Reversal of Fortune

Five days ago, just before the Tribune released earnings, Tribune Co. Chairman, President and CEO Dennis FitzSimons said:

"The Cubs are not for sale," FitzSimons said during an interview with WGN-AM. "People will say the Cubs are a non-strategic asset, and that's just not the case. A) the Cubs . . . while not great on-the-field . . . recently, are a tremendous asset. And the original reason the Cubs were bought was because they fit so well with WGN-TV, [WGN] radio and also the superstation, so it makes a lot of sense."

Earnings were released today. They weren't good:

The Chicago-based company said it earned $103 million, or 33 cents per share, compared with $143 million, or 44 cents per share, in the year-ago period.

Analysts polled by Reuters Estimates had on average forecast 36 cents per share, excluding special items.

At least not meeting expectations is not limited to certain segments of the corporation!

What was more interesting was this information. Some of the quote comes from the Trib itself, but some from Crains:

As Tribune pokes around for Internet acquisitions, some analysts want to know whether it will shed other assets to aid its stock price, which is down about 27% from a year ago. Mr. FitzSimons didn't rule anything out.

"Our biggest priority is to get our top line growing," he said. "In the mean time we're going to be very tough on expenses. But if there is a divestiture that really makes sense, that we feel will provide value to shareholders, we'll do it."

A perceived lack of information has some observers anxious. Merrill Lynch analyst Lauren Rich Fine said in a research report Thursday she fears "a seeming reticence on the part of management to try to surface value through either asset sales or more material dividend or share repurchase proclamations."

So, in a span of less than a week we go from "not for sale" to "we'll do it" if it makes sense.

This is gonna happen, Cubs fans. And there's nothing to fear but fear itself. For the first time in a long, long time there will be legitimate hope.

In fact, if you read the statement closely, there's more to fear now from the LACK of a sale. What do you think being "very tough on expenses" means if the Cubs don't win and see ratings and attendance fall off later this year? I can sum that up in two words:

Payroll cuts.

We're now at the point where the NEED for a sale is passing the DESIRE for a sale. Keep the faith and hope it comes quickly.