Originally Posted by roylestillman
I think this is an indication of what a mess Cub finances are right now. Their payroll is down to $92 million, 23rd in MLB. The punch line is only $77 million of that is for people currently on their roster. I can't believe the revenue projections (as developed by Crane Kenney) to pay for both the renovation and talent in the coming years. Also if anybody thinks that $300 million budget is going to hold up once they start tearing up that 100 year old pile of steel and concrete that's been sitting out in Chicago winters, they're dreaming.
The awkward Thanksgiving dinner issue in all of this is just think of all the the TD Ameritrade stock they had to sell in 2009 to come up with the $150 million or so for the down payment on the deal. 2009. What do you think that stock is worth now?
They don't have the cash flow to continue operating. Tom Ricketts borrowed $450 million from various banks to buy the team. The other $400 million came from his old man. Tom thought it would be cool and fun to own the Cubs. and why not? He thought he was buying an awesome product that sells out every game. Of course, he found out quick it's not all fine and dandy. He also probably thought since it was the Cubs, he'd be able to get a stadium deal from the city and state. That hasn't happened either. It costs eight figures just to maintain and operate Wrigley Field each year. He also didn't take into account when you take over something, you inherient contracts and situations that aren't quite ideal. He can fight with the roof top owners all he wants. The fact remains, as long as their signed contract is valid, the roof top owners can sue the Cubs if they feel views are obstructed. He can certainly do what he wants after the contract is expired, but it will be a while. The TV and radio deal with WGN was perfect for the Tribune Company. It's not so great now, which is why they are looking to leave WGN.
Yes, the value of the team has gone up in the past five years. However, you don't get that money unless you sell the team. And, since the team is in huge debt, you won't be seeing much of that money. It also hasn't helped the so called master rebuild plan isn't going as well as the Cubbie Loving media wants you to believe. Hell, all I heard last year is what the Sox plan was, etc. Well, the Sox are already ahead of the Cubs, even though the wonder kid Theo is not running things.