CHICAGO (AP) – Negotiations between Tribune Co. and a state agency that wants to buy Wrigley Field have again broken down over how to finance the deal, officials from both sides said Monday.
The problem is coming up with a transaction that would not involve taxpayer money and thus could gain approval from city and state officials, said former Gov. Jim Thompson, executive director of the Illinois Sports Facilities Authority.
Officials with Chicago-based Tribune told the ISFA its acquisition of the ballpark may require new taxes or the transfer of sales and amusement tax revenue from Wrigley Field for the next 30 years, Thompson said.
Tribune said it may also require moving money the ISFA has already promised for projects at U.S. Cellular Field, the Chicago White Sox’s ballpark that the ISFA owns, Thompson said.
“ISFA cannot agree to this,” Thompson said. “In our judgment, there are no votes in the City Council or in the Illinois General Assembly for transferred or new taxes for Wrigley Field. And we cannot break the promises we have previously made to the White Sox under our lease terms.”
Outside experts believe a package that includes Wrigley Field, the second oldest ball park in the majors, together with the Chicago Cubs could fetch as much as $1 billion for the cash-crunched media conglomerate.
Tribune confirmed in a statement that the sides were unable to agree on a deal.
“As an employee-owned organization, Tribune has been clear and unwavering in its commitment to a transaction that is favorable to the public, to the company, and to the Cubs,” the company said. “Unfortunately, ISFA’s proposal did not meet this criteria and would, in fact, violate the policies of Major League Baseball.”
The ISFA would resume negotiations with Tribune “or any new owner of the Cubs” at their request, Thompson said.
Tribune CEO Sam Zell first stated his intentions to sell the Cubs and Wrigley more than a year ago as part of his agreement to take control of the company.
Zell’s decision to nix a recent $400 million proposal from the ISFA was first reported last month by the Chicago Sun-Times. The newspaper, citing unidentified sources, said Tribune executives had concluded that the agency’s novel plan to raise financing without increasing taxes – by selling equity seat rights at Wrigley – could violate both Internal Revenue Service code and MLB rules.
Thompson said Monday that the ISFA’s plan to acquire Wrigley Field included issuing taxable bonds paid for by lease revenues from the Cubs and naming rights.
“This would be done within the policies and rules of Major League Baseball. … This would cost Illinois taxpayers nothing,” Thompson said.
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