Under normal circumstances, the Chicago Cubs signing of baseball star Alfonso Soriano to a $136 million eight-year contract would not mean much to dealmakers beyond the prospects of the Cubs finally ending its World Series losing streak. However, the deal may have sent a signal to potential buyers that the Tribune Co. may not want to sell the Major League Baseball franchise.
Although Tribune is reviewing its various assets, the Soriano signing coupled with the re-signing of third baseman Aramis Ramirez to a $75 million five-year contract indicates that Tribune either is not serious about a sale of the National League Central team as a report from Standard & Poor's suggests, or the company is seeking to buck the common wisdom that a team must scuttle big contracts in order to sell.
Logic dictates that a ballooning payroll may scare away potential buyers who aren't interested in supporting a large salary cost. Even if a new owner is willing to take on the added expense, the players may not fit the strategy that a new owner might seek to implement upon taking ownership of the team.
However, gutting a team's payroll rather than expanding it may not work in order to sell a team. Take the example of the Atlanta Braves. Last December, owner Time Warner put the National League East franchise on the block. In the process, the Braves cut a number of expensive contracts either through trades or simply by letting them lapse. Over the summer, the team even attempted to unload star outfielder Andruw Jones by putting his contract up for waivers, which would allow another team to simply pick up Jones' contract freeing the Braves of it. By the end of the season, the Braves finished third in the National League East standings, ending its record 14-year long playoff appearance streak. Despite the slashed budget, few bidders have surfaced for the team.
Perhaps Tribune is seeking to buck the common wisdom, or maybe the team is not for sale. Either way, the Cubs may finally have a team to win a World Series. —Matthew Wurtzel
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