- Jun 12, 2001
- 8,757
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Tribune Co., owner of the Chicago Tribune, said today it intends to sell the Cubs, Wrigley Field and ?related real estate? in the first half of 2008.
The company needs the money to pay down debt from an $8.2 billion buyout being completed by billionaire Sam Zell. It made the statement about the Cubs as part of an announcement of continued declines in advertising and circulation revenue.
The revenue drops during 2007 have caused some to speculate about Tribune?s viability once the sales closes and causes the company debt to grow by nearly $8 billion, to an estimated $14 billion. Planned asset sales could help reassure corporate bond holders and the investment banks backing the deal.
Tribune also said it will sell its interest in Comcast SportsNet Chicago during the first half of 2008.
It said nothing else about the Cubs-related assets. Zell is looking at selling Wrigley Field and surrounding real estate separately from the team itself.
For the company?s 11th reporting period ending Nov. 25, it said revenues were down 3.3 percent from last year to $413 million. Expenses were down 5 percent, Tribune said, without giving a figure.
The decline was mostly due to classified advertising, which checked in with revenue that was down 26 percent. Tribune said it is being particularly affected by the real estate market in Chicago, Florida and Los Angeles.
Retail advertising and national advertising rose 7.3 percent and 1.1 percent, respectively, for the period, Tribune said. It attributed part of the increase to the earlier Thanksgiving on the 2007 calendar vs. last year?s.
Tribune said circulation revenue was down 4.6 percent due to declines in single-copy sales and discounting to promote home delivery.
The company?s operations include 23 television stations and such papers as the Los Angeles Times, Newsday and the Sun of Baltimore
The company needs the money to pay down debt from an $8.2 billion buyout being completed by billionaire Sam Zell. It made the statement about the Cubs as part of an announcement of continued declines in advertising and circulation revenue.
The revenue drops during 2007 have caused some to speculate about Tribune?s viability once the sales closes and causes the company debt to grow by nearly $8 billion, to an estimated $14 billion. Planned asset sales could help reassure corporate bond holders and the investment banks backing the deal.
Tribune also said it will sell its interest in Comcast SportsNet Chicago during the first half of 2008.
It said nothing else about the Cubs-related assets. Zell is looking at selling Wrigley Field and surrounding real estate separately from the team itself.
For the company?s 11th reporting period ending Nov. 25, it said revenues were down 3.3 percent from last year to $413 million. Expenses were down 5 percent, Tribune said, without giving a figure.
The decline was mostly due to classified advertising, which checked in with revenue that was down 26 percent. Tribune said it is being particularly affected by the real estate market in Chicago, Florida and Los Angeles.
Retail advertising and national advertising rose 7.3 percent and 1.1 percent, respectively, for the period, Tribune said. It attributed part of the increase to the earlier Thanksgiving on the 2007 calendar vs. last year?s.
Tribune said circulation revenue was down 4.6 percent due to declines in single-copy sales and discounting to promote home delivery.
The company?s operations include 23 television stations and such papers as the Los Angeles Times, Newsday and the Sun of Baltimore
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