Take Stock in the Cubs

By Matt Motyka in News on Apr 20, 2009 7:30PM

Preferred stock, that is. According to Crain's, prospective Cubs owner Tom Ricketts is looking to finance part of his $900 million purchase by selling shares of the ball club to individual investors. Before you go and liquidate your 401(k), be advised that the shares will come with a hefty $25 million price tag. The idea is that by finding five to 10 ballin' financial backers, Ricketts would lessen the need to take on high-interest bank debt.

So just what would your $25 million buy? Front-row seats to see the Cubbies play and a 6.5% dividend, sans voting rights. The initial investment would be refunded after 15 years, without appreciation (fiscal appreciation... we're sure the Ricketts family would be very thankful). News of the share offering introduces further uncertainty to the timeline of the ball club's sale, which last we heard, is still slated for late May.

Photo illustration by Matt Motyka