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To: Glenn Petersen who wrote (51873)	5/19/2006 10:59:15 PM
From: stockman_scott	Respond to of 104155

I used to work for the President of a diversified media firm (that published magazines and ran local broadcast TV stations)...We outperformed Tribune every year in terms of our return to investors. We would closely evaluate how our publicly traded firm did versus the peer media firms. I am in a different industry now but my old company continues to outperform Tribune (which has underperformed the S&P dramatically in the last 18 months)...It really doesn't make a lot of sense for a diversified publicly traded media company to own a baseball team -- and today over 95% of all MLB teams have private owners (or syndicates of private owners). Tribune made a huge acquisition when they bought the Los Angeles Times a few years ago and so far it hasn't paid off...The company is also suffering in this new Internet age as more and more classified advertising migrates online (firms like eBay, Google, and craigslist have taken LOTS of business from the traditional local newspapers)...Since Tribune is publicly traded they have to file with the SEC...Yet, they don't provide detailed info. on some of their individual properties (like the Cubs)...from the passages below (taken from their new 10Q filed at the end of April) it appears that Tribune's growth has stalled, profits are down, and the cash flow from operations is dropping off...It's not surprising that the top management team of this company is under pressure from the large shareholders. It's very likely that they may be forced to sell off some assets in the next few years. The Cubs baseball team is one of Tribune's more valuable assets and they could sell it next week for close to a half a billion dollars...This would be the best thing for the fans and for the team. New private ownership that had a DEDICATED FOCUS on building a world class team would have more success going after a championship title. It's very difficult for the Cubs to operate effectively under the Tribune umbrella...Tribune would be better off if it would shed non-core assets. Here's a link to their recent SEC filing... yahoo.brand.edgar-online.com {...Consolidated operating revenues for the 2006 first quarter fell 1% to $1.3 billion due to declines in publishing and broadcasting and entertainment revenues. Consolidated operating profit decreased 12%, or $29 million, in the first quarter of 2006. Publishing operating profit decreased 12%, or $25 million. Publishing operating profit in the first quarter of 2006 included a $19 million charge associated with the new union contracts at Newsday, $7 million of stock-based compensation expense and a $7 million gain on property sales. Broadcasting and entertainment operating profit was up 3%, or $2 million, in the first quarter of 2006, primarily as a result of the absence of $13.5 million of additional compensation expense recorded by the Chicago Cubs related to a player trade in the first quarter of 2005, partially offset by lower operating revenues, higher programming expenses and $3 million of stock-based compensation expense... LIQUIDITY AND CAPITAL RESOURCES ...Cash flow generated from operations is the Company’s primary source of liquidity. Net cash provided by operations in the first quarter was $219 million in 2006, down from $330 million in 2005. The Company expects to fund dividends, capital expenditures and other operating requirements with net cash provided by operations. Funding required for share repurchases and acquisitions is financed by available cash flow from operations and, if necessary, by the issuance of debt and proceeds from the issuance of stock related to stock option exercises. Net cash used for investments totaled $29 million in the first quarter of 2006 compared with $63 million in the first quarter of 2005. The Company spent $22 million for capital expenditures and $7 million for investments in the first quarter of 2006...}

To: Glenn Petersen who wrote (51873)	5/19/2006 11:02:53 PM
From: stockman_scott	Respond to of 104155

"Tribune Co. taking hard look at holdings" ________________________________________________________________ This was the title of a Crain's Chicago Business article from last October... chicagobusiness.com Cubs are among assets in a $2-billion portfolio being reviewed for sale {...Tribune Co. CEO Dennis J. FitzSimons is considering selling assets to prop up his company's shares, and that's got some wondering if the Chicago Cubs could go on the block. Investors expect Mr. FitzSimons' search for salable assets to focus on holdings not fundamental to the company's primary businesses of publishing and broadcasting. Tribune may sell some assets to pay debt, buy back its own stock or make acquisitions. Here's a look at some things that could be sold and their estimated values as determined by an informal survey of five analysts and investors. Asset: Food Network (31% stake) Estimated sale value: $750 million Why sell? A sale would cover much of the additional debt the company incurred as the result of a lost tax case. Owning part of a cable channel poses few benefits to the company's 26 TV stations. Why not? The value is rising as ratings soar, making stars of Emeril Lagasse, above, and Rachael Ray. If the FCC ever clears Tribune to buy more TV stations in markets where it has newspapers, the company could swap the stake with majority owner Scripps in exchange for that company's struggling Baltimore ABC affiliate. Asset: Chicago Cubs (100% Tribune-owned) Estimated sale value: $400 million to $550 million Why sell? With Wrigley Field expansion set to begin and attendance at all-time highs, the team would fetch a premium. Tribune could demand long-term broadcast rights in any deal. Why not? Tribune bought the team for $20.5 million in 1981, so the tax hit could be large. "They'd also be very wary of ever being in a position to bid for the Cubs' broadcast rights, no matter how far in the future it is," says Barrington Research Associates Inc. Analyst James Goss... ...Selling the Cubs "makes more sense now than it has in a while," says John Miller, a vice-president at Chicago-based Ariel Capital Management LLC, Tribune's fifth-largest shareholder. "They're trying to get the stock turned around, so they tried buying back their shares, and that didn't work. Now, they move on to non-core assets, like the Cubs." Ownership stakes in the WB Network, the Food Network and the CareerBuilder.com Web site also could be sold for cash to pay down debt, buy back shares or make acquisitions. In all, Tribune has a portfolio of ancillary assets worth as much as $2 billion, analysts say. Focusing on core businesses may give the stock a boost. The company is struggling with dwindling audiences and lagging advertising. Tribune shares have plunged almost 27% this year, closing Friday at $30.91...}

To: Glenn Petersen who wrote (51873)	5/20/2006 12:54:51 AM
From: stockman_scott	Respond to of 104155

Cubs' position: Wary of being run over ___________________________________________________________ BY TONI GINNETTI Chicago Sun-Times Staff Reporter May 19, 2006 Cubs reliever Scott Eyre already has plans to have dinner Friday night with White Sox catcher A.J. Pierzynski. "My family and his wife and little girl,'' Eyre said. "We've been friends since we played together with the Giants [two years ago]. I haven't thought about the series yet.'' That would be the crosstown series that begins today at U.S. Cellular Field. The one that means so much to Chicago fans. The one that generates civil-war fury. The one more important to some fans than the regular season. The one the multitudes seem to think the struggling Cubs have no chance in. "Face it,'' catcher Michael Barrett said, "this is probably the first time in years we're the real underdogs. I imagine we'll see fewer Cubs fans because they probably sold more White Sox tickets. We'll have to deal with that.'' And, Barrett knows, they'll have to deal with a superb pitching staff, a quality defensive team -- and the daunting addition of Jim Thome. "Thome is the big difference for them now,'' Barrett said. "Paul Konerko and Jermaine Dye could hit home runs, but when Frank Thomas was hurt, they were missing that big, booming bat. Magglio Ordonez was that for them before. But Thome is an Albert Pujols-type threat. It's kind of like us without [Derrek] Lee. "They have so many weapons, and it starts with pitching. Their starting pitching is great, their bullpen and their young closer [Bobby Jenks] is very good. Their defense is really good, and I thought last year they were the best in baseball at going first to third. Konerko is the RBI threat, and Ozzie [Guillen] will be doing everything he can to get guys on ahead of him. "We'll have to be on top of our game to defend that and try to slow them down.'' So the Cubs would seem to be wounded prey being tossed into the hungry lion's den. But what's the saying about the danger of a wounded animal? "They're playing real well, and we're playing badly,'' said reliever Bob Howry, who like Eyre wore a Sox uniform at the start of his career. "You couldn't be more opposite. But something like that might fire the guys up and help us pull out of it.'' Howry is familiar with the Sox' longtime complex of being the second team in town. "I understand what they're saying,'' he said. "Their attendance is up and they have their rings, but just from having played there, for some reason you're fighting for recognition over there. At this point, they shouldn't feel that way. "The thing with the Cubs is there's such a large number of Cub fans all over the country, whereas the White Sox are more a Chicago team. Everywhere we go, it seems half the fans are Cub fans. It's just the way it is. There's not a lot you can do about that.'' Eyre remembers the Cubs-Sox series not so much for the rivalry but as one in which he got to start a game as a young Sox pitcher. "I started a game [at Wrigley Field], and I didn't understand the full thing about the rivalry,'' he said. "But playing in San Francisco the last few years, I can tell you when we played Oakland, we were going good and they were struggling -- and they kicked our butts. Then they kept winning after that and played about .600 the rest of the season. "You never know. You just never know.''

To: Glenn Petersen who wrote (51873)	5/20/2006 3:51:19 AM
From: stockman_scott	Respond to of 104155

2006 MLB Team Payrolls ________________________________________________________ Based Upon 2006 Season as of April 7, 2006 onestopbaseball.com Rank Team Total Payroll 1 New York Yankees $194,663,079 2 Boston Red Sox $120,099,824 3 Los Angeles Angels $103,472,000 4 Chicago White Sox $102,750,667 5 New York Mets $101,084,963 6 Los Angeles Dodgers $98,447,187 7 Chicago Cubs $94,424,499 8 Houston Astros $92,551,503 9 Atlanta Braves $90,156,876 10 San Francisco Giants $90,056,419 11 St. Louis Cardinals $88,891,371 12 Philadelphia Phillies $88,273,333 13 Seattle Mariners $87,959,833 14 Detroit Tigers $82,612,866 15 Baltimore Orioles $72,585,582 16 Toronto Blue Jays $71,915,000 17 San Diego Padres $69,896,141 18 Texas Rangers $68,228,662 19 Minnesota Twins $63,396,006 20 Washington Nationals $63,143,000 21 Oakland Athletics $62,243,079 22 Cincinnati Reds $60,909,519 23 Arizona Diamondbacks $59,684,226 24 Milwaukee Brewers $57,568,333 25 Cleveland Indians $56,031,500 26 Kansas City Royals $47,294,000 27 Pittsburgh Pirates $46,717,750 28 Colorado Rockies $41,233,000 29 Tampa Bay Devil Rays $35,417,967 30 Florida Marlins $14,998,500

To: Glenn Petersen who wrote (51873)	5/20/2006 4:03:03 AM
From: stockman_scott	Read Replies (1) \| Respond to of 104155

Thome shows Cubs what they missed nwitimes.com CHICAGO - Jim Thome sounded like he was auditioning for the Jimmy Stewart role in a remake of "It's a Wonderful Life." Or maybe he was channeling Lou Gehrig calling himself the luckiest man alive at his Yankee Stadium farewell. Check out a couple of sound bites from the home clubhouse after Friday's 6-1 White Sox over the Cubs and judge for yourself. Thome on facing future Hall of Famer Greg Maddux: "We were very fortunate to get some pitches to hit and did it." Thome, again on Maddux: "He knows what he's doing, he's a winner. We were fortunate we had a good day." Yes, it was another good day in a season full of them for Thome and the White Sox, who may not yet own the town but do own their crosstown rivals. Even Cubs manager Dusty Baker admitted after the Sox's easy win at the Cell that the Cubs, as currently constituted, are overmatched when they take on their neighbors down the Red Line. Thome is as big a reason for that as anybody. He's probably already got the Comeback Player of the Year award in his back pocket, and who's a better MVP candidate in the AL? Though Maddux got him looking in his first at-bat, Thome evened the score by homering -- to left field, no less -- in the fifth inning. That's 17 homers and 41 RBIs and counting for Thome, both tops in the American League heading into Friday night's games. And to think he could be doing all that damage for the Cubs, a team he wanted to play for when he left Cleveland as a free agent in 2002. Thome grew up near Peoria, where the Cubs used to have a Class A farm club, and talked fondly on Friday about going to games at Wrigley Field with his dad. On Friday, he figures he had about 13 assorted family members and friends on hand as part of a sellout crowd of 39,301. Thome is making Sox general manager Kenny Williams look like a genius now. The back and elbow problems that limited Thome to 64 games in a final, unhappy season in Philadelphia are just a fading memory. Thome could have been the talk of the town earlier if he'd been able to talk Cubs general manager Jim Hendry into signing him then, but the Cubs passed. Though Hendry stole the now-sidelined Derrek Lee from the Marlins to plug the hole at first base, you have to wonder how things would have played out had Thome arrived in Chicago sooner. You may wonder, but Thome doesn't. Given the chance to toss an "I told you so" in the Cubs' direction, he took the high road on Friday. "For me, the past is in the past," he said. "That's over with. Things didn't work out." You don't have to tell the Cubs that, Jim. It's the story of their life.

To: Glenn Petersen who wrote (51873)	5/22/2006 3:14:36 AM
From: stockman_scott	Respond to of 104155

Thome haunts Cubs this time around ________________________________________________ With Lee sidelined, Hendry's decision to pass on slugger in 2003 looks bad, writes Phil Rogers By Phil Rogers Columnist The Chicago Tribune Published May 21, 2006 chicagotribune.com <<... When Thome was forced from Cleveland by the downsizing of the payroll and the arrival of young first baseman Travis Hafner, the Cubs were his first choice. He would have been a tough fit for a variety of reasons, including Hee Seop Choi and doubts about his long-term viability in a league not wise enough (yet) to have a designated hitter. Jim Hendry passed on Thome, as he also would on Ivan Rodriguez, Jeff Kent and Carlos Beltran when the Cubs were more attractive than ever to free agents. He hasn't regretted it, either, because Choi was all it would take to get Derrek Lee from Florida after the 2003 season. If Thome were still in the National League, if the White Sox had not given him the parole necessary to escape Philadelphia, he might be having health issues. But things are working out quite nicely for him, and we can't say the same for Hendry...>>

To: Glenn Petersen who wrote (51873)	5/24/2006 1:14:03 AM
From: stockman_scott	Read Replies (1) \| Respond to of 104155

Glenn: I saw the Cubs' President Andy McFail on the Comcast Sportsnet program tonight...He didn't want to make time to do an interactive interview with a group of reporters...he did a short one-on-one interview...Andy McFail may have good intentions but I don't think he has assembled the right management team and the right talent to get the job done...McFail must realize that his legacy is on the line...His team is embarassing for Tribune and for the fans...I have a hunch that the Cubs will see a fall-off in fan support -- fewer people will go to the games, buy the merchandise, and listen to the broadcasts IF the Cubs stay on the current trendline. It's clear that the CEO of Tribune (Dennis FitzSimons) lacks the sense of urgency and focus to position his company to outperform any of their publicly traded peer companies in the media industry. It shouldn't surprise anyone that Tribune's CEO is on the cover of this week's Crain's Chicago Business -- and the story is not positive...Tribune has 97% of the company's foundation money in Tribune stock...Of course the shares of the company are down 47% since early 2004 and the foundation's portfolio is shrinking fast. Some say it's a conflict of interest for the company CEO of Tribune to also be Chairman of the Tribune Foundation (it helps insulate management and makes it tougher for outside shareholders to take over the company). If you look at the Bill & Melinda Gates Foundation (the largest in North America) they have 0% of their assets invested in Microsoft...The well-run foundations always diversify and some even sell off all the stock from their primary sponsors. Anyway, it will be interesting to see how Tribune deals with this new level of scrutiny...The company has UNDERperformed the S&P 500 index (when you consider total return to investors) for the last 15 years...that's a long time for a company to have performance problems. I really think that the Cubs have to get out from under the Tribune umbrella...This is a great time for buyers to approach the company as the team is clearly not as valuable as it was in 2004...Tribune management may be in love with the Cubs but they should do what's right for the team and sell it to a committed private investor (or a private syndicate). Tribune management is running out of time to turn their company around. It's possible that some large Hedge Funds or Private Equity firms could make life very difficult for them...A new owner would most likely break up the company and sell off all non-core assets like the Cubs.