Wednesday, May 6, 2009

Sale of Cubs Delayed

According to the Chicago Tribune, the Cubs sale will not be completed before the owners meeting on May 20-21.

Despite good intentions on both sides, the transaction will not completed by the owners' meeting, said sources familiar with the negotiations. But a second blown deadline is not an indication that the deal is in trouble, sources said. One person who asked not be identified said the sale is "proceeding slowly but proceeding."

"Sources blamed the slow pace of negotiations on several factors. The double whammy of a recession and a financial-sector meltdown has made it difficult for the Ricketts to secure financing. The family raised $400 million for the deal by selling personal stock holdings and planned to borrow the rest."

Also according to the Tribune, "both sides are reluctant to put a timetable on completing the deal." Baseball owners are not scheduled to meet again until August.

I will keep you posted.

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