Chicago Cubs File for Bankruptcy

(AP)  The Chicago Cubs baseball team filed for Chapter 11 bankruptcy protection Monday, a step that will allow its corporate parent to sell the team in an $845 million deal.

The filing in Wilmington, Del., was anticipated and is expected to lead to a brief stay in Chapter 11 for the Cubs. A hearing on the case was scheduled for Tuesday in front of the judge who has been handling the bankruptcy case of the Cubs' owner, Tribune Co.

The Cubs' filing is part of the Tribune Co.'s plans to sell the team, Wrigley Field and related properties to the family of billionaire Joe Ricketts, the founder of Omaha, Neb.-based TD Ameritrade.

Tribune, which also owns the Chicago Tribune and the Los Angeles Times, filed for bankruptcy protection in December, but the Cubs were not included in the filing. The team's run through Chapter 11 is expected to protect its new owners from potential claims by Tribune creditors.

Tribune bought the Cubs in 1981 for $20.5 million from candy maker Wm. Wrigley Jr. Co. It announced plans to sell the franchise in 2007, but got tripped up by the recession and the collapse of the credit markets.

It has agreed to sell the Ricketts family a 95 percent stake in a deal that tops the record $660 million paid for the Boston Red Sox and its related properties in 2002. Tribune Co. is keeping the remaining 5 percent.

Major League Baseball's other team owners have approved the sale.

The Cubs' bankruptcy filing is not the first in baseball. The Baltimore Orioles were sold in a bankruptcy auction in 1993 after owner Eli Jacobs filed for Chapter 11. The same happened to the Seattle Pilots after the 1969 season. The new owners moved the team to Milwaukee and changed the name to the Brewers.

The National Hockey League's Phoenix Coyotes, a franchise that has yet to make a profit since moving from Winnipeg, Manitoba, in 1996, filed for Chapter 11 protection in May.

[gman1951]

Gee....Let's pay these players more money!!!! Maybe we can bankrupt everyone!!!!The owners and managers did it to themselves paying the players such a stupid amount. What the H...!!!!!! I like the comment from dontknowitall! Perfect.

[dontknowitall]

With a payroll of over 134 million dollars the players could take a 50 percent drop in pay and own the club out right in 10 years. Of course then they'd have to work for their money. One or two world series wins and they'd be back in the money.

[wilbursandersjr]

by Questionews October 12, 2009 5:57 PM EDT

The Yankees should buy them. It's not like they're in the same league.

Very Nicely Said.

[Questionews]

The Yankees should buy them. It's not like they're in the same league.

[picklepants7]

let's look at the economics of this deal. the tribune bought the cubs for $20.5 million in reagan dollars in 1981. they sell for $845 million in obama dollars in 2009. looks like if you compare what the dollar was worth when reagan was in office to obama's dollar, the tribune barely made a profit.

[timdgrim]

Maybe Rush Limbaugh will try to buy them too, like he's supposedly bidding for the Rams. Limbaugh having ownership of a pro sports team in St. Louis or Chicago? Think about it.....That would be like the KKK owning Motown!

[Questionews]

What? No bailout jokes??

You guys are slipping!!

[stuart-johns2]

No and I'm surprised that you would'nt be the first one to bring Obama into the discussion.

The Cubs suck. Always have. Period.

[Questionews]

Swing & a miss there stu.

If you remember correctly, Bush started the bailout series & was quickly in a big hole by the fifth inning. Bush got yanked & Obama was brought in for relief pitching in that game. (I would say it's the bottom of the 7th & Obama has walked a couple, but has slowed the opponent scoring.)
Besides, Bush was the Baseball man & Obama is a hoops guy. When the Clippers file for bankruptcy I'll bring Obama's name up.
You should really look into your obsessive sensitivity issues. Not everybody is out get Obama.

[koko98-2009]

What's new. This team has been bankrupt on the field for the last century.

[bajajohn1]

Well, when your team is a perennial loser, you sell beer and dogs at prohibitive prices and the economy tanks and basically the team s.uc.ks, why would anyone want to spend money on you?

[stinkygeez18]

Dumb comment. You know dang well they sell out all their games.