FitzSimons Appears Cool to Sale of Cubs
The Cubs-for-sale speculation has existed as early as October of last year. A couple of weeks ago, the CEO of the Tribune Co.'s 5th largest shareholder suggested that the company should sell the Cubs. Now, on Thursday, the Wall Street Journal devoted an article on the front page of its "Money and Investing" section on the possibility that the Tribune Co. could sell some of its non-core assets like the Cubs. (Hat tip: Ivy Chat.)
At this point, Tribune Co. Chairman and CEO Dennis FitzSimons is talking like he is not interested:
Mr. FitzSimons says he is reluctant to dump any of them, especially considering the probable tax bite a sale would entail."To sell at the bottom, when potential buyers aren't necessarily willing to pay a premium price that would make up for the tax hit, wouldn't be wise," he says.
The major cash infusion that a sale of the Cubs would bring is also what would cause the major tax hit:
While the club hasn't won a World Series since 1908, its legendary Wrigley Field home is packed for most games. Estimates put the team's value at around $500 million. Tribune bought the Cubs in 1981 for $21 million.
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Rick Morrissey: Sell the Cubs
The Tribune's Rick Morrissey says that the Tribune Co. should sell the Cubs to avoid the conflict of interest presented in having a newspaper company own a sports team. (Hat tip: 1060west.)
FitzSimons comments on WSJ article
Dennis FitzSimons said the following to employees in an internal message regarding the WSJ story: "Given the reporter's questions, it is what we expected. Considering the overall industry environment, the recent sale of Knight Ridder and the price of TRB shares, a more balanced story was not in the cards." (Hat tip: PaidContent.org.)