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Viva Medias B's
07-13-2009, 10:12 AM
The Chicago Tribune is reporting (http://www.chicagotribune.com/business/chi-biz-chicago-cubs-bankruptcy-july13,0,5186979.story) that one of its subsidiaries, the Chicago National League Ballclub, Inc., may file for bankruptcy. This reportedly would be done as a step in getting the ballclub sold.

jabrch
07-13-2009, 10:28 AM
The Chicago Tribune is reporting (http://www.chicagotribune.com/business/chi-biz-chicago-cubs-bankruptcy-july13,0,5186979.story) that one of its subsidiaries, the Chicago National League Ballclub, Inc., may file for bankruptcy. This reportedly would be done as a step in getting the ballclub sold.

Vacate their debts...screw their creditors, screw the Trib shareholders, then sell it. Sounds like something Zell would do.

SOXSINCE'70
07-13-2009, 10:34 AM
Coop'll fix 'em.:D:

g0g0
07-13-2009, 10:44 AM
Move them to Las Vegas...

Dick Allen
07-13-2009, 10:47 AM
Makes sense, their fans are mentally bankrupt.:redneck

Hitmen77
07-13-2009, 11:10 AM
Somewhere out there, Hangar18 is celebrating.

Maybe somebody who understands bankruptcy laws can explain this to me. As far as I have ever heard, the Cubs were a money making machine for the Tribune Company. If that's the case how can the Cubs file for bankruptcy if they are profitable and aren't themselves bankrupt? Does the fact that the Cubs parent company (TribCo) is in bankruptcy allow the Trib to have one of its profitable subsidiaries separately file for bankruptcy?

Hitmen77
07-13-2009, 11:11 AM
Makes sense, their fans are mentally bankrupt.:redneck

:lol:

Soxman219
07-13-2009, 11:19 AM
Can someone explain what this means?

jabrch
07-13-2009, 11:21 AM
Can someone explain what this means?


Probably nothing - it is just to untangle Cubs assets from Tribune assets. The lawers and accountants will make money on it. Trib creditors/stockholders get more screwed.

Johnny Mostil
07-13-2009, 11:26 AM
The linked article said the Cubs would be the first team in nearly forty years to file for bankruptcy. Anybody know the last (and why?)?

EDIT: D'oh! I should have known this: it was the Pilots. Bloomberg has longer story here (http://www.bloomberg.com/apps/news?pid=20601109&sid=aArEAGUlLmS8).

Hitmen77
07-13-2009, 11:30 AM
The linked article said the Cubs would be the first team in nearly forty years to file for bankruptcy. Anybody know the last (and why?)?

The Seattle Pilots in 1970 before Uncle Bud bought them and moved them to Milwaukee.

I don't know much details about why the Pilots ended up bankrupt other than they only lasted one season in Seattle after being an expansion team in 1969.

Johnny Mostil
07-13-2009, 11:31 AM
The Seattle Pilots in 1970 before Uncle Bud bought them and moved them to Milwaukee.

I don't know much details about why the Pilots ended up bankrupt other than they only lasted one season in Seattle after being an expansion team in 1969.

Yes, indeed. Thanks!

Chicken Dinner
07-13-2009, 11:56 AM
Does this give them an opportunity to dump contracts then like the airlines and auto workers have gone through?

The Immigrant
07-13-2009, 11:57 AM
Somewhere out there, Hangar18 is celebrating.

Maybe somebody who understands bankruptcy laws can explain this to me. As far as I have ever heard, the Cubs were a money making machine for the Tribune Company. If that's the case how can the Cubs file for bankruptcy if they are profitable and aren't themselves bankrupt? Does the fact that the Cubs parent company (TribCo) is in bankruptcy allow the Trib to have one of its profitable subsidiaries separately file for bankruptcy?

You don't have to be insolvent to be a chapter 11 debtor.

The Immigrant
07-13-2009, 12:00 PM
Does this give them an opportunity to dump contracts then like the airlines and auto workers have gone through?

MLB would never allow that, so no.

This will be a surgical filing to effect a sale of the team's assets free and clear of the creditors' claims, which is what the buyer is insisting on. They could have done this as a stock sale, which would have allowed the Trib to keep the Cubs out of bankruptcy altogether, but my guess is that there are tax reasons for doing an asset sale instead.

jabrch
07-13-2009, 12:25 PM
MLB would never allow that, so no.

This will be a surgical filing to effect a sale of the team's assets free and clear of the creditors' claims, which is what the buyer is insisting on. They could have done this as a stock sale, which would have allowed the Trib to keep the Cubs out of bankruptcy altogether, but my guess is that there are tax reasons for doing an asset sale instead.

Player contracts - no. The CBA doesn't allow for that. However, they may be able to get out of non-player related (facilities? Support? etc.) debt and contracts.

thomas35forever
07-13-2009, 12:52 PM
If that doesn't tell you the state of the Tribune Company, I don't know what will.

jabrch
07-13-2009, 12:56 PM
If that doesn't tell you the state of the Tribune Company, I don't know what will.

Their balance sheet and income statements after the Cubs are taken off. THAT will tell a story.

The Immigrant
07-13-2009, 12:57 PM
Player contracts - no. The CBA doesn't allow for that. However, they may be able to get out of non-player related (facilities? Support? etc.) debt and contracts.

That's generally correct. The debt will remain with the bankruptcy estate and the assets will be sold without encumbrance by the existing liens (although my understanding is that there aren't any of significance, since the bank debt is unsecured) and unsecured claims. The "new" Cubs won't be liable for any of the existing debt. Non-player contracts and leases are a trickier issue because (i) the termination damages would dilute the recoveries for the existing lenders, who are thus likely to oppose any attempts to terminate, and (ii) seeking to terminate them in bankruptcy would prolong and complicate the bankruptcy proceeding, which makes it much less likely that MLB would consent to the sale. My guess is that the buyer will be required to take all existing contracts without modification.

Remember, MLB still has to consent to the sale for it to close. My guess is that they are not big fans of the bankruptcy route.

jabrch
07-13-2009, 01:39 PM
Remember, MLB still has to consent to the sale for it to close. My guess is that they are not big fans of the bankruptcy route.

Good point.

chisoxfanatic
07-13-2009, 02:11 PM
Do the other owners in MLB have a vote before any sale can be complete? If so, then wouldn't it be in JR's best interest to vote against it?

dickallen15
07-13-2009, 02:23 PM
I heard the potential filing is to ensure the Cubs aren't tied up in any of the Tribune Co.'s issues, thus making it more attractive of a deal for MLB, and giving owners more reason to approve the deal.

ewokpelts
07-13-2009, 02:27 PM
Somewhere out there, Hangar18 is celebrating.

Maybe somebody who understands bankruptcy laws can explain this to me. As far as I have ever heard, the Cubs were a money making machine for the Tribune Company. If that's the case how can the Cubs file for bankruptcy if they are profitable and aren't themselves bankrupt? Does the fact that the Cubs parent company (TribCo) is in bankruptcy allow the Trib to have one of its profitable subsidiaries separately file for bankruptcy?no teal needed. Hangar is LAUGHING AT THIS ......

sides, why dont you ask him? He still posts here and there

dickallen15
07-13-2009, 02:31 PM
Somewhere out there, Hangar18 is celebrating.

Maybe somebody who understands bankruptcy laws can explain this to me. As far as I have ever heard, the Cubs were a money making machine for the Tribune Company. If that's the case how can the Cubs file for bankruptcy if they are profitable and aren't themselves bankrupt? Does the fact that the Cubs parent company (TribCo) is in bankruptcy allow the Trib to have one of its profitable subsidiaries separately file for bankruptcy?

You don't have to be insolvent to file for bankrupcy.

Iwritecode
07-13-2009, 02:37 PM
no teal needed. Hangar is LAUGHING AT THIS ......

sides, why dont you ask him? He still posts here and there

Much more there than here though...

forrestg
07-13-2009, 03:01 PM
If the tribune is in that bad of shape they should just have to claim bankruptcy. Their creditors should now be owed wriglet et al. THe trib should be shut down and since the Cubs is a valuable asset. I would refinance everything through a public offering. So all those stupid CUbs fans could buy so many shares of Cubs stock. Making the Cubs a publically owned ball team like the Packers. I'm sure the CUbs will need a board of owners and a general manager present employed individuals need not apply. So instead of having some rich individuals own the CUbs it will be owned by those fans who would mortgage their families so they could see one lame game at Wrigley. Which Ichiro summed up best. "Wrigley is like some of the old ball parks in Japan which smell of rotting garbage.

1908<2005
07-13-2009, 07:32 PM
Chapter 11 is debt reorganization. It doesn't mean they're out of money.

Hitmen77
07-13-2009, 09:07 PM
You don't have to be insolvent to file for bankrupcy.

Thanks for clarifying.

Nonetheless, I suggest that if they file for Ch. 11, the Cubs should wear this patch on their uniform sleeves for the rest of the season: :redneck

http://tbn2.google.com/images?q=tbn:0n9ywrvBuEKiPM:http://www.lookatmeshirts.com/uploadedfiles/real/20080918091220_bankrupt_b.jpg (http://www.lookatmeshirts.com/uploadedfiles/real/20080918091220_bankrupt_b.jpg)

Moses_Scurry
07-13-2009, 09:28 PM
So what would hypothetically have to happen for the cubs to disappear forever? Is it possible? Are there any outlandish scenarios that have even a sliver of a chance? What happens if they just can't get the sale done, and it drags on for 2-3 more years?

UofCSoxFan
07-13-2009, 10:44 PM
Cubs aren't going anywhere, although I would speculate that filing for bankruptcy would greatly hinder the ability of their GM.

If the Cubs, while in bankruptcy are subject to the same rules as other Ch. 11 filers (and I don't know why they wouldn't) a bankruptcy judge would likely have to approve any player signing or any trade (especially those that add to payroll). The GM likely would have to put together a "business case" for his actions too (and the fact that many of these deals are done fairly quickly, especially around the trade deadline, this could be a complete nightmare for Hendry.

Hell, even expenses to scout a player in a high school in Florida would have to be documented and approved. Again, if people thought the Cubs were handcuffed by the ownership deal, I think this could stagnate them 10 fold. Of course, the multiple year deals with no trade clauses to players with declining skill sets probably have screwed the Cubs enough as it is.

I truly believe that if the Cubs don't win in the next couple years they won't in dire straights for the next decade.

DrCrawdad
07-14-2009, 12:21 AM
The Chicago Cubbies, a morally and championshipally (:scratch:) bankrupt organization.

tebman
07-14-2009, 09:13 AM
This is all a legal contrivance so that the Tribune can sell the Cubs more quickly, shameless as it is. What amazes me is the buyer's willingness to commit almost $900 million to this unwieldy circus. How on God's green earth is he ever going to make that money back? Besides the problematic cash flow of an MLB team, he's going to have to deal with hundreds of millions of dollars in ballpark repairs and/or new construction.

The buyers have apparently been hypnotized by the Tribune's persuasive skills. Obviously, as Lord Vader said, I don't fully appreciate the power of the dark side.


Oh, what a tangled web we weave
When first we practise to deceive!
-- Sir Walter Scott

Railsplitter
07-14-2009, 11:50 AM
Makes sense, their fans are mentally bankrupt.:redneck

I would have said intellectually bankrupt, but you're close enough!

forrestg
07-14-2009, 12:44 PM
The Cubs are bankrupt. There players are redrafted then after going to their new teams. Wrigley field like old Yankee stadium stays open for people to visit. It can be a national museum. However; the difference being that old Yankee stadium can remain a celebration of the Yankees winning tradition since its beginning. Wrigley can celebrate the other teams in mlb baseball that were not so lucky or a team that epitomizes the losing team's tradition.

Hitmen77
10-12-2009, 03:01 PM
UPDATE:

The Cubs officially file for bankruptcy today. Is that why today is a federal holiday? :redneck

http://www.chicagotribune.com/business/chi-biz-chicago-cubs-bankruptcy-oct12,0,2182633.story

MARTINMVP
10-13-2009, 09:25 AM
It's only a formality to advance the purchase process to Ricketts. The hearing is this afternoon, and they could be out of bankruptcy by the end of the day tomorrow.

slavko
10-14-2009, 10:44 PM
Is it unreasonable to think that someone who provoded goods and/or services and is owed money is not going to get it?

The Immigrant
10-15-2009, 08:36 AM
Is it unreasonable to think that someone who provoded goods and/or services and is owed money is not going to get it?

Yes, because there's no chance of that happening.

white sox bill
10-15-2009, 04:05 PM
Is it unreasonable to think that someone who provoded goods and/or services and is owed money is not going to get it?
Hell I'm in the gym business and without checking with my book keeper, if I added up all the bankruptcies that have been filed against me, I'm quite sure it would be close to $100K.

Not to hijack, and I realize in the Sports biz, that's chump change. Another reason to detest that organization.