Comments on: The Chicago Cubs Go Bankrupt, How Do You Do That?

By: Retirement Savior

Retirement Savior — Tue, 13 Oct 2009 20:13:24 +0000

Baseball is a tough sport for a business. It is easier for the Cubs because they have such dedicated fans, but the fact that salaries are so high makes the payroll on any contender a tough proposition.

I bet the recession didn’t help either, because tickets would be viewed as a luxury item.

I wonder if they are getting enough revenue from WGN, as I know that the Yankees make a boatload from the YES network (though I believe the Yankees own the network).
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By: Kevin M

Kevin M — Tue, 13 Oct 2009 19:15:29 +0000

First off, I think it’s funny/sad that the Cubs 4th largest creditor is their own charity!

Second, who in their right mind would loan a baseball team $10 billion dollars?

Third, why does it matter who sells the team (Tribune Co or the creditors)? The sale price is set, it’s 6 for one/half-dozen the other.

By: Financial Samurai

Financial Samurai — Tue, 13 Oct 2009 18:41:13 +0000

Wow, they owe 10 BILLION?! How did that happen. Unbelievable. That's quite impressive actually, and shows how great our financial system is to be able to lend and lend and lend and have organizations and people suffer no consequences except for file for bankruptcy protection. .-= Financial Samurai´s last blog ..Slapping Hands With Famous People, Saving Money At Events & Priceless Moments =-.

By: Broke MBA

Broke MBA — Tue, 13 Oct 2009 17:55:30 +0000

Interesting. I agree, the creditors should get ownership of the team, and then have the right to sell the team to the TD Ameritrade family or whoever will pay top dollar. I thought the creditors were paid first, then bondholders, maybe preferred stock holders, and finally common stockholders (if there is anything left.) Is the Tribune/Cubs privately owned?

I love baseball though. Couldn’t disagree more with on that one!

By: Jeremy

Jeremy — Tue, 13 Oct 2009 14:39:16 +0000

It’s easy to go bankrupt when you pay players ridiculous sums of money and then have 80 or more home games that nobody can afford to go to. Hell, most of the games are on weekday afternoons so people with jobs that can afford to buy a ticket aren’t able to go anyway.

Baseball as a whole is a relic from a different era. While it is steeped in tradition and people are obviously afraid of change the sport needs to adapt a bit so it works in the 21st century.
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