Monday, May 18, 2009

Update on Ownership

Tom Ricketts is close to lining up three banks to arrange the $450 million financing necessary to complete his acquisition of the team which would help him in the long run to balance the Cubs.

JPMorgan Chase, Citigroup and Bank of America are ready to committ and will do so by the end of the week. That will help Tom Rickett to submit the 900 million to the court. The court will then take 30-45 days to process the offer, then the closing can come by July.

MLB can wait untill the next owners meeting to tell the news in August to tell the news or make up a date to tell the news.

A source said, "The deal comes at a steep cost for Ricketts, a scion of the Ameritrade fortune who is putting up $450 million of equity to buy the team, Wrigley Field and the club’s 25 percent interest in Comcast SportsNet Chicago. Sources said the banking fees are substantial, and the banks are still negotiating a minimum for what the interest rate would be."

Ricketts has been trying to sell preferred notes in the team to raise another $50 million.

So it sounds like the ownership will get done by early July, enough time for Jim Hendry to make a trade to help the Cubs win.

I will keep you posted on the ownership when it comes around.

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