generic cialis praha viagra 50 mg uso clomid 50 mg success cialis 5mgaustralia original dapoxetine online hydrochlorothiazide 25 mg webmd how long does it take for celebrex to work how to order astelin cialis 10 mg mexico generic tulasi switzerland metformin generic otc viagra tablets order viagra 50 mg wirksam lisinopril 10 mg w929 how to use isoniazid generic lexapro better very cheap confido what's the best online pharmacy quinine malaria prevention cheap viagra soft generico viagra curitiba online genuine viagra atacand prescription medication bactrim 800 mg treatment amoxicillin on line 300mg viagra lantus solostar pen needles size generic combivent united states lotensin without prescriptions lexapro generic patent there generic advair diskus cephalexin sold over counter flovent pharmacy order trunature saw palmetto costco cipro acis 500mg canada drugs viagra professional with prescription cialis professional generico ajanta kamagra 100 mg buy viagra plus tried generic viagra can order revatio canada cost of quibron-t without insurance cheap levitra 10mg zithromax in croatia 300 mg of wellbutrin buy cialis edmonton doxycycline 200mg acne order cialis fedex celebrex capsule 400 mg generic zithromax chlamydia metronidazole flagyl side effects in dogs order moduretic from cialis generic wiki priligy generico acquisto buying viagra dubai esomeprazole magnesium uses where to get bupron sr pct elavil 10mg amitriptyline hcl online viagra paypall canadian adalat 30mg what is etodolac 400 mg tablets midamor without prescription cheap accutane sale uk northstar generic zoloft levitra india pharmacy isotretinoin alcohol zithromax 250 mg liquid lady era pill canadian order-pills.com review buy nolvadex canada buy clomid mg using cialis 20mg zyprexa diabetes class action lawsuit buy rogaine 5 boots astrazeneca nexium 40mg lexapro 600 mg buy sinemet (25-100) purchase flomax on line in the uk cipro order xenical generic 120mg cialis 20mg faq cialis generic thailand periactin 4 mg cyproheptadine buy levitra super can u buy flonase over the counter cialis 20mg belgrado doxycycline 100mg depression order ortho tri cyclen cheap cheap daily cialis erection packs 13 drugs lek propranolol 10 mg retirada generico viagra cialis commercial 2011 live tv in italian purchase non perscription birth control pills online protonix without a prescription from us 25mg viagra experiences wellbutrin sr can be shipped to india metformin 850 mg beipackzettel kamagra cheap price tetracycline 250 mg chlamydia levitra 40 mg bayer advair 150/50 side effects zoloft online sale drug generic wellbutrin viagra gold 800mg venta xenical online bystolic performance anxiety buy trial erection packs 2 lowest price med cab actonel early symptoms of chlamydia in men include levitra buy sydney side effects of amoxicillin 250mg bactrim nome generico buy priligy lebanon canada cipro online clomid levitra super active buy online us what is the dosage for alavert australia generic viagra prednisone 10 mg identification vigra airport hotels cialis 40 mg cheap can you order viagra super active how to take flagyl er aldactone tablets high blood pressure glucophage 1000 mg dosis lariam not generic order xenical philippines viagra venta online buy lozol no prescription fast delivery buy nexium capsule clomid buy visa order viagra spain medicamentos celebrex 200 mg take 2 150 mg wellbutrin generic coreg buy canada kamagra 100mg acheter ordering metformin online zovirax online kopen zebeta pill canadian prescription xenical orlistat buy revia from canada cobra 120 erfahrungsberichte cialis 20mg dangers nexium cost per pill como comprar isoptin wellbutrin xr 100 mg luvox maximum dosage 100mg kamagra reviews can you get forzest over the counter ordering clomid indian pharmacy xeloda viagra online edmonton buy prevacid 15mg online pharmacy propecia generic cialis cut 20mg price lisinopril 2.5 mg cialis online contrassegno clonidine capsules singulair 5mg chewable cost purchase clomid online viagra 400mg. buy generic geriforte syrup online lasix water pill and weight loss cialis 5 mg ulotka can you buy adalat canadian jual cialis 80 mg efecto cialis 5mg zithromax drug oversea 20 mg levitra dosage buy zovirax budapest 2.5 mg lexapro zithromax sinus infection reviews buying 800 mg viagra viagra generico walmart flagyl birth control online uk xenical online prescription lamisil canada overnight delivery anxiety disorders zoloft online viagra cipla buy doxycycline paypal hydrochlorothiazide 125 mg cp i pill alavert website cheap acticin without prescriptions prednisone 20 mg rash uso cialis 10 mg zestril shop net 25mg viagra enough paroxetine hcl 20 mg reviews where to purchase isoptin viagra online risks black cialis 500mg kamagra gold usa cvs prices vytorin for sale lexapro generico 100mg viagra sale online prilosec otc coupon metformin hmgcoa reductase buy levitra fast yasmin birth control discount card what are the side effects of arimidex canadian pharmacy online 24h how to import avalide doxycycline sleep disorders hctz 25 lisinopril 20 mg lexapro generic version 2012 how to buy finast in london 40mg cialis dosage clomid 50mg results 10 oder 20 mg cialis robaxin online bestellen cialis 50 mg 100 mg cialis drugs online augmentin 500mg prospect where to buy baby zantac where can i get calcium carbonate pills lisinopril 40 mg tabl nitroglycerin dosage chest pain atorlip-5 dose azathioprine metabolism and allopurinol lotrisone online order cialis 60 mg information side effects of avalide 300-12.5 mg lexapro 10 mg citalopram buy lederle minocin viagra 50mg review zantac tablets from buy canadian online pharmacy for levothroid order desyrel tablets doxycycline 500mg paypal differin generic available atarax side effects long term use buy naprosyn 50 pharmacy technician registration canada buy diflucan powder lexapro generic available levitra online purchase 4 motrin pills water pills over the counter side effects atorlip-20 canada head office celebrex 100 mg capsules finpecia medication online synthroid 75 mcg side effects aricept drugs use prescription zestoretic drug class american styplon generic zoloft mg clomid generic 50mg quinine malaria history lasix 40 mg aventis buy amaryl for daily use clomid success 50 mg colchicine drugstore.com viagra buy bangkok cialis soft purchase in canada no prescription zanaflex on the internet nexium iv 40 mg phexin tablet usage what does rosuvastatin cialis 20 mg 2 comprimidos lexapro cheapest price obat celebrex 200 mg viagra at walmart pharmacy levitra 10mg tablet fluoxetine 20 mg cap buy levitra online usa clomid tablets buy cialis 20 mg medicamento viagra forums users xenical 120mg delhi prednisone 7 mg daily viagra dosage 10 mg generique cialis 60mg nolvadex sale australia what causes tetracycline staining zithromax online consultation buy 1 mg propecia pharmacy that sells bactrim older cailas on line daily dose cialis blood pressure augmentin 125 mg syrup fineviagra com br propranolol hcl 60 mg lisinopril 20 mg wockhardt ventolin overnight shipping cheap generic cialis 5 mg. where viagra or cialis cialis mg size compare prices tamoxifen keflex online overnight shipping where is the best place to buy cialis order clomid prescription hoodia 40 mg pharmacy cheap lipitor free delivery india cialis online lisinopril overdose 40mg cheap xenical pills generic synthroid tablets cialis dosage for ed danazol no prescription compare prices bactrim compositum 200mg side effects of clindamycin phosphate lotion zovirax suspension 200mg buy cymbalta pills in the uk buy cialis 150 mg ordering protonix methylprednisolone for ms side effects cialis 20mg australien diflucan generic prescription where can i buy lasix in uk average cost generic lexapro ordering low dose zestoretic pramipexole gyno best place to buy diovan buy tamoxifen online uk clomid atacand 16 mg fiyat zoloft 6.25mg generic wellbutrin ir buy rumalaya liniment online amazon finpecia overnight pharmacy citalopram 20mg stimulant xenical online without rx abilify cheaper toradol canada prescription genrx doxycycline 100mg taking 2 10 mg cialis zoloft 100 mg compresse buy nolvadex research viagra satis 50 mg doxycycline hyclate 100mg cap kamagra where to purchase clomid pills online diflucan 150 mg walmart generique lopressor 100 mg prednisone 60 mg dog lupin lisinopril 5mg prednisone online sale generic valtrex prices vasotec pharmacy order minoxidil 12.5 cost zoloft 100mg dosage zanaflex generic australia florida singulair zithromax 900 mg clomid ovulation calculator menstrual cycle apo-azathioprine colitis celebrex 2oomg 4 days 10 mg prednisone order xanax from canada no prescription buy kamagra galway cheapest viagra alternative medrol dose pack common side effects diflucan 150 mg beipackzettel buy chloramphenicol 5 is mail order norvasc safe where can i purchase lynoral over counter tetracycline mouthwash generic cialis tablets can order strattera online buying viagra london propecia goes generic 2013 diflucan 150 mg cps health canada zoloft finax medicine buying diflucan online where is reglan metabolized propranolol 40 mg bijsluiter reviews on pravachol acheter clomid sans ordonnance en france viagra super active pill canadian benadryl online australia lexapro withdrawal 5 mg lexapro generic buy worldwide pharmacy isoptin kamagra schweiz online wellbutrin sr 150 mg zoloft tic disorders generico cialis madrid levitra 20 mg pakistan arimidex by mail comprar chloroquine original en madrid celebrex 200 mg ulotka lisinopril 20 mg prezzo cialis 20 mg generico finasteride manufacturers us valtrex 200mg nexium granule generic rx security inc canada doxycycline 200 mg iv propecia 1mg apteka buy zofran 200 metformin 1500 mg dosage liquid viagra thailand compare prices atorlip-20 order brand advair diskus cheap viagra originale 25 mg celebrex 200 mg francais bactrim f generico diflucan online bestellen buy viagra bangladesh propecia generic cheap costco kirkland benadryl cipro basics 250 mg viagra dealers in sri lanka prijs celebrex 200 mg buy cialis amsterdam cialis generico 10mg ordering lisinopril online zithromax 500 mg dosing anacin shop net viagra erection disorder 100mg clomid bfp generic lisinopril 40 mg lexapro 20 mg wikipedia zoloft 50 mg pfizer cheap generic acivir pills viagra usa 800 mg escrow refills online pharmacy promethazine shortage 2012 what is allegra 180 used for cipro 500 mg kullananlar cialis sublingual perth australia glucophage 50 mg cod antivert cheap overnight delivery aciphex rxlist where can i get some pravachol realo discount drugs new bern where can i get flagyl er pills actos pharmacy prices list mastercard generic cialis flagyl er shopping generic valtrex 1000mg cheap viagra com viagra 500mg side effects nexium 40 mg prospecto micronase purchase in canada no prescription generic calcium carbonate buy canada doxycycline on line no script buy betnovate perth australia bayer levitra 10 mg cost cialis 20 mg buy cheap allegra d ordering levitra canada zovirax pill shop discount code buy livestock chickens nolvadex tamoxifen buy generic name ciplox discount noroxin cheapest viagra 25mg zithromax dose 1500 mg 5 mg lexapro tired what are the side effects of disulfiram viagra 100mg results propecia 1 mg t fast bactroban deleviery buy valtrex cheap order bactrim 800 mg what is ralista used for nexium 40 mg pregnancy buying cialis london propecia 1mg 98 zithromax 600mg i amitriptyline usa pharmacy what is erythromycin ophthalmic ointment usp 0.5 used for generic strattera 100mg cheapest clomid online vitamin shoppe nyc upper east side 30 mg cialis online pharmacy uk antivert do i need a prescription for voltaren gel generic cialis tadacip what does viagra do to young men buy dapoxetine online at canada pharmacy can you buy unique hoodia in stores buy metformin online buy cipro fedex indocin buy uk augmentin 625 mg syrup viagra buy ireland apcalis sx oral jelly zithromax 400mg order amitriptyline uk pharmacy acheter levitra plus generic tetracycline 500mg lexapro generic mylan minocycline acne purchase online sale of maxalt online canada cialis buy viagra zenegra what are the side effects of oral lamisil lexapro vs. generics prednisone eg 20 mg propecia finasteride1mg 300 mg red viagra buy moduretic online us no prescription all types aciclovir pills canada cheap propecia amoxil common cold lloyds pharmacy opening times reading mentax order by phone
Home MLB News MLB Club Sales Debt Structure in Cubs Sale Has MLB Worried

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 632 guests online

Atom RSS

Debt Structure in Cubs Sale Has MLB Worried PDF Print E-mail
User Rating: / 14
PoorBest 
MLB Club Sales
Written by Maury Brown   
Wednesday, 10 September 2008 07:56

 


 

With Sam Zell and the Tribune Co. looking for a tax-avoidance deal with the sale of the Chicago Cubs, MLB is worried that the buyer will have to borrow extensively, thus saddling the club with too much debt.

MLB has a firm debt-prevention policy in place in the 60/40 rule (a club cannot carry debt 40% above the asset value), but a deal for the Cubs may have MLB owners looking even closer at the sale structure given the franchise's iconic stature within the game. A debt-loaded Cubs organization would place constraints on matters such as player payroll.

The problem for Sam Zell and Tribune is that an outright sale would mean paying taxes in excess of $400 million. Tribune purchased the Cubs in 1981 for $20.5 million. With the combined sale of the Cubs, Wrigley Field, and a 25 percent stake in ComcastSports Chicago, the price should easily exceed $1 billion. As reported by the Chicago Tribune, Zell will be looking to get creative with the deal.

Instead, he wants to create what's known as a leveraged partnership between the buyer and Tribune to own the team. The partnership would borrow money to buy the team, and the proceeds from the loans would go to Tribune. The media company would retain a small stake in the partnership, less than 5 percent, giving it some exposure to the loans.

Under the terms of a leveraged partnership, only borrowed money can be distributed tax-free. Consequently, in some of these deals as much as 90 percent of the purchase price is financed with debt to maximize the cash payout, Willens said.

"When you set up a structure like that, it's costly," said a source close to one of the five remaining bidders who asked to remain anonymous. "The more debt you put on it, the more expensive it is. The more leverage, the more scrutiny you get from baseball."

Because of the leveraged partnership arrangement, the deal is not considered a “sale” even if Tribune receives money up-front. In doing so, Tribune would avoid capital gains taxes. Any sale completed this way would, for purposes of taxation, then occur 10 years into the future, or 2018, if the deal is completed this year.

It will be interesting to see how the owners respond to a deal structured this way – a deal that won’t be known until the purchase agreement is completed. With the tax-avoidance structure, the potential for a Sam Zell vs. MLB showdown could be in the offing. Look for the sale to occur sometime shortly after the World Series and possible approval by the 30 owners sometime shortly thereafter.

MORE ON THE SALE OF THE CHICAGO CUBS


Maury Brown

Maury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He is contributor to Baseball Prospectus, and is available as a freelance writer.

Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.

Don't forget to register and log in on The Biz of Baseball site to get updates via your in-box, and see information only logged in members can see.

 

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?