement. Yesterday, Chicago- based Tribune reported a third-quarter loss of $121.6 million. Sales fell 10 percent to $1.04 billion.
Uncle Lou named NL manager of year November 12, 2008
Posted by wpbc in chicago cubs, mlb.Tags: chicago cubs, lou piniella
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The Cubs brought home another postseason award for the 2008 season. Today skipper Lou Piniella was named National League Manager of the Year. Piniella led the Cubs to 97 regular season wins, the most in the National League. The Cubs also went to the postseason for the second year in a row for the first time since the 1907-1908 Cubs clubs won back-to-back NL Pennants and World Championships.
Cubs sale: Zell sets another deadline… November 11, 2008
Posted by wpbc in chicago cubs.Tags: chicago cubs, cubs sale, recession, sam zell
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…according to the Bright One the Tribsters have now set November 26th as a deadline for potential bidders to prove they can still come up with the financing to make the deal.
Tribune is “looking for confirmation on valuation and structure,” the source said. The company wants to unload the team for about $1 billion in a way that minimizes taxes, but some think that price is unrealistic.
LMAO, ‘unrealistic’…how about a fucking pipe dream. When Cuban made that $1.2 billion offer last summer, Zell should have been all over it. He wasn’t and now he’s gonna pay. How ugly has this whole thing gotten, well the Tribsters may not be able to unload the once coveted franchise and guess what, the newspaper business ain’t helping matters. This is ugly:
On Monday, Tribune reported a net loss of $121.6 million across its operations for the third quarter, compared with a profit of $152.8 million for the same period a year ago. Revenue declined 10.5 percent to $1.04 billion.
and more…
The company said print advertising revenue fell 19 percent in the third quarter, to $111 million, and that total paid circulation was off 7 percent from a year ago to 2.2 million copies Monday through Friday. Price hikes reduced losses in circulation revenue to just 2 percent, Tribune said.
Revenue from the broadcasting division fell 8.3 percent to $264.4 million, the company reported.
This sale has been really poorly managed by Zell, his delay in getting the deal done while he putzed around with the state of Illinois could cost the Tribune company up to $500 million. Think about that one for a second my friends. The Tribsters have already said they may keep up to 50% of the club. The truth is the Cubs are not worth nearly what they were just a few months ago. Zell and Company may want to wait this whole thing out, but they need cash to pay down their debt.
So what happens next? Your guess is as good as mine. I don’t think Zell will have a deal anytime soon. But the longer he waits the less this franchise could be worth as the whole economy bottoms out. At some point in the near future I will not be surprised to hear that the Cubs freeze payroll to 2008 levels and if things get even worse, we could see more drastic measures by the Tribsters. It is hard to imagine revenues in 2009 being what they were in 2008. At some point the global financial crises will impact the club on the field, it might be sooner than any of us suspect.
Soto wins ROY November 10, 2008
Posted by wpbc in chicago cubs.Tags: chicago cubs, geovany soto
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Earlier today, Cubs catcher Geovany Soto was named NL Rookie of the Year for 2008. In the long history of this award, Soto is the fifth Cub to win the award. Here are the 4 past winners:
1961 Billy Williams
1962 Kenny Hubbs
1989 Jerome Walton
1998 Kerry Wood
The 25 year old Cub catcher had an outstanding season taking over for Jason Kendall, who caught the second half of 2007 for the Cubs. Geo’s season had several highlights including: an inside the park homerun in Houston, an All Star Game start in NYC, he caught Z’s no hitter in Milwaukee against the Astros and that same week hit a three run bomb with two outs in the bottom of the ninth in a Cubs dramatic 12 inning win over the Brewers. Soto played a very important role in getting the Cubs back to the playoffs.
