A process was begun during the 2007 Major League Baseball (MLB) season when the new owner of the Chicago Tribune announced he would be placing the Chicago Cubs professional baseball team on the market for sale. The financially troubled Tribune had recently been sold to Sam Zell, a billionaire investor. The Tribune had purchased Chicago’s lovable yet frustration riddled MLB icon in 1981 for $20.5 million. Today, a group of potential owners have either submitted applications to MLB or are expected to do so in the very near future. This application is not just to purchase the Cubs; it is an application to join one of the most exclusive clubs in North America.

There are 30 members and they have the privilege of choosing who gets to join their group. Now these people (primarily people, there are four corporate entities listed as principle owners) are some of the richest in the world, and even though baseball seems to continually get its nose bloodied by one scandal after another, they are getting richer as owners of these teams. Of these owners, George Steinbrenner has owned his team the longest, buying the New York Yankees in 1973 for $8.7 million. According to Forbes Magazine, the Yankees current value is estimated at $1.2 billion. Here is the Forbes listing of MLB teams by their estimated value in April 2007, each team’s latest sale price, and the change in value since the latest purchase:

Rank…….Team………………Current…..Original…..Change<
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…………………………..…….($mil)……($mil)…….($mil)

1…New York Yankees……….1,200…………8.7…...1,191.3

2…New York Mets…………….736……….391……….345

3…Boston Red Sox……...……..724……….700………..24

4…Los Angeles Dodgers…..…..632……….371………261

5…Chicago Cubs……..………..592………..20.5……..571.5

6…St. Louis Cardinals…..……..460……….150*……..310

7…San Francisco Giants…….... 459……….100………359

8…Atlanta Braves……..……….458……….270**……188

9…Philadelphia Phillies……..…457…………30………427

Forbes estimates that in 2006, Major League Baseball owners enjoyed a 15% increase in team value (a 6% increase over 2005). This trend is expected to continue as new stadiums come on line, owners continue to sale television rights to cable networks, and fan interest continues to not only remain high, but grow. A large part of this reinvigoration can be attributed to the limited revenue sharing or "luxury tax" the owners imposed on themselves. Suddenly the smaller market teams could turn a profit and the values of their franchises have risen. What would happen if the league raised the level of revenue sharing?

It’s quite a change from just three years ago when MLB owned the Montreal Expos and was struggling to find a buyer for the franchise.

So here we are, exactly 100 years since the Chicago Cubs last won the World Series and they are on the market. A group of potential buyers have formed up. Who are these people?

Without a doubt, the highest profile suitor is the outspoken owner of the NBA’s Dallas Mavericks, Mark Cuban. Cuban, a billionaire who made his money in the high-tech world, is an avid sports fan and very interested.

Another high profile individual and a past NBA franchise owner, Chicago native Jerry Coangelo (Phoenix Suns) is in the running. Coangelo has already been a member of the MLB owners club as the lead partner in a group that was awarded the Arizona Diamondback franchise in 1995 (his interest in the Diamondbacks has since been sold to his original partners in 2004).

The Ricketts family, which founded discount broker TD Ameritrade Holding Corp., has been said to be interested with Thomas Ricketts, heir to a family fortune (around $2.3 billion) assuming the lead role.

John Canning who heads a private equity firm (Madison Dearborn Partners) and who happens to be a part-owner in the Milwaukee Brewers (most likely a close friend of Commissioner Bud Selig).

There is also said to be a partnership between restaurateur Larry Levy and Chicago business owner Craig Duchossois ready to put together an application.

There are several other possible groups partnering up to bid on the Cubs.

Bud Selig  Does this man and his cronies like you?

This process is expected to heat up in January, 2008, and may continue deep into the new year. The Forbes estimate of value for the Cubbies in spring, 2007, was $592 million so once bidding is ready to commence, it should probably start at $600 million if the Tribune’s interest in super television station WGN and Comcast SportsNet are not included in the deal or $900 million if those interests are in.

A sidelight of interest: This procedure may spell the demise of the Cubs home, Wrigley Field, but this remains to be seen. Whoever is the new owner will have a lot to say about that.

It should be quite a fray once the top contenders have made it through MLB’s screening process. I have to wonder whether Mark Cuban will even be allowed to bid on the Cubs. The MLB owners are said to have a problem with him joining their ranks. Yes, he is outspoken and unpredictable, and just maybe this is exactly what the good old boys of baseball need in their club.

Resources:

http://en.wikipedia.org/wiki/List_of_Major_Le
ague_Baseball_principal_owners

http://www.forbes.com/2007/04/19/baseball-tea
m-valuations-07mlb-cz_kb_0419baseballintro.htmla>

http://www.forbes.com/lists/2007/33/07mlb_The
-Business-Of-Baseball_Rank.html