Congress gives go ahead on offshore drilling
Lawmakers vote to open 8.3 million acres in the Gulf of Mexico to oil and natural gas; field holds estimated 1.26 billion barrels of crude.
--endclickprintexclude--> WASHINGTON (Reuters) -- The House of Representatives voted Friday to open to oil and natural gas drilling about 8.3 million acres in the Gulf of Mexico near the Alabama-Florida offshore border.
The drilling plan was part of a broader bill that will extend billions of dollars in tax credits, including incentives for electricity produced by wind and solar power.
The bill now goes to the Senate, which is expected to vote on the measure this weekend before Congress adjourns for the year.
--endclickprintexclude--> The legislation would also give four Gulf Coast states that have offshore drilling - Texas, Louisiana, Mississippi and Alabama - 37.5 percent of the royalties collected from oil and gas production on federal leases.
The states currently keep only the royalties from production in their waters, which stretch a few miles from shore, and none of the royalties from the oil and gas found in federal waters that extend over 100 miles further.
The House rejected tacking on a provision to the bill that would have blocked energy companies from getting new drilling leases unless they renegotiated faulty contracts issued by the government in the late 1990s that have allowed the companies to avoid paying billions of dollars in royalties.
The drilling plan approved by the House is basically the same one cleared by the Senate earlier this year. The House had favored a much broader plan that would have allowed drilling in most U.
S. Atlantic and Pacific coast waters more than 100 miles from shore, where energy exploration is now banned.
However, House Republicans leaders gave up on their proposal and adopted the less controversial Senate plan in order to get some expanded offshore drilling approved before Democrats take control of the Congress in early January.
Natural gas users, from farmers to manufacturers, backed the drilling bill because they hope more supplies will lower their energy costs. They argued passing the Senate's offshore plan, even if it opens a much smaller area to drilling compared to the House proposal, is better than getting nothing.
"American consumers have waited a long time for any relief from high natural gas prices.
Although much more work remains to be done in order to bring natural gas prices back to an affordable level, we are very pleased that our policy makers have finally taken a step in the right direction" said Bert Kalisch, the American Public Gas Association's president.
NEW YORK (CNNMoney.com) -- The Chicago Cubs are acting very un-Cub like this winter.
That may be good news for the team's long-suffering fans but not for shareholders of newspaper publisher Tribune Co.
Many sportswriters following the team have suggested that a rash of high-profile player signings by the Cubs this winter is a sign that Tribune is getting ready to sell the team.
The Cubs signed outfielder Alfonso Soriano to an eight-year, $136 million deal, gave its free agent third baseman Aramis Ramirez a new five-year, $75 million deal and this week picked up journeyman pitcher Ted Lilly for $40 million over four years.
All told, the team has added about $33 million a year in salaries to a team had an opening day payroll of $94.8 million last year.
"It seems that someone in the Cubs' hierarchy has given (team General Manager Jim) Hendry the green light to offer uncharacteristically large sums of money, knowing that the Tribune Company won't be paying the bills for much longer," wrote Murray Chass, the baseball columnist for The New York Times.
But experts who are involved in the buying and selling of sports franchises say the sportswriters have it completely wrong.
--endclickprintexclude--> An owner looking to sell a team is going to cut payroll to improve the teams' finances, not go on a spending spree in hopes that a winning season will improve the sale price.
One sports investment banker, who is working for a group that is interested in making an offer for the Cubs, says he fully expects a bidding war if Tribune does decide to sell the team.
"It's a trophy property, and it comes on the market once in a lifetime," said the banker, who couldn't give his name because of his clients' interest in the team.
"They're a great brand and they get great attendance." He estimates that the team is worth in excess of $600 million.
But he said Tribune probably won't be able to sell the Cubs for that much because of the heavy spending this offseason.
"It makes it a lot less attractive for a certain class of buyers," he said. "The contracts will make it more difficult to put debt on the deal. It'll cut down on cash flow.
And any prospective buyer wants maximum payroll flexibility. They want to make their own mistakes."
And he said that even if the signings help the Cubs win their first World Series title since 1908, it won't necessarily make the team worth more.
He said that ( ) didn't get a premium when it it sold the Anaheim Angels after the team's 2002 championship.
James Peters, publishing and advertising equity analyst for Standard Poor's, agrees that Tribune has nothing to gain in signing players to expensive, long-term contracts if it is going to sell the team.
"We believe the Tribune Company is trying to make the team more competitive while trying to signal the team is not for sale," said Peters.
Tribune recently said it will complete its review of what assets, if any, it will sell, by the first quarter of 2007. So if Tribune puts the team on the shopping block then, Peters said, it will still be too soon to see if the new players help the team win since the baseball season doesn't start until April.
And Marc Ganis, a Chicago-based sports marketing consultant who has worked on other franchise sales, says the Cubs have only limited financial upside even if they do start winning.
The team had paid attendance of 3.1 million last year - a record high - despite the National League's smallest stadium and worst record. In addition, 94 percent of available tickets wound up being sold, one of the highest sellout rates in baseball.
There is a real feel-good factor around it, Christmas is coming, and it's a whole evening to just watch sport. I'm one of the presenters, but have never worked on it before, although I have been to the after-show party a couple of times and that is a bizarre experience.
You go to the loo and find Boris Becker on one side of you and Franz Beckenbauer on the other, which is just surreal. Golfer Darren Clarke is the favourite to win after his heroics in the Ryder Cup came so soon after the tragic death of his wife. He says he is a bit uncomfortable about the whole thing, but I think he would be a worthy winner.
When he was on the first tee at the K Club, everyone was roaring and that moment transcended sport. It made people realise that there is more to it than just hitting, catching or kicking a ball. There is an irony about cricketer Monty Panesar being one of the front-runners.
Certain people have labelled him the 'world's best finger spinner' but he doesn't get picked for England so the nomination is coming at a really funny time for him. The likes of show jumper Zara Phillips, gymnast Beth Tweddle and darts legend Phil Taylor have enjoyed stellar years and it's nice to see lower profile sports in with a shout. It's a great chance for them to be recognised for their achievements even if they don't win, but who knows, perhaps the British gymnastics community will be mobilised to vote for Beth.
.. English sport in particular hasn't enjoyed a great year, but we will find something to celebrate on Sunday which is a very British thing to do.
Enjoy the show,
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