CHICAGO _ The Chicago Cubs paid Tribune Media $107.5 million for the broadcast company’s remaining 5 percent possession stake in the workforce, a offer that values the club at $2.15 billion.
For those of you trying to keep score at household, which is about 100 moments what Tribune paid for the workforce almost 40 several years ago.
Conditions of the January sale ended up launched Friday throughout Tribune Media’s fourth-quarter earnings report. Tribune Media explained it will realize a pretax attain of $86 million from the sale.
The offer will come almost 10 several years following the Ricketts household paid $845 million to get a 95 percent stake and managing interest in the workforce and Wrigley Industry from Chicago-primarily based Tribune Media, which owns WGN-Ch.9 and dozens of Tv stations nationwide. Now the Ricketts household and a small team of exterior buyers have complete possession of the workforce.
Tribune Media, then identified as Tribune Co., acquired the Cubs in 1981 from the Wrigley household, founders of the chewing-gum corporation, for $21.1 million.
As a final result of the January sale, Tribune Media has a deferred tax legal responsibility of $69 million it expects to owe on the attain, the corporation explained in its earnings release.
Tribune Media may possibly owe a good deal far more in taxes for the Cubs transactions, however.
In the 2009 sale to the Ricketts household, Tribune Media retained its minority stake in the Cubs through a sophisticated transaction structured as a leveraged partnership instead than an outright sale in a bid to steer clear of money gains taxes.
The offer was later on challenged by the Inside Earnings Provider, which explained Tribune Media owes $225 million in condition and federal taxes, and $81 million in interest and penalties.
Tribune Media is contesting the IRS ruling and “continuing to go after resolution” of the tax dispute, but the sale of its remaining stake “has no influence” on the company’s potential tax legal responsibility, according to a information release Friday.
Gary Weitman, a spokesman for Tribune Media, declined to remark. Tribune Media spun off the Chicago Tribune and other significant newspapers into Tribune Publishing in 2014, retaining broadcast, serious estate and other assets, which includes its 5 percent stake in the Cubs.
In December, Nexstar Media Team agreed to invest in Tribune Media for about $4.1 billion, pending acceptance from shareholders and federal regulators.