Tribune exclusive: 'We were just regular parents who were slapped in the face'

The parents of slain teen Hadiya Pendleton talk about her life and death and the issues raised after she died. (Chris Walker/Chicago Tribune)

11:57 p.m. CST, February 20, 2013

Hadiya Pendleton’s parents haven’t had much time to reminisce about their daughter’s life and death before Wednesday, when they sat down for an exclusive interview with the Tribune.

Cleopatra Cowley-Pendleton recalled getting the phone call on Jan. 29 that her 15-year-old daughter had been shot, and rushing to the hospital only to find out it was too late, her daughter was dead.

A whirlwind of activity followed as Hadiya became a national symbol of gun violence and her parents traveled to Washington for President Barack Obama’s State of the Union speech.

“I’m not going to be extremely political, but if I can help someone else not go through what we’ve gone through, then I have to do what I can,” Cowley-Pendleton said. “These are the cards we have been dealt. If these are the shoes I need to walk in, I don’t mind walking in them.”

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In Reversal, Florida to Take Health Law’s Medicaid Expansion

MIAMI — Gov. Rick Scott of Florida reversed himself on Wednesday and announced that he would expand his state’s Medicaid program to cover the poor, becoming the latest — and, perhaps, most prominent — Republican critic of President Obama’s health care law to decide to put it into effect.

It was an about-face for Mr. Scott, a former businessman who entered politics as a critic of Mr. Obama’s health care proposals. Florida was one of the states that sued to try to block the law. After the Supreme Court ruled last year that though the law was constitutional, states could choose not to expand their Medicaid programs to cover the poor, Mr. Scott said that Florida would not expand its programs.

Mr. Scott said Wednesday that he now supported a three-year expansion of Medicaid, through the period that the federal government has agreed to pay the full cost of the expansion, and before some of the costs are shifted to the states.

“While the federal government is committed to paying 100 percent of the cost, I cannot in good conscience deny Floridians that needed access to health care,” Mr. Scott said at a news conference. “We will support a three-year expansion of the Medicaid program under the new health care law as long as the federal government meets their commitment to pay 100 percent of the cost during that time.”

He said there were “no perfect options” when it came to the Medicaid expansion. “To be clear: our options are either having Floridians pay to fund this program in other states while denying health care to our citizens,” he said, “or using federal funding to help some of the poorest in our state with the Medicaid program as we explore other health care reforms.”

Mr. Scott said the state would not create its own insurance exchange to comply with another provision of the law.

His reversal sent ripples through the nation, especially given the change in tone and substance since the summer, when he said he would not create an exchange or expand Medicaid.

“Floridians are interested in jobs and economic growth, a quality education for their children, and keeping the cost of living low,” Mr. Scott said in a statement at the time. “Neither of these major provisions in Obamacare will achieve those goals, and since Florida is legally allowed to opt out, that’s the right decision for our citizens.”

Mr. Scott now joins the Republican governors of Arizona, Michigan, Nevada, New Mexico, North Dakota and Ohio, who have decided to join the Medicaid expansion. Some, like Gov. Jan Brewer of Arizona, were also staunch opponents of Mr. Obama’s overall health care law.

Shortly before his announcement, the governor received word from the federal government that it planned to grant Florida the final waiver needed to privatize Medicaid, a process the state initially undertook as a pilot project. Mr. Scott, who is running for re-election next year, has heavily lobbied for the waiver, arguing that Florida could not expand Medicaid without it.

Mr. Scott’s support of Medicaid expansion is significant, but is far from the last word. The program requires approval from Florida’s Republican-dominated Legislature, which has been averse to expanding Medicaid under the health care law. The Legislature’s two top Republican leaders said that before making a decision they would consider recommendations from a select committee, which has been asked to review the state’s options.

“The Florida Legislature will make the ultimate decision,” Will Weatherford, the state House speaker, said. “I am personally skeptical that this inflexible law will improve the quality of health care in our state and ensure our long-term financial stability.”

Medicaid, which covers three million people in Florida, costs the state $21 billion a year. The expansion would extend coverage to one million more people.

Mr. Scott’s reversal is sure to anger his original conservative supporters.

The governor “was elected because of his principled conservative leadership against Obamacare’s overreach,” said Slade O’Brien, state director for Americans for Prosperity, an influential conservative advocacy organization. “Hopefully our legislative leaders will not follow in Governor Scott’s footsteps, and will reject expansion.”

During his announcement on Wednesday, Mr. Scott said his mother’s recent death and her lifetime struggle to raise five children “with very little money” played a role in his decision.

“Losing someone so close to you puts everything in a new perspective, especially the big decisions,” he said.

Michael Cooper contributed reporting from New York.

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OfficeMax, Office Depot agree to merger

Office Depot to buy Office Max as an attempt to compete with Staples.

Office Depot Inc. and Naperville-based OfficeMax Inc. confirmed Wednesday that they're planning to merge but left some key questions about the deal unanswered.

The all-stock deal calls for Office Depot to issue 2.69 new shares of common stock for each outstanding common share of OfficeMax. But officials declined to say where the newly merged company would be headquartered, who would sit in the CEO seat or even what it would be called.

OfficeMax CEO Ravi Saligram and Office Depot CEO Neil Austrian presented a united front during a Wednesday conference call with analysts, taking turns to explain the specifics of the deal.

"It takes two to tango," Saligram said. "Lo and behold, Neil and I have decided to tango."

The announcement of a merger, which Saligram said would "create a stronger, more global, more efficient competitor," put to rest years of speculation about a deal. The merger would unite the No. 2 company in the stationery and office supplies industry, Boca Raton, Fla.-based Office Depot, with the No. 3 company, OfficeMax, headquartered off Interstate 88.

A merger between the two chains "has made sense for years," Credit Suisse analyst Gary Balter wrote in a note this week.

Market leader Staples also would benefit from a merger, BB&T Capital Markets analyst Anthony Chukumba said.

"Clearly, you can't make this deal work unless you close a bunch of stores," he said. "Store rationalization is long overdue, and Staples will clearly benefit from just having fewer stores to compete with."

OfficeMax, with about 29,000 employees, operates 978 stores, including 10 in the Chicago area. Office Depot has about 39,000 employees and operates 1,675 stores, including seven in the Chicago area.

The two CEOs wouldn't say how many stores would be closed, but Balter has predicted about 600.

If the merger is completed, the company's board would have an equal number of directors chosen by Office Depot and OfficeMax. Based on Wednesday's stock closing price, the deal's value is about $976 million.

The combined company would have $18 billion in sales and achieve $400 million to $600 million in savings over three years, according to company officials.

Office Depot shareholders would own about 54 percent of the company and OfficeMax shareholders 46 percent.

It was not clear, though, whether those stockholders would be satisfied with the deal. One of OfficeMax's largest shareholders, Neuberger Berman, said this week that it would support a deal, depending on the terms.

The deal also is subject to approval by regulatory agencies, including the Federal Trade Commission.

Officials declined to say who would lead the combined business or where it would be located once the "merger of equals" is completed, likely by the end of the year.

"During the appropriate times ... our board will make the right decision," OfficeMax's Saligram said. "Now, we're independent companies, and we've got to go through lots of processes."

Saligram and Austrian will be considered to lead the company, but until a leader is chosen, they will remain in their positions.

"From the time we started talking, Ravi and I have grown very fond of each other. It's very clear we can work well together," Austrian said.

Their proposed partnership didn't begin well. The announcement of the planned merger was buried in an earnings release posted prematurely on the Office Depot website early in the morning, then quickly removed. The companies recovered, and about 8:30 a.m., they issued a joint statement announcing the proposed merger.

The mishap will likely be investigated by stock exchanges and regulatory organizations, according to a Chicago financial attorney.

"I am highly confident that the New York Stock Exchange, the Nasdaq and the Securities and Exchange Commission will be looking very closely at who pulled the trigger, who knew about this, and was this in good faith?" James McGurk said.

McGurk said he was not suggesting wrongdoing.

"When you think about it, you have two boards, lots of investment advisers, lawyers, and deals break down at the last minute. Are there lots of ways it could happen? Sure," he said.

OfficeMax shares closed Wednesday down 91 cents, or 7 percent, at $12.09. Shares of Office Depot closed down 84 cents, or nearly 17 percent, at $4.18.

Reuters contributed.

crshropshire@tribune.com

Twitter @corilyns

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Blackhawks make history in shootout win over Canucks

Three times the Blackhawks broke in alone on Canucks goaltender Cory Schneider during the opening period. Three times they came away empty.

For a while, it appeared that for the first time all season maybe it wouldn't be the Hawks' night as they faced their archrivals Tuesday night at the United Center.

Yeah, forget that.

The Hawks wobbled but came away with a 4-3 shootout victory over the Canucks and in the process made a little history. With their 16th consecutive game to start the season without a regulation loss, the Hawks equaled the Ducks' 2006 league record. At 13-0-3, the Hawks have captured 29 of a possible 32 points.

Andrew Shaw scored the game-winner in the shootout, Marian Hossa had two goals and Patrick Sharp also scored in regulation to provide the offense. Ray Emery earned the victory in goal despite yielding two scores late in the third period to send the game to overtime.

"It's probably not the way we'd want to pull that one out but give credit to our team to respond after they tied it up," Sharp said. "We have to find a way to tighten things up late in games, whether it's to be more disciplined, staying out of the box or whatever it may be. Credit to the guys, we pulled out the win and we can feel good about it."

The loss could prove costly as Hossa took a forearm to the back of the head from the Canucks' Jannik Hansen in the third period and did not return. Hossa suffered a serious concussion during the playoffs last season and was not cleared to play until mid-November. The Hawks were already without the services of defenseman Brent Seabrook, who is day-to-day with a lower-body injury.

Daniel Sedin, Alexander Edler and Kevin Bieksa scored for the Canucks in regulation but it wasn't enough as Schneider couldn't stop Patrick Kane and Shaw in the shootout.

The game had a postseason-like feel with physical play and a heart-pulsing pace that included five breakaways during a span of 7 minutes, 41 seconds in the first.

"There were some big hits out there — some questionable hits on both sides," Sharp said. "That's to be expected when these two teams face each other. There's obviously a lot of bad blood."

Said Hawks coach Joel Quenneville: "It was an amazing pace. When you play Vancouver the pace is as good as there is in the game. It was an exciting hockey game as far as the quantity and quality of chances at both ends."

The Hawks will look to set the record to start a season Friday night when they face the Sharks at the United Center.

"It's a remarkable start," Quenneville said. "Guys should be proud of the achievement and where they're at.

"Especially in a 48-game season, it has put us in a real good spot."

ckuc@tribune.com

Twitter @ChrisKuc

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Police say NY TV anchor threatened wife with death

A New York City TV anchorman issued a death threat against his wife as he was being arrested on charges of attacking her at their Connecticut home, according to a court document released Tuesday.

New York City police, meanwhile, disclosed that they were called 11 times to the couple’s home when they lived in Manhattan. One call resulted in an arrest, but the case was sealed, they said.

In the Connecticut case, a Darien police officer wrote that Rob Morrison, who works for WCBS-TV, “threatened that if he was released from police custody, he would kill his wife.”

The document was offered in Superior Court in Stamford, in support of an order of protection against Morrison. Judge Kenneth Povadator ordered Morrison to stay 100 yards away from Ashley Morrison except when they’re both at work.

She works for “CBS Moneywatch.”

Rob Morrison, 44, was charged Sunday with strangulation, threatening and disorderly conduct. Officers had been called by his mother-in-law to the couple’s home in Darien. They said Morrison had been belligerent toward his wife throughout the night and had wrapped his hands around her neck, leaving red marks.

Morrison’s lawyer, Robert Skovgaard, did not enter a plea at the arraignment. He said afterward a plea would come “at the appropriate time.”

Skovgaard said Monday that the allegations had been exaggerated and on Tuesday he referred to his previous statement.

Outside the courthouse, Morrison said: “I did not choke my wife. I’ve never raised my hands to my wife.”

The NYPD said it was called 11 times between 2004 and 2009 to the couple’s home on West 90th Street. In the 10 cases that did not result in an arrest, the calls involved verbal disputes and harassment, with no allegations of physical violence, the police said.

It was not clear if violence was alleged in the case that was sealed. Skovgaard did not immediately return a call about the New York incidents.

Morrison was released Tuesday on the $ 100,000 bond he posted Sunday. He is due back in court in Stamford on March 26.

Morrison, who has been a combat correspondent and was a reporter and anchor for WNBC-TV, anchors WCBS-TV’s news programs “This Morning” and “News at Noon.” Ashley Morrison worked for Bloomberg Television before joining “CBS MoneyWatch.”

The couple has a young son.

Skovgaard said that because of the order of protection, Morrison “will not be going home tonight.”

___

Associated Press writer Colleen Long in New York contributed to this report.

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Well: No Consensus on Plantar Fasciitis

Phys Ed

Gretchen Reynolds on the science of fitness.

There are more charismatic-sounding sports injuries than plantar fasciitis, like tennis elbow, runner’s knee and turf toe. But there aren’t many that are more common. The condition, characterized by stabbing pain in the heel or arch, sidelines up to 10 percent of all runners, as well as countless soccer, baseball, football and basketball players, golfers, walkers and others from both the recreational and professional ranks. The Lakers star Kobe Bryant, the quarterback Eli Manning, the Olympic marathon runner Ryan Hall and the presidential candidate Mitt Romney all have been stricken.

But while plantar fasciitis is democratic in its epidemiology, its underlying cause remains surprisingly enigmatic. In fact, the mysteries of plantar fasciitis underscore how little is understood, medically, about overuse sports injuries in general and why, as a result, they remain so insidiously difficult to treat.

Experts do agree that plantar fasciitis is, essentially, an irritation of the plantar fascia, a long, skinny rope of tissue that runs along the bottom of the foot, attaching the heel bone to the toes and forming your foot’s arch. When that tissue becomes irritated, you develop pain deep within the heel. The pain is usually most pronounced first thing in the morning, since the fascia tightens while you sleep.

But scientific agreement about the condition and its causes ends about there.

For many years, “most of us who treat plantar fasciitis believed that it involved chronic inflammation” of the fascia, said Dr. Terrence M. Philbin, a board-certified orthopedic surgeon at the Orthopedic Foot and Ankle Center in Westerville, Ohio, who specializes in plantar fasciitis.

It was thought that by running or otherwise repetitively pounding their heels against the ground, people strained the plantar fascia, and the body responded with a complex cascade of inflammatory biochemical processes that resulted in extra blood and fluids flowing to the injury site, as well as enhanced pain sensitivity.

But instead of lasting only a few days and then fading, as acute inflammation usually does, the process can become chronic and create its own problems, causing tissue damage and continuing pain.

This progression is also what experts believed was happening when people developed chronic Achilles tendon pain, tennis elbow or other lingering, overuse injuries.

But when scientists actually biopsied fascia tissue from people with chronic plantar fasciitis, “they did not find much if any inflammation,” Dr. Philbin said. There were virtually none of the cellular markers that characterize that condition.

“Plantar fasciitis does not involve inflammatory cells,” said Dr. Karim Khan, a professor of family practice medicine at the University of British Columbia and editor of The British Journal of Sports Medicine, who has written extensively about overuse sports injuries.

Instead, plantar fasciitis more likely is caused by degeneration or weakening of the tissue. This process probably begins with small tears that occur during activity and that, in normal circumstances, the body simply repairs, strengthening the tissue as it does. That is the point of exercise training.

But sometimes, for unknown reasons, this ongoing tissue damage overwhelms the body’s capacity to respond. The small tears don’t heal. They accumulate. The tissue begins subtly to degenerate, even to shred. It hurts.

By and large, most sports medicine experts now believe that this is how we develop other overuse injuries, like tennis elbow or Achilles tendinopathy, which used to be called tendinitis. The suffix “itis” means inflammation. But since the injury isn’t thought to involve chronic inflammation, its name has changed.

This has not yet happened with plantar fasciitis, and may not, given what a mouthful fasciopathy would be.

The evolving medical opinions about plantar fasciitis matter, beyond nomenclature, though, because treatments depend on causes. At the moment, many physicians rely on injections of cortisone, a steroid that is both a pain reliever and anti-inflammatory, to treat plantar fasciitis. And cortisone shots do reduce the soreness. In a study published last year in BMJ, patients who received cortisone injections reported less heel pain after four months than those whose shots had contained a placebo saline solution.

But whether those benefits will last is unknown, especially if plantar fasciitis is, indeed, degenerative. In studies with people suffering from tennis elbow, another injury that is now considered degenerative, cortisone shots actually slowed tissue healing.

We need similar studies in people with plantar fasciitis, Dr. Khan said. “They have not been done.”

Thankfully, most people who develop plantar fasciitis will recover within a few months without injections or other invasive treatments, Dr. Philbin said, if they simply back off their running mileage somewhat or otherwise rest the foot and stretch the affected tissues. Stretching the plantar fascia, as well as the Achilles tendon, which also attaches to the heel bone, and the hamstring muscles seems to result in less strain on the fascia during activity, meaning less ongoing trauma and, eventually, time for the body to catch up with repairs.

To ensure that you are stretching correctly, Dr. Philbin suggests consulting a physical therapist, after, of course, visiting a sports medicine doctor for a diagnosis. Not all heel or arch pain is plantar fasciitis. And comfort yourself if you do have the condition with the knowledge that Kobe Bryant, Eli Manning and Ryan Hall have all returned to competition and Mr. Romney still runs.

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OfficeMax, Office Depot shares soar on merger talk

Shares of OfficeMax Inc. skyrocketed 21 percent Tuesday on speculation that the Naperville-based office supply retailer is in talks to merge with rival Office Depot Inc.

In the first day of trading after news of a potential deal was reported, OfficeMax shares closed up $2.25, at $13, while Boca Raton, Fla.-based Office Depot stock gained more than 9 percent, closing at $5.02. Archrival and market leader Staples' shares picked up more than 13 percent, closing at $14.65.

Neither OfficeMax nor Office Depot representatives are talking, but observers predict a deal as early as this week.

A marriage between the two is seen a natural progression in a crowded industry facing increased competition from forces such as Internet giant Amazon.com and the likes of big discounters such as Wal-Mart and Costco.

Not long ago, bets were that Staples might link up with OfficeMax. More recently, there was speculation that Office Depot and OfficeMax would team up to compete against Staples.

A merger would initially bump the combined companies ahead of Staples in store count. Together, OfficeMax and Office Depot operate about 2,653 stores, although analysts predict that at least 600 would be shuttered. Staples, which is based in Framingham, Mass., operates about 2,300.

Analysts say that Office Depot and OfficeMax have long lists of good customers and when put together could improve operating efficiencies and, therefore, profit.

"The basic challenge that both companies face is that they play in such a competitive space that they are forever locked in a battle to gain market share," said Tim Calkins, clinical professor of marketing at Northwestern University's Kellogg School of Management. "The truth is, when you have that much competition, it's very hard to maintain good margins; there's just relentless pressure."

Both chains have been working to reduce costs, closing underperforming stores and moving into smaller locations, but even if they team up, some analysts still give Staples the edge.

"We think there are a lot of things that Staples is doing better, that even after (Office Depot and OfficeMax) combine, they might not be able to match Staples immediately and maybe not ever," said Morningstar analyst Liang Feng.

OfficeMax is a little more than a year into a major turnaround plan led by CEO Ravi Saligram, an engineer by training who worked at Leo Burnett and was a top executive at Aramark International before he was tapped to lead OfficeMax in 2010. Saligram is largely credited with leading the company's improved performance last year, with its stock price climbing 99.6 percent, from a low of $4.89 to a high of $9.76, though sales in stores open at least a year remained flat.

Like many retailers faced with competition from the Internet, OfficeMax has aimed to shrink and become more nimble.

"We're beginning to gain some momentum," Saligram told the Tribune in a December interview. "It's a journey, but we'll do it very deliberately."

Industry analysts agree that Saligram's strategy is gaining traction. Credit Suisse analyst Gary Balter predicted Saligram likely would be tapped to lead the combined business.

Saligram said the company has focused on a "three-pronged" approach that began in late 2011 and included turning around the company's core business and continuing to boost its online business and shrink store size.

That included plans to cut 5 million square feet of space, expand product offerings to include janitorial and sanitation supplies, and court the small-business customer in its bricks-and-mortar stores.

"We are obsessed with the small-business customer," Saligram said. "That's our core."

The problem with that approach, according to Feng, is that while small-business customers are most profitable for office suppliers, they are also the most fickle.

That strategy also isn't far from Staples'.

For consumers, little would change after a merger, analysts say. Competition is so fierce for the office supply industry that the threat of higher prices is next to nothing.

But a marriage would help in one regard: Consumers likely struggle to distinguish between the two suppliers, Calkins said.

"The brands are so similar, it's hard for anyone to keep them straight," he said.

The Wall Street Journal reported Monday that the two companies were in advanced merger talks.

OfficeMax reports fourth-quarter earnings Thursday.

Wall Street is expecting sales to decline to $1.75 billion and adjusted earnings per share to drop to 27 cents per share.

crshropshire@tribune.com

Twitter @corilyns

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Rose returns to 5-on-5 drills for first time since injury

A sense of doubt has evolved into a hint of optimism about Derrick Rose's comeback from knee surgery.

The Bulls guard, who last week mentioned the possibility of sitting out the season, appeared to take another step Monday as he participated in 5-on-5 drills during practice.

"He was able to get out there, and it's good," teammate Kirk Hinrich said. "It was something that (we) as a team needed, as far as every individual coming off the (All-Star) break needed to scrimmage a little bit. And I'm sure it was good for (Rose), helpful to ... give him a good gauge of where he's at."

Coach Tom Thibodeau said Rose did "what everyone else did'' and said his participation wasn't out of the ordinary based on the previously stated outlook. The plan all along was to have Rose return to 5-on-5 action after the break.

Rose cited his inability to dunk as the reason he knew he hadn't fully recovered, and Joakim Noah said Rose still wasn't dunking Monday. The Bulls went through three scrimmages of seven to eight minutes, during which Rose ran full-court. It was unclear how much contact Rose endured or how much pressure he put on his left knee.

"He's doing what he should be doing,'' Thibodeau said. "He's focused on his rehab, doing more and more. We just have to be patient. When he's ready, he'll go.''

Thibodeau reiterated how his players need to pick up their intensity after dropping five of the last seven games and six of the last 10. A Rose return would instantly inject life into the 30-22 Bulls, although they've performed admirably at times in his absence while currently holding the Eastern Conference's fifth seed.

Until Rose steps on the court for a game, his teammates have to lean on each other.

"When we're right and we're playing the right way, we've proved that we can beat everybody,'' Noah said. "We've also proved that if we don't come with the right (attitude), don't play together, we can lose to anybody.''

The return of Hinrich to the lineup for Tuesday night's game in New Orleans should provide a boost. The Bulls went 2-5 with Hinrich sidelined by a right elbow infection and committed 15.6 turnovers per game in the losses.

With all due respect to Nate Robinson and his scoring ability, Hinrich runs the offense more efficiently and is a better defender.

"He's a huge part of what we do, and it just feels good to have Kirk back,'' Noah said. "What he brings to our team, it's hard to measure. His defensive intensity, the ball movement ... it's all big.''

The Bulls have lost two straight and take on a 19-34 Hornets team that has won its last two and is 5-5 over the last 10. Four of the Bulls' next six opponents have sub-.500 records, but the Heat (36-14) and Thunder (39-14) are in that stretch too.

"We have to clean some things up offensively and defensively,'' Thibodeau said. "But the biggest challenge is going to be the level of intensity, to get that back.''

vxmcclure@tribune.com

Twitter @vxmcclure23

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National Briefing | South: Abortion Curbs Clear Senate in Arkansas

The State Senate voted 25 to 7 on Monday to ban most abortions 20 weeks into a pregnancy. The measure goes back to the House to consider an amendment that added exceptions for rape and incest. The legislation is based on the belief that fetuses can feel pain 20 weeks into a pregnancy, and is similar to bans in several other states. Opponents say it would require mothers to deliver babies with fatal conditions. Gov. Mike Beebe has said he has constitutional concerns about the proposal but has not said whether he will veto it.

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Cubs seek big payday on TV rights

While the Chicago Cubs and rooftop owners debate proposed stadium billboards, a much more lucrative revenue source is in the team's sights.

Officials confirmed Monday that the team plans to begin renegotiating its broadcast rights agreement with WGN-TV, putting nearly half of its televised games in play after the 2014 season and opening the door to a potentially imminent payday that could help fund proposed Wrigley Field renovations.

The Cubs and WGN-TV have a broadcast partnership that dates to 1948 and a history that is inextricably linked. With baseball rights fees soaring in recent years, due in part to the creation of exclusive team cable channels, there is much at stake for both. Last month, the Los Angeles Dodgers launched their own cable sports network, striking a deal with Time Warner Cable that will pay the team a reported $7 billion to broadcast its games over 25 years.

The Cubs couldn't create their own cable channel until 2020.

For now, Cubs games are split between Comcast SportsNet Chicago and WGN-TV, earning the club about $60 million in annual broadcast rights fees combined, according to sources close to the situation. The CSN deal runs through 2019 and includes the White Sox, Bulls and Blackhawks as partners. Comcast owns about 30 percent of the network.

The White Sox on Monday declined to discuss the future of their broadcast rights.

The Cubs get about $20 million to air 70 games each year on WGN. They have decided to exercise a renegotiation option with the Tribune Co.-owned station, seeking to boost those revenues for the 2015 season and beyond. WGN will have a chance to retain those rights, but other media players are likely to get a shot as well.

"WGN has the ability to retain those rights through 2019, provided that they're willing to pay fair market value," said Cubs spokesman Julian Green. "That's a discussion for WGN and the Cubs to have together."

Based on the $60 million revenue fee for combined broadcast rights, the Cubs get about $400,000 per game, far below the market value potentially set by the Dodgers. Under their reported new deal, the Dodgers will be getting about $280 million per year, or about $1.8 million per game.

"It doesn't surprise me that the Cubs are going to look at all available options out there, including Comcast and everybody else who might be interested in their rights," said Jim Corno, president of Comcast SportsNet Chicago. "Sports content is extremely valuable. It's DVR-proof. Not many people are going to DVR a Dodgers game or a Bulls game or a White Sox game if they can watch it live. The advertiser can buy spots knowing that the chances are very slim that people are not going to watch my commercials because they're going to fast-forward through them."

The Ricketts family inherited the broadcast agreements as part of their 2009 purchase of the Cubs from Tribune Co., owner of the Chicago Tribune and WGN-TV. The $845 million deal — then the highest in Major League Baseball history — included Wrigley Field and a 25 percent stake in Comcast SportsNet Chicago.

Since then, valuations have soared, due in no small part to skyrocketing broadcast rights. Last March, an ownership group led by Chicago financier Mark Walter, CEO of Guggenheim Partners, paid a record $2.15 billion to buy the Dodgers out of bankruptcy. In January, the team announced the launch of its own regional sports network with Time Warner Cable beginning in 2014.

For the Cubs, who are looking to offset a proposed $300 million renovation of 99-year-old Wrigley Field with some new outfield billboards, the broadcast rights issue is a significant opportunity. Experts say there are plenty of options to improve on the current deal, including the possibility of upfront payments that secure partial rights through 2019, and a full standalone network beginning in 2020.

In a statement, Tribune Co. signaled it was willing to consider competing to keep the Cubs on WGN.

"WGN-TV has enjoyed a tremendous relationship with the Cubs and their fans since 1948," Tribune Co. spokesman Gary Weitman said in a statement Monday. "It is a relationship that we are proud of, and one that brings Cubs baseball to fans throughout Chicago and across the country. We're looking forward not only to the upcoming 2013 season, but also to working with the Cubs on baseball broadcasts in the future."

Tribune Co. shows games on both WGN-Ch. 9 and the national cable channel WGN America. While Tribune Co., which is under new management, is looking at programming options for WGN America that include original shows, sources say the company is likely to want to keep the Cubs in its lineup.

Green said the Cubs plan to talk to different parties about where the slate of games currently broadcast by WGN will be seen.

"I think there are a number of options that will certainly present themselves as we talk about this with WGN and other partners throughout the year," the Cubs spokesman said. "But at the end of the day, any final result needs to be a result that benefits the organization and most importantly, the baseball team."

The rise in sports rights fees is being passed along to cable and satellite operators, who in turn are raising monthly fees for customers, whether they watch the games or not. There is some speculation that the Dodgers deal proves to be a tipping point in which cable operators rebel by threatening to drop those sports networks.

Not everyone agrees that the Dodgers deal represents the ceiling of what broadcast rights fees are worth. Corno said that if the Dodgers sale and the new deal for the team's baseball network seemed outrageously expensive now, they likely will seem in retrospect to have been fairly priced, or even a bargain.

"In 25 years, when this deal is up, people will not be talking about how expensive the Dodger deal is," he said. "Because somebody else will have cut a deal in a major market with a major team that will make this deal look like Time Warner got a heck of a deal."

rchannick@tribune.com

Twitter @RobertChannick

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