2016-06-09T09:00:00.224-05:00The Dead Cardinals SketchThe cast:MR. HRABOSKYBROADCASTER SHANNONThe sketch:A customer enters a pet shop.Mr. Hrabosky: 'Ello, I wish to register a complaint.(Broadcaster Shannon does not respond.)Mr. Hrabosky: 'Ello, Miss?Broadcaster Shannon: What do you mean "miss"?Mr. Hrabosky: I'm sorry, I have a cold. I wish to make a complaint!Broadcaster Shannon: We're closin' for lunch.Mr. Hrabosky: Never mind that, my lad. I wish to complain about this baseball team what I watched not half an hour ago from this very stadium.Broadcaster Shannon: Oh yes, the, uh, the Cardinal Red...What's, uh...What's wrong with it?Mr. Hrabosky: I'll tell you what's wrong with it, my lad. 'Ere dead, that's what's wrong with it!Broadcaster Shannon: No, no, 'Ere uh,...ere resting.Mr. Hrabosky: Look, matey, I know a dead team when I see one, and I'm looking at one right now.Broadcaster Shannon: No no ere not dead, ere, ere restin'! Remarkable team, the Cardinal Red, idn'it, ay? Beautiful plumage!Mr. Hrabosky: The plumage don't enter into it. It's stone dead.Broadcaster Shannon: Nononono, no, no! 'Ere resting!Mr. Hrabosky: All right then, if ere's restin', I'll wake him up! (shouting at the batting cage) 'Ello, Mister Grichuk! I've got a lovely fresh cuttle fish for you if you show...(Broadcaster Shannon hits the cage)Broadcaster Shannon: There, he moved!Mr. Hrabosky: No, he didn't, that was you hitting the cage!Broadcaster Shannon: I never!!Mr. Hrabosky: Yes, you did!Broadcaster Shannon: I never, never did anything...Mr. Hrabosky: (yelling and hitting the cage repeatedly) 'ELLO YADI!!!!! Testing! Testing! Testing! Testing! This is your nine o'clock alarm call!(Takes team out of the cage and thumps it on the counter. Throws it up in the air and watches it plummet to the floor.)Mr. Hrabosky: Now that's what I call a dead team.Broadcaster Shannon: No, no.....No, ere stunned!Mr. Hrabosky: STUNNED?!?Broadcaster Shannon: Yeah! You stunned him, just as he was wakin' up! Cardinal Reds stun easily, major.Mr. Hrabosky: Um...now look...now look, mate, I've definitely 'ad enough of this. That team is definitely deceased, and when I watched it not 'alf an hour ago, you assured me that its total lack of movement was due to it bein' tired and shagged out following a prolonged energy burst from Kolten Wong being sent down.Broadcaster Shannon: Well, he's...he's, ah...probably pining for the fjords.Mr. Hrabosky: PININ' for the FJORDS?!?!?!? What kind of talk is that? Look, why did they fall flat on their back the moment they got home?Broadcaster Shannon: The Cardinal Red prefers keepin' on it's back! Remarkable team, id'nit, squire? Lovely plumage!Mr. Hrabosky: Look, I took the liberty of examining that team when I got it home, and I discovered the only reason that it had been sitting on its perch in First Place was that it had been NAILED there.(pause)Broadcaster Shannon: Well, o'course it was nailed there! If I hadn't nailed that team down, it would have nuzzled up to those bars, bent 'em apart with its bat, and VOOM! Feeweeweewee!Mr. Hrabosky: "VOOM"?!? Mate, this team wouldn't "voom" if you put four million volts through it! 'Ere bleedin' demised!Broadcaster Shannon: No no! 'Ere pining!Mr. Hrabosky: Ere not pinin'! Ere passed on! This team is no more! He has ceased to be! Ere expired and gone to meet 'is maker! Ere's a stiff! Bereft of life, 'Ere rests in peace! If you hadn't nailed 'em to the perch 'ere'd be pushing up the daisies! 'Is metabolic processes are now 'istory! Ere off the twig! Ere kicked the bucket, Ere shuffled off 'is mortal coil, run down the curtain and joined the bleedin' choir invisible!! THIS IS AN EX-TEAM!!(pause)Broadcaster Shannon: Well, I'd better replace it, then. (He takes a quick peek behind the counter) Sorry squire, I've had a look 'round the back of the shop, and uh, we're right out of teams.Mr. Hrabosky: I see. I see, I get the picture.Broadcaster Shannon: I got a Cub.(pause)Mr. Hrabosky: Pray, does it play the Cardinal Way?Broadcaster Shannon: Nnnnot really.Mr. Hrabosky: WELL IT'S HARDLY A BLOODY REPLACEMENT, IS IT?!!???!!?Broadcast[...]
2015-10-07T08:41:00.998-05:00"And it's been a long way, but we're here."
2014-01-30T08:00:06.929-06:00Many of you know that old tapes with sporting events on them are stored in a basement and never get thrown away. Many of you also know that the last VHS tape player in the 60025 zip code is located in this house. What many of you don't know is that there's a DVD burner attached to said VHS tape player. The burner is great for transferring wedding and bar mitzvah videos to a digital format.
2013-11-07T21:39:09.220-06:00No need to spend a lot of time explaining the lack of long form Cubs talk from this blog (let’s assume you spent a modicum of time watching the last season). So, what’s got this site active again? An article in Crain’s Chicago Business by Danny Ecker.
2013-11-07T21:40:49.628-06:00This is not a good time to be a rooftop owner. It’s not only that they have they been semi-vacant the past few years as the Cubs have been a painful on-field product to watch. They’ve also been in a private battle with Cubs management on the future of their business model.Now, with the announcement of new, and very reasonable, plans to renovate Wrigley Field, the Rooftoppers went public with their argument with a press conference. At that event, they not only threatened to sue the Cubs to protect their ability profit from a product they don’t own, but also insulted Cubs ownership. Cubbie Bear owner George Loukas said he was once Ricketts' landlord but would've jacked up the rent if he knew he'd eventually be Cubs owner. They also kicked a Cubs PR representative out of the meeting. One guesses they knew how well their position would stand to criticism. Or maybe they don’t.The opinion here is that the Rooftoppers don’t have a leg to stand on. They are freeloaders on the Cubs’ product. Well, they were freeloaders until they signed a contract with the Cubs that gives 17% of revenue to the Cubs in exchange for a business arrangement. The details of this contract were not publicly available.Until yesterday.Phil Rosenthal’s report in the Chicago Tribune suggests he’s viewed at least a portion of that contract. "...the contract allows that "any expansion of Wrigley Field approved by governmental authorities shall not be a violation" of the deal, which means if Mayor Rahm Emanuel gets behind the Ricketts, look out.…the contract calls for the Cubs to help hype them in a variety of ways, advancing the argument that the rooftop clubs are part of the appeal of Wrigley.There's a requirement that "WGN-TV will show and comment upon the Rooftops' facilities during the broadcasts of Cubs games and the Cubs will request other Cubs television broadcasting partners to do the same." There's also a mandate for the team to "include a discussion about the Rooftops on their tour of Wrigley Field" and to include stories positive about the Rooftops in The Vine Line," the team's publication."Be sure of one thing: If Rahm can close a deal to get $300 million spent on a Chicago landmark and $-0- comes from the city, he’s going to be behind it.Rosenthal makes one other point:"Rooftop owners talk about the taxes they pay, the people they employ, the money they've invested to make their businesses safe and viable, the character they add to the neighborhood."Actually, they really haven’t made this full argument. They’ve spent most of their time talking about the character aspect.That’s the wrong argument to make. It makes the Rooftoppers look self-important and unsympathetic.But there is a way they can turn this around. That way is to focus on the contract and the money they’ve spent.The angle they need to take goes like this:Yes, we are freeloaders. Or we were. In 2004, we signed a contract that made us partners with the Cubs. Since that time, knowing we had a 20 year deal in place, we spent millions of dollars of our private money to improve these properties. We’ve hired a lot of people. We’ve paid a lot of taxes. And we’ve give the Cubs a lot of money. All we are asking for is this: Give us the chance to complete the contract we signed in good faith. It would set a terrible precedent for Mayor Emanuel to back the interests of billionaires from Nebraska while ignoring small business owners, who have been in Chicago far longer than the Ricketts, and who never once asked for a dime of government money.We pledge to work with the Cubs to increase their revenues they generate from us. We believe that by the end of the contract the Cubs will recognize the value we add to their brand, both in dollars and aesthetics.Please, Mr. Mayor. Don’t confirm our worst fears that your governme[...]
2013-01-21T21:11:00.387-06:00The Cubs took the opportunity at last weekend's Cubs convention to make some real news. This is news that’s not only good for Cubs fans, but it's also good for taxpayers. Rather a shocking but welcome development that's totally unexpected from the Ricketts family. But also one that makes sense for a lot of reasons.If you recall, the Ricketts had floated a plan called "Sales Tax Increment Financing," or STIF. The idea was this: For every ticket sold, the Cubs are required to add on an "Amusement Tax" of 12% of the face value of each ticket. This money is given to the city (9%) and the county (3%). The Cubs collect a substantial amount of tax for the city and county. The most recent numbers I could find were a total of $16.1 million collected in 2009. Notice the word "collected" and not "paid." That's because the Cubs don't really pay the tax, you and I do. Just look at this ticket. See the advertised price is $90? The Cubs add on the $10.80 to the face. The Cubs get their full $90. Now, the amount of tax can certainly affect demand for tickets, but demand to see the Cubs had been pretty consistent the last few years. What a STIF does is this: Say the Cubs are currently collecting $16.1 million in tax on ticket sales of $134.2 million. If the Cubs raise prices by 10%, then the tax collected should rise to $17.7 million, an increase of $1.6 million. The STIF plan diverts the $1.6 million from the city and county back to the Cubs. In short, the Cubs want to raise prices but freeze the amount of tax they collect until such time as the stadium renovations are paid for. It's just additional revenue to the team that they don’t pay corporate income tax on because it's dedicated to payment of debt. On Saturday, Tom Ricketts and Crane Kenney said this plan has been scrapped and they plan to pay for renovations to Wrigley out of the Ricketts family pockets. This is great news, but it does get one wondering why they gave up? Reason #1 is that they City of Chicago and Cook County really don't have the money to give the Ricketts to boost the value of their private company. In fact, the city and county really need more tax revenue from ticket sales and any freeze hurts future budgets. The chance of this actually getting approved and funded was pretty low. But reason #2 is this: allowfullscreen="allowfullscreen" frameborder="0" height="315" src="http://www.youtube.com/embed/d68b3Me6WtQ?list=PL_iHHuALX8YI9YUVeaHBZbK2c5wS0qS5P" width="560"> Joe Ricketts, patriarch of the Ricketts family and source of the family wealth, decided to drop $10 million of his own money on political commercials criticizing President Obama for spending too much money. Kinda hard to blast the president for that and seek his defeat while your kids go ask Obama's former Chief of Staff, current Chicago Mayor Rahm Emanuel, for more government spending. Kinda pissed Rahm off, too. So, after much soul searching, the Ricketts released they better go another way. And they did. They went the right way. What the Cubs want now is to spend $300 million of their own money over five years and upgrade Wrigley Field. They want to build a hotel next door. And they want some help from the City. But they no longer want any money. What they want is pretty simple. They want to be able to make a shit load of money by putting up a shit load of signs, ribbon boards, jumbotrons, more night games, and anything else they can think of to make the money they will need to pay for renovations. The city should let them do this instantly. The Cubs are only being asked to be treated like what they are: A private business. The problem is, right now, the Cubs are a private business with major public restrictions. The city tells them how many night games they can have, how many signs they can have, and how they can change the structure of the ballpark. This limits the profit potential of the team. The opinion here is that they city is full[...]
2012-06-26T18:17:38.158-05:00Anthony Rizzo is here. Only 172 days ago, no one in Chicago knew his name. Today, you'd think it he was the next Kerry Wood. Or Mark Prior. Or Kevin Orie. Or Mike Harkey. Or... you get the point.
2012-06-25T09:42:50.258-05:00Yes, it is alive. It's been about seven months since this doorstep to the Internet was darkened with my scribblings. With any luck, it won't be that long again. (Then again, you may be saying, "Oh, shit. Chuck is back? Yellon caused this, didn't he!" My apologies to those of you.)This place has been dark for a couple of reasons. First, the allure of Twitter has enabled the thoughts and opinions of this site to get out there for all to see and to be recorded for posterity at the Library of Congress. Writing thoughts 140 characters at a time does fit the week writing style found herein.Second, there really hasn't been much to talk about with the Cubs. For 2012, the on-field performance, at least in terms of record, is meaningless. Theo Epstein and Jed Hoyer are just beginning the process of tearing apart the clusterfuck that Jim Hendry and Andy MacPhail left behind. This is not a simple two-year re-build of the major league roster. This is a total gut-and-rehab of the entire organization. From scouting, to minor league training, to even such things like the EAMUS CATULI sign, the Chicago National League Ballclub is finally getting the enema it's needed since Dallas Green's foundation was allowed to collapse.These changes are incremental and gradual. They will occur over long period of time and only become visible at the major league level after several years. Given that, the ability to discuss on a daily basis the organization's progress is not only very hard due to lack of information, but it's pretty damn boring. And if you want boring daily writing about the Cubs, there are plenty other places to get that.So, how are Theo Epstein and Jed Hoyer doing so far? Well, it's nearly impossible to tell. They only recently begun to add players to the organization who will be on the roster two years from now. Other than perhaps finally being able to see Anthony Rizzo in person and seeing if Jeff Samardzija and Starlin Castro are long term solutions or trade bait, there really is little reason to watch the on-field product.All the fun stuff this year has come from the business side. And by fun, it's always the Ricketts themselves that provide the hilarity.The more and more you watch these people try to run a baseball team, the more of a disaster they show themselves to be.First, they tried to do Gandalf and the Dwarves and slowly increase the cost of the Wrigley rehab. Using Crain's as their mouthpiece, we were told back in 2011 that the total cost of rehab would be $200 million. Then, some time last summer, it nudged up to $300 million. Come December? $400 million. We got to opening day 2012 and Crain's had it at $500 million. Just amazing that the cost could go up by 150% in just a year. Inflation is a bitch. No wonder Joe Ricketts wants new leadership in Washington.Which leads us to the next bit of hilarity. Joe Ricketts has clearly wanted to be a player in national politics for a long time. Eldest son Pete ran for US Senate in Nebraska a few years ago. Joe has had his PAC, Taxpayers Against Earmarks, for quite a while. The PAC changed its name to Ending Spending in 2011. The goal of this PAC? No more government spending.Joe must not be a chess player because he didn't bother to look a few moves ahead. See, the Wrigley Rehab project that requires $500 million wants to use taxpayer dollars to support the project - the exact kind of dollars Joe doesn't want spent.Moreover, the guys who would approve this subsidy go by the names of Rahm Emanuel and Pat Quinn. Both these guys have a (D) that goes after their names. Joe clearly didn't think about the ramifications on his request for tax money while he was, at the same time, going full bore to defeat Rahm and Pat's clos[...]
2011-11-18T14:14:35.116-06:00It's been nearly a flawless offseason for the Cubs. Theo Epstein is here and he's brought with him a cavalcade of management stars. Jed Hoyer is the GM to do the dirty work of dealing with the media and the 29 other baseball GMs every day. Jason McLeod will attempt to remove the Hendry from Oneri Fleita and Tim Wilken (aside: what are they still doing here? Weren't we told they were too loyal to Hendry to stay if he left?). And new manager Dale Sveum will babysit the clubhouse as everyone not named Garza, Castro and Cashner consults out of town real estate agents.
Mayor Rahm Emanuel is dumping all three city members of the Illinois Sports Facilities Authority — including former Mayor Richard M. Daley’s nephew — in a housecleaning that could set the stage to renegotiate the White Sox lease, modify its restaurant deal and, possibly, have the state acquire and renovate Wrigley Field.Nice to see more of the Daley cronyism fading away. But, how likely is more money for Wrigley Field? The article is pretty silent. It focuses mostly on the White Sox sweetheart lease, a lease that, according to the article, "requires the Sox to pay just $1.5 million in annual rent."
As a first step, none of the new members will accept the perks that come with the job: discounted tickets; free food and beverages; special parking privileges and access to skyboxes for non-charity events.
(Emanuel's) board members could attempt to revive a failed 2008 plan to have the state acquire and renovate Wrigley Field. Emanuel wants to find a way to save 97-year-old Wrigley without forfeiting 35 years' worth of amusement tax growth. The mayor has called that Cubs' plan a "non-starter."So, there really is no plan or structure currently being floated, but Crain's sees turnover at ISFA as a sign of good things for the Cubs.
2011-10-28T09:57:20.069-05:00IvyChat has come across a recording of Theo Epstein's exit interview in Boston:
2011-10-28T09:44:44.353-05:00Of all the baseball parks, in all the towns, in all the world, he walks into ours. About time.
2011-10-12T08:00:17.677-05:00At about 6 PM Chicago time last night, all hell broke loose on Twitter (you can follow me there @ivychat) with the cross posting of Steve Buckley's Boston Herald article:Two baseball sources have confirmed that Theo Epstein is on the cusp of leaving his job as general manager of the Red Sox to accept a position with the Chicago Cubs that is believed to include powers greater than he has in Boston, with an announcement expected to be made "within the next 24 to 48 hours."Now, this isn't a done deal yet. There's still the possibility that Tom Ricketts will go Full McCaskey and make this McGinnisGate II. But if they don't, this signing will go down as the biggest acquisition for the Cubs franchise since Dallas Green acquired Rick Sutcliffe. That move by Green told the world that the Cubs weren't screwing around anymore.This move is a little different. If the Ricketts get Theo, it's because they can't afford to screw around anymore. The days of Jim Hendry's lack of organizational development, Crane Kenney's douchbaggery, and Mike Quade's sheer cluelessness are over.Empty seats always bring change. In 2006, empty seats brought Lou Piniella, Ted Lilly, Jason Marquis, and Alfonso Soriano. In 2011, the empty seats brought the Ricketts something they didn't expect.Fear.When they bought the team, the Ricketts believed they had a cash cow. They believed as Tom told his dad: They sell out every game, win or lose. After 2 seasons of ownership and having a winning record for 48 hours of that time, the sellouts were over.The Ricketts, who want, more than anything else, to be multi-generational owners, discovered they had more risks than they realized. They need to repay debt and they need another $300 million to rebuild their crumbling, outdated physical plant known as Wrigley Field.With attendance down, cash flow fell and debt became harder to service. Furthermore, with fans avoiding the park, it would be impossible to get new Mayor Rahm Emanuel to sign off on a tax grab. Why give $300 million in a down economy with record city deficits to support a venue, owned by billionaires, that no one is using?They had to do something.Were this 2006, the answer would be easy. Albert Pujols in left, Prince Fielder at first and CC Sabathia and CJ Wilson on the mound. That's not possible now. What is?A face of a winner. This face.[...]
2011-08-19T10:44:35.596-05:00(image) In what was the Ricketts' family's best move since refinancing some of their bank debt, Jim Hendry has been dismissed as General Manager of the Chicago Cubs.
2011-08-18T14:27:37.046-05:00Crain's runs with a new story on the Ricketts latest attempts to get public financing to fix Wrigley Field.
2011-08-08T13:34:28.350-05:00The conventional wisdom on the Cubs have changed over the past two weeks. The Cubs inability and/or unwillingness to trade even tradable guys (Sean Marshall, Marlon Byrd, Carlos Pena) has certainly flipped a switch amongst even the most forgiving of fans and media types (save Gordon Wittenmyer).Tonight, Cubs Insider on ChicagoNow (HT: Dave Kaplan) talks about was the inaction due to Jim Hendry's hands being tied? Cubs Insider quotes Bruce Levine, mouthpiece for Jim Hendry:(T)he Cubs need some direction from above Jim Hendry. Either make a commitment Jim or move on to next management group and let them come up with game plan. Right now Hendry and Co. are in the in-between mode, and you're not going to accomplish very much that way.I would not necessarily agree on Carlos Pena and Ramirez. I think again ownership has to identify a direction. If Hendry is coming back for last yer of his contract, he should be extended or let go. It's not fair to him or the organization to hold a team in limbo.Since Levine has a direct line to Hendry, this could mean two things. First, Hendry is making up a story as to why he didn't make a move. "It's the owners who won't let me do anything!"This fits with Hendry's operating methods from the past. Just look at how he's defended himself from the Alfonso Soriano signing. "It's not me, it was all that John McDonough guy that did that! Don't blame me!"Another possibility is that this is true and Tom Ricketts can't decide what to do. Unfortunately, the level of Tom Ricketts management skills is largely unknown. We know that he graduated late from college. We know that his company, Incapital, wasn't terribly successful for a long time.Google also turns up this bit of info from Forbes back in 2002:Tom Ricketts has a great idea for selling bonds to individual investors. So how come he waited so long to sign up clients?Thomas Ricketts is a potent argument against sitting on your hands. The onetime marketmaker in options came up with the idea of using the Internet to aggregate supply and demand for a security most retail investors wouldn't think to buy--corporate bonds. (Only 12% of the $3.7 trillion in corporate bonds is in the hands of individuals.) He helped launch the system in 1996 as a vice president at ABN-Amro. It took him three years get up the gumption to quit and start his own company, Incapital LLC.Ricketts rounded up companies eager to borrow and brought them to brokers, who then sold bonds in blocks as small as $1,000 to investors. Besides tapping new investors, corporations benefited by shaving a point or two off the usual underwriting spread and by offering slightly lower yields than they would have offered on identical issues sold to institutions. Investors liked the system because the bonds were sold at par and at yields that changed daily--and because they could eventually sell them back to brokers at yields comparable to market prices.All good in theory. Trouble was, Ricketts wasted nine precious months during 2000, haggling over a $1 million-plus grubstake from Bank of America Technology Investments for an undisclosed minority share of the company. And while his backers delayed, his old employer played: ABN-Amro's LaSalle Broker Dealer Services was selling $2 billion in bonds on the Net. "To watch the product go on without you as you're getting ready to come back into the market, it's not a comfortable feeling," he says. "There was an opportunity cost there; I just wouldn't be able to quantify it."Try $1 billion worth of business--or more.This is a guy that has a hard time making decisions.There's a reason why this blog supported Don Levin first, then Mark Cuban after Levin got outbid for the new[...]
2011-07-15T09:41:05.941-05:00Man, Carlos Marmol blows a 2 run lead recording only 7 strikes in the 25 pitches he throws and Cub Nation has finally seen enough. Not that the 37-55 record going into last night was enough. Not that ownership has been silent other than platitudes was enough. Nope. What did it was Marmol blowing a save. And Mike Quade's comment after the game didn't help:"Now is not the time or place to be making bold statements about changes." - Mike Quade, Cubs Manager Pro TemporeThe Cubs hashtag in Twitter is alight with people upset and referencing the 2003 NLCS Game 6 similarities and calling for massive change. Even the sycophants at the "Cubs Internet Community" were upset by Quade's comments with the ringleader going so far to say, "Quade and his minor-league coaching staff" are "managing to be liked, not to win."Dan Bernstein, who was snookered by Tom Ricketts two years ago into believing that the new owners knew Jim Hendry was a problem, is now saying that Hendry will be gone at the end of the season. Internal sources from the Cubs front office tell him that Ricketts will be making a change and simply to discount what Ricketts says publicly.The problem here is that a change at the end of the season is far too late. Barry Rozner correctly notes today:(Ricketts allowing Hendry to determine the shape of the 2012 roster with moves that Hendry will make before July 31 — or moves that he’ll choose not to make.Either way, Hendry is putting in place the pieces or removing those he doesn’t believe are necessary.He’s also holding on to players who might have great market value because he believes they will be a big part of 2012 and beyond. He may be right or he may be wrong with those choices, but whatever the choices are, they’ll be Hendry’s.So if Ricketts really has it in mind to make major front-office changes at the end of the season, the changes should have been made already.Not in October, not in September and not even 15 minutes from now. Those changes should be made immediately.So speak now, Mr. Ricketts, or forever hold your GM’s hand through another winter, spring and summer.If changes are made after this season, and if Ricketts fires Hendry then after letting him shape the team now, he’s going to look really foolish and will have some serious explaining to do about why the changes weren’t made in June when the season was obviously over.Barry's close to being exactly right. Yes, Hendry should not be the GM today and certainly not be allowed to make an roster changes that affect the 2012 rosters at any level of the Cubs organization.But, if Ricketts has decided to make a change, the time to do so was last month after the draft was complete. A change at that point gives a new GM the maximum amount of time to build a scouting staff for next year's draft as well as give the new GM as big a lead time as possible on the trade deadline to evaluate what talent exists within the system.It's already past the time to make a change. It should have been done two years ago when the team transferred ownership. The opinion here was that Jim Hendry should have been fired in October 2009 or had his contract extended to really show the Ricketts' confidence in him. Since then, with no extension, Jim Hendry has simply been a lame duck.Cleaning out the Cubs management team from stem to stern wouldn't be "knee herk," it would be well deserved. And already far too late.[...]
2011-06-16T09:14:43.845-05:00Tom Ricketts must have finally had enough of people bitching that he doesn’t have a long term plan for the Cubs and the same people bitching that he should say something about it. So, Tom called an impromptu press conference and promptly admitted that he does have a plan and that it’s the exact plan that led to the 27-40 record the team has posted this year."I have 100 percent confidence in Jim. He's working very hard to do everything he can to get this season back where we want it to be."Just where do you want it to be, Tom? And, while you’ve said, full stop, that you have confidence in Jim Hendry, can you tell us why that confidence is warranted?"And I think Mike (Quade)'s done a great job. Mike's got those guys playing hard. You know they're not giving up, and there's a good spirit in the clubhouse. So those guys' (jobs) are fine."Yeah, Mike's done about as can be expected with the talent Hendry gave him. He’s also kept a tight control on the clubhouse. No issues there."I think we're not going to wear (the "F**k the Goat" shirts) outside. Kind of the language in it, you've got to be careful. But I'm not too worked up about it."If only there was a guy in the clubhouse who could police or even manage the players before they take the field."I've never bought into the [idea that] I should have a baseball guy to watch my baseball guy. And then what do you get? A baseball guy to watch the baseball guy who’s watching the baseball guy? I really haven’t through about an extra baseball guy. I'm not regretting not having an extra baseball guy."While you don't regret having a "extra" guy, 27-40 suggests you might regret not having a good one."Obviously we don't believe it"s a dump."Ah, faith. Wrigley Religion. Seen this many times before. Always annoying."In fact, Wrigley Field is the third largest tourist attraction in the state, generates $600 million for the business in the area. ... It's not a dump."Using economic value to gauge the quality of a physical plant is not the correct comparative. Waste Management, National Waste Services, Flood Brothers, Recycling systems Inc. and a host of other companies combine to create a lot of business for the Chicago area, and far more jobs than the Cubs do. And those companies are literally dumps."That said, we know that it can be improved. We know we've got a lot of work to do to preserve it and improve it for the fans."So, it is a dump. Thanks for clearing that up."There are a couple of factors (in lower attendance) – obviously the economy and obviously the weather. But the most important thing is I’m not worried about the attendance because if we win, we'll be full. And everything we’re doing is to win."Didn't your dad say that you told him that they "sell out every game, win or lose"? Someone’s getting tee’d up by his father for Who You Crappin'!What's becoming more and more apparent about the Ricketts' leadership is that he doesn’t really have a plan for the product on the field. He thought, and sold his family, on the idea that the Cubs were a cash cow that they could buy. They could use the cash flow from an inelastic demand for tickets to pay off the debt they incurred to buy the team over a period of 10 to 15 years, and then the family would have a terrific source of income for generations based in the third largest city in the US that would give them huge business and political connections. Hell, we even saw a guy become a US President after using his dad's money to buy him a baseball team.What they failed to see was that the demand for tickets stopped being inelastic in about 2006, at least on the basis of quality [...]
2011-06-03T11:33:49.050-05:00With Cubs finances in the papers today, it's time to dust off Ivy Chat for a day. The story reports that the Cubs, among other teams, have too much debt:
(N)ine franchises (are) in violation of MLB's debt service rules, according to information presented in a confidential briefing at the owners meetings last month and confirmed to the Los Angeles Times by three people familiar with the presentation.
The Dodgers and Mets have been in headlines for their troubles and find themselves among the nine with the Cubs. Those three are joined by the Orioles, Tigers, Marlins, Phillies, Rangers and Nationals as teams out of compliance with MLB's rules, according to sources, none of whom was authorized to disclose the information.
The rules, intended to ensure clubs have the resources to support their financial obligations, generally limit a team's debt to 10 times its annual earnings, although Commissioner Bud Selig has wide latitude to enforce those rules. Selig declined to comment for this story.
2011-04-22T08:52:38.152-05:00The Dodgers are a mess. So big of a mess that Bud Selig had to have Major League Baseball take over the team's operations. This means that the Dodgers are now in a position similar to what the Montral Expos were in. How did they get here? Debt, divorce and really stupid management:
McCourt fired his wife, Jamie, from her position as the team's chief executive officer. She filed for divorce days later and McCourt responded by saying she had an affair with her bodyguard/driver and hadn't been doing her job.Too much debt, a .500 team, a run-down stadium.
That set up an ugly fight over money and control of the Dodgers that went on for months.
Bob Daly, the team's managing partner from 2000 to 2004, said baseball executives knew McCourt borrowed heavily to buy the team but they assumed he would pay down that debt once he took over. The divorce proceedings revealed that he and his wife paid themselves huge salaries and bought a handful of Southern California properties.
McCourt gave himself a $5 million salary and his ex-wife $2 million, according to evidence at their divorce hearing.
Among their many incidental expenses was a six-figure fee they paid Vladimir Shpunt, a self-described scientist and healer in Boston, to send positive energy across the country to the team. Each of the McCourts has since said it was the other one's idea.
All the drama has left some fans wondering whether the Dodgers are a second-tier team in a run-down stadium that has become increasingly dangerous — so dangerous that the Los Angeles police are now plentiful at the stadium to provide security since the beating of the Giants fan.
2011-04-15T07:48:20.844-05:00The Cubs need to maximize attendance, and also the value of the brand, is more than just a simple profit proposition. In acquiring the Cubs, the Ricketts took on a massive amount of debt, in the order of $674 million. Our good friend and former 1060 West blogger Gaius Marius provided a link to this summary of the Cubs debt picture. In short, the debt includes:$250 million in private placement notes due in staggered maturities through January 2022$175 million in bank debt due October 2013$249 million in subordinated debt, of which at least $175 million is owned by the RickettsThe first two pieces have all the Cubs assets, including Wrigley Field, pledged as collateral for the loan.While it’s impossible to know exactly what the annual costs are for these loans, we can make a reasonable guess. Interest rates are probably somewhere near 5% for the bank debt, 65 to 7% for the private placement debt, and even higher for the subordinated debt.Since the Ricketts own the bulk of the sub debt, the payments related to this are really irrelevant. If the Chicago National League Ball Club, Inc. has to cut a check every year to the Ricketts Family Trust, the Ricketts can turn that money right around and put it back into the Cubs.The private placement notes are trickier. The amortization schedules over the 13 year time period could be very irregular. But, we do know they need to be paid in full by the end of 13 years. We can also guess that none of them mature for at least 5 years. If you figure that the notes are interest only for the first 5 years, then begin to paydown evenly over the next 9 years, we can estimate the private placement debt service like this: Year Interest Principal Total 2010 $15,000,000.00 $- $15,000,000.00 2011 $15,000,000.00 $- $15,000,000.00 2012 $15,000,000.00 $- $15,000,000.00 2013 $15,000,000.00 $- $15,000,000.00 2014 $15,000,000.00 $27,777,777.78 $42,777,777.78 2015 $13,333,333.33 $27,777,777.78 $41,111,111.11 2016 $11,666,666.67 $27,777,777.78 $39,444,444.44 2017 $10,000,000.00 $27,777,777.78 $37,777,777.78 2018 $8,333,333.33 $27,777,777.78 $36,111,111.11 2019 $6,666,666.67 $27,777,777.78 $34,444,444.44 2020 $5,000,000.00 $27,777,777.78 $32,777,777.78 2021 $3,333,333.33 $27,777,777.78 $31,111,111.11 2022 $1,666,666.67 $27,777,777.78 $29,444,444.44 The line of credit that is due in 2013 is probably interest only which adds another $8,750,000 in annual debt service. It is possible that there are currently some principal reductions required, but not likely given that the banks were already paid down via the private placement notes. All in, it appears the Cubs annual debt service is close to $24 million per year with a major refinance need in 2013. Furthermore, when that debt is refinanced, it will likely be required to start to amortize beginning in 2014. That could escalate the debt service required beginning in 2014 to over $60 million per year, up from $24 million now.To sum up, while the Cubs can certainly afford the cost of their debt today, the cash flow requirement is going to escalate dramatically beyond 2013. The key risk to the Ricketts is the bank debt that will need to be refinanced. The terms of that refinancing will be dictated by the cash flows available for debt service. The more cash available after paying for operations, the less risk to a lender. The less risk, the better the terms.So, how do the Cubs improve cash flows if the seats are emp[...]
2011-04-08T07:56:00.254-05:00The Cubs season is off to a ho hum start. While .500 is about where many expect the Cubs to finish, there was certainly hope for a faster start given the Pirates and Diamondbacks as opponents. There has been some gnashing over the temporary loss of Andrew Cashner and Randy Wells, but that's really been a side story. With expectations already low for the team's win total, tertiary matters have been elevated to high profile status. What we're talking about here is the massive drop in the Cubs attendance.Last year, the Cubs first 6 home games were against Milwaukee and Houston. Tickets sold for the 6 games totaled 236,165 or an average of 39,361 per game. That compares to this year versus Pittsburgh and Arizona of 193,600 or an average of 32,267 per game. Furthermore, last year saw the smallest crowd of over 37,000 and 2 crowds of over 40,000. This year has already seen 2 crowds UNDER 30,000 and only 1 crowd larger than any of last years.It's also very important to note that these numbers represent tickets sold. Total people at the games have been far fewer. It’s been guestimated that the last three days, total in-the-house attendance was certainly under 15,000 and possibly below 10,000. God help newbie Keith Moreland in the Guess The Attendance Game.Big deal, you say. This only matters to the Ricketts net worth! It has no bearing on the game on the field. Hardly. The attendance drop, if sustained, could have huge ramifications on multiple aspects of the Cubs operations. This includes the current players, future players, the front office, and even the future of Wrigley Field itself. Why? Because the Ricketts are in this only because they convinced their father this this was a good business investment.According to Papa Joe Ricketts himself, the way Tom convinced Dad to get into a business which dad knew nothing about was the point that the Cubs, “sell every ticket, every game, win or lose." Furthermore, Tom told Dad, "(Tom) does tell me that, 'We got the ingredients, Dad. We got the management and we got the players, so we've got the ingredients to win a World Series.'"Well, the team has spent a grand total of 24 hours with a winning record since the Ricketts purchased the team. Tickets are not sold. $12 million is being sent to Carlos Silva to do nothing but sit on his duff. And Wrigley Field sill needs $250 million in renovations with the probability of getting tax money to pay for it somewhere between slim and none.With all of this happening, it's not a stretch to think Dad will insist on a change in the status quo. The Cubs have cash flow needs. These are not the days of the Tribune where a massively profitable parent company was looking for cheap programming for two of its media outlets and some additional profits to send upstream. The Ricketts have debt to pay. Massive amounts of debt.According to Forbes (http://www.forbes.com/lists/2011/33/baseball-valuations-11_land.html), the Cubs have the highest debt-to-enterprise ratio of any team in baseball at 75%. This debt isn't that much of a problem so long as the team generates enough sales and ancillary revenues to service the debt. But, if cash flow becomes tight, the Ricketts will have to rely on personal net worth to pay back debt. That's easy, you think. They're billionaires. So were the Wilpons and McCourts.The drop in attendance is only the latest sign that the Cubs brand is suffering through some serious attrition. We also know that the Cubs Convention didn't sell out and that TV ratings were o[...]
2011-03-07T16:00:14.932-06:00Things just keep getting tougher for the Ricketts. Not only do they have a hand out to the state for funds to fix up Wrigley Field, but they also are asking their primary customers to shell out more bucks as well. What do the season ticket holdsrs have to do now? Nothing. They aren't the main customers.
2011-03-02T08:41:00.116-06:00Some of the Cubs new marketing is out and it's quite a change from last year's "YEAR ONE" campaign.
2011-02-17T14:41:25.246-06:00SportsDome is in the Cubs camp and focusing on efforts to improv Alfonso Soriano's play.