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The Chicago Cubs won court approval to transfer control of the baseball team to the family of Joe Ricketts, TD Ameritrade Holding Corp.’s founder, one day after the sports franchise filed for bankruptcy.

The team yesterday joined its owner, the newspaper publishing company Tribune Co., in court protection as part of a plan to transfer the Cubs to the Ricketts family. The $845 million in loans to fund the sale is in escrow awaiting the approval of U.S. Bankruptcy Judge Kevin Carey, Bryan Krakauer, a Cubs lawyer, said today in court in Wilmington, Delaware.

“The transaction is ready to close, save for the approval of this court,” Krakauer said.

Using a process previously approved by Carey, Tribune will transfer the Cubs to a new entity controlled by the family. Chicago-based Tribune is to keep a 5 percent stake in the team. Wrigely Field and nearly all other assets of the Cubs will be transferred as part of the deal, according to court papers.

Tribune spokesman Gary Weitman said the transaction should close by the end of the month.

The deal promises to bring Tribune creditors $740 million, according to court records.

JPMorgan Fee

JPMorgan Chase Bank NA, the agent for the lenders funding the transaction, will collect a fee of $6.7 million. Carey said he would allow Tribune to pay the fee sooner than would be typical in most bankruptcy cases because of the unique circumstances of the Cubs sale.

Arrangements for the bankruptcy and the sale in the two months leading up to today’s ruling included notifying more than 9,000 creditors of the team of the transfer and the planned Chapter 11 filing, Krakauer said.

The Cubs case is In re: Chicago National League Ball Club LLC, 09-13496, and the Tribune case is In re Tribune Co., 08- 13141, U.S. Bankruptcy Court, District of Delaware (Wilmington).

(Source: Bloomberg)