The Cubs, MLB, and a Cuban Missile Crisis

Before we get started, don’t let the title fool you; this isn’t about that abysmal Cubs team that went 59-103 with El Tappe, Lou Klein, and Charlie Metro at the helm. And no, the world is not on the precipice like those days in 1962 when Kennedy and Khrushchev took the world to the brink of nuclear war. But, there is an arms race going on with this story, although not of the pitching variety.

The sale of the Chicago Cubs from Sam Zell, the new owner of the Tribune Company, is nearing its final stages, and with it, history will be made. The sale of the Lovable Losers, Wrigley Field, and a 25 percent stake in ComcastSports Chicago will be bringing in well over $1 billion, thus surpassing the Red Sox sale in 2002 and setting the bar for other storied franchises that might come up for grabs, as well as push the needle up on all other clubs – big or small – if and when they hit the market. Somewhere, Harry Caray is saying, “Holy Cow!”

Five approved bidders that have reached the second round in the process each have submitted bids around that jaw-dropping $1 billion. Those bidders include Thomas Ricketts, whose father Joe founded the TD Ameritrade brokerage, Michael Tokarz, chairman of MVC Capital Inc., Sports Properties Acquisitions Corp., who has Henry Aaron and Jack Kemp as public representatives, but is headed by Andrew Murstein, a New York taxi company magnate, and fueled by a $200 million shares sale this past January, a group headed up by Hersch Klaff, a real estate investor, and Mark Cuban, owner of the Dallas Mavericks, and Chairman of HDNet, an HDTV cable network.

In a striking turn of events, the bidder deemed to be a near lock for the package, Madison Dearborn Partners CEO, John Canning, Jr. is sitting on the outside looking in after offering up an initial bid of approximately $800 million, a figure that while large, came in a cool $200 million below where those that made the cut landed. Canning, a minority owner of the Brewers, and a close friend of Bud Selig, fits MLB’s personal profile better than the best Armani suit, but at the end of the day, the Cubs sale is in such rarified air, at least in terms of the sale price, that Canning’s pull with the MLB brass simply couldn’t keep up dollar signs.

And, while Canning may seem to be out of the running, there is certainly the possibility that he could pull together more capital and get right back in the mix. The question on MLB’s mind is, will he? This is, after all, the Cubs, a club that has been successful while being the Kings of Futility. There are brands in baseball, but short of the Yankees, Red Sox, and possibly the Dodgers, is there a name that resonates across America as well? MLB needs -- nearly demands – an owner like Canning. Because, sitting on the doorstep and knocking hard is the antithesis of what an MLB owner is like today.

Mark Cuban, a man whose exceptional worth (reportedly $2.8 billion) was gained through new technology, selling Broadcast.com to Yahoo! and in the process became a billionaire. And while those Armani suits describe Canning, Cuban is one who seems to see the black turtleneck and jeans ala Steve Jobs as being “dressed up.” He’s a jeans and tees guy, something that most anyone with a pulse would have a hard time seeing the vast majority of the ownership brethren ever wearing.

Cuban, the NBA Mavericks owner, has been the one driving the arms race forward in the Cubs sale. A man that seems so driven to gain access to the Cubs that he reportedly has offered an initial bid of $1.3 billion, thus making it clear: you want to play hardball, bring your wallet.

With Canning out (for the moment; maybe longer), Cuban becomes the wild card, and in some ways, the prohibitive favorite. Here’s why.

Sam Zell, while wishing to retain a minority share of the Cubs, really has no interest in the baseball holdings tied to Tribune. Zell’s main motivation to keep that minority share is for tax dodge pur