IHSA rules Mooseheart basketball players eligible to play

Tribune follows the Mooseheart High School basketball team to the junior varsity game held at Hinckley-Big Rock High School in Hinckley on Dec. 5, 2012. Mooseheart lost 58-51. (Scott Strazzante, Chicago Tribune)









The Illinois High School Association has determined that three Sudanese athletes for Mooseheart High School are eligible to play, but the IHSA also sanctioned the school.


The state athletic governing body's executive director on Nov. 29 deemed Mangisto Deng, Akim Nyang and Makur Puou — all 6 feet, 7 inches and taller — ineligible to play for Mooseheart High School. The IHSA board reviewed the case and found them eligible today, the board president said this evening.

After nearly four hours of deliberation, the IHSA board voted unanimously to declare the students eligible.







The decision reversed IHSA Executive Director Marty Hickman's ruling last month that barred the boys from playing.

But the board also sanctioned Mooseheart by placing it on probation and barring it from participating in the 2013 state basketball tournament until school officials institute training and compliance measures to ensure that the program does not run afoul of recruiting rules in the future, and severs contact with a placement organization at the center of the controversy, African Hoop Opportunities Providing an Education, or AHOPE.


Board President Dan Klett was blunt about the IHSA's view of AHOPE.


When asked what he would say to any other school who might use AHOPE to find basketball players, Klett said, "Don't. We don't believe they are a quality organization."


Klett said AHOPE used the students as pawns, and said Mooseheart didn't do enough to make sure they were complying with IHSA rules.


Mooseheart engaged in recruiting the three basketball players and a fourth Sudanese teen who is a talented cross-country runner for athletic purposes, Hickman had said. IHSA bylaws prohibit athletic recruitment.


Mooseheart, a 99-year-old residential and educational institution for children from unstable environments, disputed Hickman's decision and won a temporary reprieve Tuesday in Kane County Court.


Judge David Akemann granted Mooseheart's request to allow the boys to play until the IHSA board of directors reviewed the case.


Attorneys for the "child city" contended it told the organization placing the boys that Mooseheart would accept Sudanese children regardless of their athletic prowess.


The attorneys also noted that Mooseheart had no contact with the boys until they arrived on its bucolic, 1,000-acre campus in Batavia in May 2011, then waited a full year — at the IHSA's direction — before allowing the teens to compete.


But IHSA attorney David J. Bressler noted that the placement organization specifies that it works with athletes exclusively and that Mooseheart basketball coach Ron Ahrens deliberately called the organization, African Hoop Opportunities Providing an Education, seeking basketball players.


The IHSA board considered Mooseheart's case in a meeting that started about 1 p.m Monday at the organization's Bloomington office.


tgregory@tribune.com





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Andy Serkis plays dual role in ‘Hobbit’ – Gollum and director






LOS ANGELES (Reuters) – Andy Serkis reprises his role as Gollum in “The Hobbit: An Unexpected Journey,” to be released worldwide this week, but his main role this time was as a second unit director, shooting battle sequences in 3D for director Peter Jackson.


The British-born actor, 48, who rose to fame as the obsessive Gollum in Jackson’s “The Lord of the Rings” trilogy, spoke with Reuters about playing the popular CGI character, and his role behind the camera in New Zealand for “The Hobbit.”






Q: Was it nice to get re-acquainted with Gollum after almost 10 years?


A: “Yes, but he’s never been that far away from me. Not a day goes by where I’m not reminded of Gollum by some person in the street who asks me to do his voice or wants to talk to me about him. But because ‘The Hobbit’ has been talked about as a project for many years, I knew that at some point I’d have to reengage with him.”


Q: Martin Freeman (Bilbo Baggins) is new to the franchise and so are many other actors. As a veteran, did they come to you for advice?


A: “It sort of manifested itself more in a way where (as a vet) you understand the scale and scope of what’s required stamina-wise. It’s a different rhythm than most movies. For a lot of the actors, you’re 12,000 miles away from home. It becomes a way of life – getting up at five in the morning, shooting every day, day in day out, for 270 days. The new cast playing the dwarves were carrying incredibly heavy weights in their suits, they sat through hours of make-up every day. So it’s quite challenging from a stamina point of view.”


Q: Playing Gollum was not your only job. You were also doing second unit directing. What did that entail?


A: “Directing was my main job this time – more than playing Gollum. I worked 200 days with a huge team shooting battle sequences, aerials. It was an amazing experience and one which I was very, very thankful to Peter for asking me to do.”


Q: How did that come about?


A: “I’d already started directing short films when we were doing ‘Lord of the Rings,’ then videogame projects. So Peter’s known that I’ve been heading towards directing for a long time. But I always thought my first outing would be a couple of people and a digital camera in the back streets of London somewhere!”


Q: Why do you think Peter let you do it?


A: “I think because the second unit was going to have a lot of principal cast, Peter wanted someone that could take care of the performances and create an atmosphere where the actors felt safe. Obviously I was briefed closely by Peter. But it was a huge challenge – mental, technological. I’d never shot with 3D. Plus the day to day logistics of dealing with such an enormous operation.”


Q: Any plans to direct again?


A: “Just before I headed off to New Zealand to work on ‘The Hobbit,’ I was in the process of setting up (my new company) The Imaginarium (with producer Jonathan Cavendish), which is a performance-capture studio and a development company. We are developing our own slate of film projects, one of which is George Orwell’s ‘Animal Farm.’ It’s going to be the first film that I’ll be directing.”


Q: Where does acting fit in to your newfound career?


A: “At the moment, my trajectory isn’t to think about acting. I’m absolutely devoted to The Imaginarium, our projects and directing. And watching and enabling other actors do their thing in our studio is hugely rewarding. I expect at some point I’ll probably want to go back on stage and do some theater, because I’ve not done theater in 10 years.”


Q: With two more installments of “The Hobbit” still to come over the next few years, you’ll be the voice of Gollum for fans for many more years. Are your kids proud or embarrassed when you’re asked do his distinctive raspy voice?


A: “I’m probably running out of credits in terms of my kids enjoying me do the Gollum voice for others. Especially my older ones (Ruby, 14, Sonny, 12). It was cool when they were younger. But my youngest (Louie, 8) absolutely revels in it. He would have me do it all day long for his friends at school. So I still have great currency there!”


(Reporting By Zorianna Kit; Editing by Jill Serjeant and Nick Zieminski)


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Rate of Childhood Obesity Falls in Several Cities


PHILADELPHIA — After decades of rising childhood obesity rates, several American cities are reporting their first declines.


The trend has emerged in big cities like New York and Los Angeles, as well as smaller places like Anchorage, Alaska, and Kearney, Neb. The state of Mississippi has also registered a drop, but only among white students.


“It’s been nothing but bad news for 30 years, so the fact that we have any good news is a big story,” said Dr. Thomas Farley, the health commissioner in New York City, which reported a 5.5 percent decline in the number of obese schoolchildren from 2007 to 2011.


The drops are small, just 5 percent here in Philadelphia and 3 percent in Los Angeles. But experts say they are significant because they offer the first indication that the obesity epidemic, one of the nation’s most intractable health problems, may actually be reversing course.


The first dips — noted in a September report by the Robert Wood Johnson Foundation — were so surprising that some researchers did not believe them.


Deanna M. Hoelscher, a researcher at the University of Texas, who in 2010 recorded one of the earliest declines — among mostly poor Hispanic fourth graders in the El Paso area — did a double-take. “We reran the numbers a couple of times,” she said. “I kept saying, ‘Will you please check that again for me?’ ”


Researchers say they are not sure what is behind the declines. They may be an early sign of a national shift that is visible only in cities that routinely measure the height and weight of schoolchildren. The decline in Los Angeles, for instance, was for fifth, seventh and ninth graders — the grades that are measured each year — between 2005 and 2010. Nor is it clear whether the drops have more to do with fewer obese children entering school or currently enrolled children losing weight. But researchers note that declines occurred in cities that have had obesity reduction policies in place for a number of years.


Though obesity is now part of the national conversation, with aggressive advertising campaigns in major cities and a push by Michelle Obama, many scientists doubt that anti-obesity programs actually work. Individual efforts like one-time exercise programs have rarely produced results. Researchers say that it will take a broad set of policies applied systematically to effectively reverse the trend, a conclusion underscored by an Institute of Medicine report released in May.


Philadelphia has undertaken a broad assault on childhood obesity for years. Sugary drinks like sweetened iced tea, fruit punch and sports drinks started to disappear from school vending machines in 2004. A year later, new snack guidelines set calorie and fat limits, which reduced the size of snack foods like potato chips to single servings. By 2009, deep fryers were gone from cafeterias and whole milk had been replaced by one percent and skim.


Change has been slow. Schools made money on sugary drinks, and some set up rogue drink machines that had to be hunted down. Deep fat fryers, favored by school administrators who did not want to lose popular items like French fries, were unplugged only after Wayne T. Grasela, the head of food services for the school district, stopped buying oil to fill them.


But the message seems to be getting through, even if acting on it is daunting. Josh Monserrat, an eighth grader at John Welsh Elementary, uses words like “carbs,” and “portion size.” He is part of a student group that promotes healthy eating. He has even dressed as an orange to try to get other children to eat better. Still, he struggles with his own weight. He is 5-foot-3 but weighed nearly 200 pounds at his last doctor’s visit.


“I was thinking, ‘Wow, I’m obese for my age,’ ” said Josh, who is 13. “I set a goal for myself to lose 50 pounds.”


Nationally, about 17 percent of children under 20 are obese, or about 12.5 million people, according to the Centers for Disease Control and Prevention, which defines childhood obesity as a body mass index at or above the 95th percentile for children of the same age and sex. That rate, which has tripled since 1980, has leveled off in recent years but has remained at historical highs, and public health experts warn that it could bring long-term health risks.


Obese children are more likely to be obese as adults, creating a higher risk of heart disease and stroke. The American Cancer Society says that being overweight or obese is the culprit in one of seven cancer deaths. Diabetes in children is up by a fifth since 2000, according to federal data.


“I’m deeply worried about it,” said Francis S. Collins, the director of the National Institutes of Health, who added that obesity is “almost certain to result in a serious downturn in longevity based on the risks people are taking on.”


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McDonald's sales rebound in November









McDonald’s took Wall Street by surprise Monday morning, with a November same store sales report that beat expectations and showed particular strength in the U.S. business.

The news follows a weak performance in October that had some investors speculating about the future of the world’s largest restaurant company.

The Oak Brook-based burger giant reported U.S. same store sales up 2.5 percent on the strength of its breakfast business, value offerings, beverages and limited-time offers like the cheddar bacon onion sandwich. In Europe, same store sales grew 1.4 percent, and 0.6 percent in the chain’s Asia/Pacific, Middle East and Africa division.

Overall, same store sales increased 2.4 percent, beating expectations of a roughly flat performance. Company stock rose nearly 1 percent in early morning trading, to $89.35.

"We are strengthening our focus on the global priorities that are most impactful to our customers -- optimizing our menu, modernizing the customer experience and broadening accessibility to our brand to move our business forward," McDonald's CEO Don Thompson said in a statement.

While the sales report is likely to be a boon for the burger giant, investors don’t expect company performance to return to normal levels until early 2013. Winter is typically the slow period for fast food chains, with summer typically being the busiest season.

Baird analyst David Tarantino raised his fourth quarter earnings estimate by a penny Monday morning following the sales announcement. He wrote that while company performance "could remain soft" through the first quarter of 2013, "the November sales report supports our thesis that McDonald's can achieve better performance in 2013 as a whole, with results aided by planned initiatives (including increased emphasis on value plus premium offerings across markets), fewer cost pressures, and less negative currency translation."

The chain has taken a tough stance on slipping U.S. sales. The company’s October sales, which slipped 2.2 percent, marked the first decline in more than nine years. Days later, McDonald’s said U.S. president Jan Fields had resigned and would be replaced by Jeff Stratton.

eyork@tribune.com | Twitter: @emilyyork

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RIM teases BlackBerry 10 launch with image of first BB10 smartphone






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Daley nephew due in court Monday









Former Mayor Richard M. Daley’s nephew is expected in court Monday morning after being indicted for involuntary manslaughter in the 2004 death of a northwest suburban man in a drunken fight on the city’s Near North Side.


Richard J. Vanecko is scheduled to appear in the presiding judge’s room at the Leighton Criminal Court Building at 26th Street and California Avenue at 9:30 a.m., immediately following the normal judge-assignment call.


Cook County Judge Michael Toomin, who earlier this year appointed special prosecutor Dan Webb to investigate the death of David Koschman, will take over the bench to oversee Vanecko’s judge assignment, which will be determined by a “randomizer” machine that will arbitrarily assign the case to one of the courthouse’s 32 felony courtrooms.





Vanecko will then appear before the designated judge upstairs, where he is expected to enter a plea of not guilty and be released on a pre-negotiated bond of $100,000.


Typically, dozens of judge assignments are done by the “randomizer” machine before court begins. But in Vanecko’s case, Toomin will have the device with him on the bench to avoid any allegations of unfairness, according to courthouse sources. 


Both sides have the option to ask for a different judge if there are conflicts of interest, something that could arise since Vanecko is such a high-profile defendant and there have been allegations of police and prosecutorial misconduct surrounding the case.


Vanecko, who currently resides in Costa Mesa, Calif., turned himself in to authorities in Chicago on Friday afternoon and later posed for a mug shot in a jacket and tie.


Last week, a special grand jury found that Vanecko, who is the son of former Mayor Richard M. Daley’s sister, Mary, “recklessly performed acts which were likely to cause great bodily harm to another.”


Koschman, 21, of Mount Prospect, had been drinking in the Rush Street nightlife district early on April 24, 2004, when he and his friends quarreled with a group that included Vanecko. During the altercation, Koschman was knocked to the street, hitting the back of his head on the pavement. He died 11 days later.


Police at the time said Koschman was the aggressor and closed the case without charges. In announcing the indictment, Webb, a former U.S. attorney, noted that at 6-foot-3 and 230 pounds, Vanecko towered over Koschman, who was 5-foot-5 and 125 pounds.


Webb also said the grand jury is still probing how the original investigation was conducted.


Vanecko’s attorneys issued a statement last week saying they were disappointed by the indictment and noted that at the time of the confrontation, Koschman’s blood-alcohol content was three times the legal limit for a motorist.


Koschman “was clearly acting in an unprovoked, physically aggressive manner,” Vanecko’s legal team said. “We are confident that when all the facts are aired in a court of law, the trier of fact will find Mr. Vanecko not guilty.”


If convicted of involuntary manslaughter, Vanecko faces from probation up to 5 years in prison. 


jmeisner@tribune.com


gknue@tribune.com



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Mother of News Corp Chairman Rupert Murdoch dies at 103






MELBOURNE/NEW YORK (Reuters) – Dame Elisabeth Murdoch, matriarch of the Murdoch media empire and mother of News Corp Chairman Rupert Murdoch, was both an inspiration and outspoken critic of her tumultuous family and balm to some of its excesses.


A philanthropist and tireless charity worker regarded for years in her homeland as a national treasure, Murdoch died on Wednesday night at her sprawling home outside Melbourne, a city she loved for its genteel culture, aged 103.






Murdoch was a uniting force in both the community and within her family, where she would often voice concerns to her publisher son over his brand of journalism, including racy exclusives on celebrities and partisan stance on politics.


“We don’t always see eye-to-eye or agree, but we do respect each other’s opinions and I think that’s important,” she told Australian television ahead of her 100th birthday in 2009.


“I think the kind of journalism and the tremendous invasion of people’s privacy, I don’t approve of that,” she said.


Murdoch’s death comes at the end of a tumultuous year for News Corp, with the company under attack over phone hacking in Britain and amid tensions among those in line to one day replace Rupert Murdoch at the head of the company.


Harold Mitchell, a major figure in Australia‘s advertising industry who has done charity work alongside Murdoch, said Dame Elisabeth was deeply respected by her family and the community.


“I always found she was a great force in binding together many parts of the community and all people within her influence, and I’m sure she had that same affect on her family,” Mitchell told Reuters.


Equal to the zeal with which the Murdoch publishing empire has defended its news gathering methods, the far-flung Murdoch clan have also worked hard to mask their own differences, including rivalries between Rupert Murdoch’s daughter, Elisabeth, and sons James and Lachlan, over the company’s leadership and direction.


Elisabeth, 44, a prominent television businesswoman, had been critical of her brother James’s stubbornness during the phone hacking scandal, the New Yorker magazine reported this month, while Lachlan always bristled over his father’s close supervision and left News Corp in 2005.


“He moved to Australia, and although he remains on the News Corp board, he has busied himself with his own media investments. James, the youngest, became the new heir, but he has always resented that Lachlan was their father’s favorite,” the magazine said.


FAMILY FOCUS


Dame Elisabeth Murdoch, with her forthright but graceful criticism and focus on family, was always able to draw warring family members back together, including after Rupert Murdoch’s much publicized divorce of Anna Murdoch and marriage to Wendi Deng in 1999.


Murdoch, who would have been 104 in January, is survived by 77 direct descendants, including three children Anne Kantor, Janet Calvert-Jones and Rupert. Her fourth and eldest child, Helen Handbury, died in 2004.


“Throughout her life, our mother demonstrated the very best qualities of true public service,” Rupert said in a statement issued by News Ltd, the Australian arm of News Corp.


“Her energy and personal commitment made our country a more hopeful place and she will be missed by many.”


Murdoch, 82, remained close to his mother despite leading a global media empire that required him to split his time between Australia, Asia, Britain, New York, and Los Angeles, among other places.


A young Melbourne socialite, Murdoch was 19 when she married Rupert’s father, Keith, in 1928. When Keith Murdoch died in 1952, Rupert took over his father’s newspaper business and set about turning it into a global media empire.


Elisabeth Murdoch was a prominent philanthropist, serving on and forming numerous institutes that promoted medical research, the arts and social welfare, and she was a supporter of more than 100 charities and organizations.


Her work earned her civil honours in both her native Australia and Britain, and she was made a Dame in 1963 for her work with a Melbourne hospital.


She believed that charity work involved being involved with people, and was more than just giving money.


She also decried the world’s obsession with materialism and wealth at the expense of personal relationships.


“I think it’s become a rather materialistic age, that worries me. Money seems to be so enormously important and I don’t think wealth creates happiness,” she told a television interviewer.


“I think it’s personal relationships which matter. And I think there’s just a bit too much materialism and it’s not good for the young.”


While her son remains a divisive figure, Elisabeth Murdoch was widely admired in Australia and her death attracted tributes from across the political divide.


“Her example of kindness, humility and grace was constant. She was not only generous, she led others to generosity,” Prime Minister Julia Gillard said as she offered condolences to the Murdoch family.


(Reporting by Adam Kerlin in New York and James Grubel and Rob Taylor in Canberra; Editing by Alex Richardson)


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A Breakthrough Against Leukemia Using Altered T-Cells





PHILIPSBURG, Pa. — Emma Whitehead has been bounding around the house lately, practicing somersaults and rugby-style tumbles that make her parents wince.




It is hard to believe, but last spring Emma, then 6, was near death from leukemia. She had relapsed twice after chemotherapy, and doctors had run out of options.


Desperate to save her, her parents sought an experimental treatment at the Children’s Hospital of Philadelphia, one that had never before been tried in a child, or in anyone with the type of leukemia Emma had. The experiment, in April, used a disabled form of the virus that causes AIDS to reprogram Emma’s immune system genetically to kill cancer cells.


The treatment very nearly killed her. But she emerged from it cancer-free, and about seven months later is still in complete remission. She is the first child and one of the first humans ever in whom new techniques have achieved a long-sought goal — giving a patient’s own immune system the lasting ability to fight cancer.


Emma had been ill with acute lymphoblastic leukemia since 2010, when she was 5, said her parents, Kari and Tom. She is their only child.


She is among just a dozen patients with advanced leukemia to have received the experimental treatment, which was developed at the University of Pennsylvania. Similar approaches are also being tried at other centers, including the National Cancer Institute and Memorial Sloan-Kettering Cancer Center in New York.


“Our goal is to have a cure, but we can’t say that word,” said Dr. Carl June, who leads the research team at the University of Pennsylvania. He hopes the new treatment will eventually replace bone-marrow transplantation, an even more arduous, risky and expensive procedure that is now the last hope when other treatments fail in leukemia and related diseases.


Three adults with chronic leukemia treated at the University of Pennsylvania have also had complete remissions, with no signs of disease; two of them have been well for more than two years, said Dr. David Porter. Four adults improved but did not have full remissions, and one was treated too recently to evaluate. A child improved and then relapsed. In two adults, the treatment did not work at all. The Pennsylvania researchers were presenting their results on Sunday and Monday in Atlanta at a meeting of the American Society of Hematology.


Despite the mixed results, cancer experts not involved with the research say it has tremendous promise, because even in this early phase of testing it has worked in seemingly hopeless cases. “I think this is a major breakthrough,” said Dr. Ivan Borrello, a cancer expert and associate professor of medicine at the Johns Hopkins University School of Medicine.


Dr. John Wagner, the director of pediatric blood and marrow transplantation at the University of Minnesota, called the Pennsylvania results “phenomenal” and said they were “what we’ve all been working and hoping for but not seeing to this extent.”


A major drug company, Novartis, is betting on the Pennsylvania team and has committed $20 million to building a research center on the university’s campus to bring the treatment to market.


HervĂ© Hoppenot, the president of Novartis Oncology, called the research “fantastic” and said it had the potential — if the early results held up — to revolutionize the treatment of leukemia and related blood cancers. Researchers say the same approach, reprogramming the patient’s immune system, may also eventually be used against tumors like breast and prostate cancer.


To perform the treatment, doctors remove millions of the patient’s T-cells — a type of white blood cell — and insert new genes that enable the T-cells to kill cancer cells. The technique employs a disabled form of H.I.V. because it is very good at carrying genetic material into T-cells. The new genes program the T-cells to attack B-cells, a normal part of the immune system that turn malignant in leukemia.


The altered T-cells — called chimeric antigen receptor cells — are then dripped back into the patient’s veins, and if all goes well they multiply and start destroying the cancer.


The T-cells home in on a protein called CD-19 that is found on the surface of most B-cells, whether they are healthy or malignant.


A sign that the treatment is working is that the patient becomes terribly ill, with raging fevers and chills — a reaction that oncologists call “shake and bake,” Dr. June said. Its medical name is cytokine-release syndrome, or cytokine storm, referring to the natural chemicals that pour out of cells in the immune system as they are being activated, causing fevers and other symptoms. The storm can also flood the lungs and cause perilous drops in blood pressure — effects that nearly killed Emma.


Steroids sometimes ease the reaction, but they did not help Emma. Her temperature hit 105. She wound up on a ventilator, unconscious and swollen almost beyond recognition, surrounded by friends and family who had come to say goodbye.


But at the 11th hour, a battery of blood tests gave the researchers a clue as to what might help save Emma: her level of one of the cytokines, interleukin-6 or IL-6, had shot up a thousandfold. Doctors had never seen such a spike before and thought it might be what was making her so sick.


Dr. June knew that a drug could lower IL-6 — his daughter takes it for rheumatoid arthritis. It had never been used for a crisis like Emma’s, but there was little to lose. Her oncologist, Dr. Stephan A. Grupp, ordered the drug. The response, he said, was “amazing.”


Within hours, Emma began to stabilize. She woke up a week later, on May 2, the day she turned 7; the intensive-care staff sang “Happy Birthday.”


Since then, the research team has used the same drug, tocilizumab, in several other patients.


In patients with lasting remissions after the treatment, the altered T-cells persist in the bloodstream, though in smaller numbers than when they were fighting the disease. Some patients have had the cells for years.


Dr. Michel Sadelain, who conducts similar studies at the Sloan-Kettering Institute, said: “These T-cells are living drugs. With a pill, you take it, it’s eliminated from your body and you have to take it again.” But T-cells, he said, “could potentially be given only once, maybe only once or twice or three times.”


The Pennsylvania researchers said they were surprised to find any big drug company interested in their work, because a new batch of T-cells must be created for each patient — a far cry from the familiar commercial strategy of developing products like Viagra or cholesterol medicines, in which millions of people take the same drug.


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WGN America may be channel of change for Tribune Co.









On Sunday night, WGN-Ch. 9 will air "Bozo's Circus: The Lost Tape," a 1971 episode that an alert archivist discovered after four decades of gathering dust.


At the same time, WGN America, the station's national cable counterpart, will beam reruns of the sitcom "How I Met Your Mother" to its 75 million subscribers across the country.


Part of Tribune Co.'s future may rest with programming decisions like that.





Poised to emerge from its lengthy bankruptcy, the Chicago-based media company is expected to enter the new year with its holdings intact, a clean balance sheet and a plan to sell everything eventually.


The expected decision to name television executive Peter Liguori as Tribune Co.'s chief executive — he was the architect of basic cable powerhouse FX's first-run success — points to unlocking the value of the 34-year-old superstation as integral to a profitable exit strategy for the new owners of Tribune Co.


A source close to the situation told the Tribune that Liguori sees WGN America as an undervalued cable network with tremendous potential, if it gets the programming investment required. Developing the channel will "absolutely be a focus" after Liguori joins the company, which could happen within weeks.


"I'm sure that's the plan," said Derek Baine, a senior media analyst with SNL Kagan. "It all comes down to how much money you're investing in programming to get the viewers."


The new owners, senior creditors Oaktree Capital Management, Angelo, Gordon & Co. and JPMorgan Chase, have made it clear that monetizing Tribune Co.'s publishing, broadcasting and other holdings after a four-year slog through Chapter 11 is a matter of time. The process will likely challenge the maxim that the whole of Tribune Co. — estimated to be worth $4.5 billion post-emergence — is more than the sum of its parts. That's especially true when one of those parts is national cable channel WGN America, a low-rated repository of Cubs games and reruns, whose upside potential may dwarf all of the other assets combined.


Broadcasting assets, including 23 television stations, WGN-AM 720, CLTV and WGN America, represent the core profit center and account for $2.85 billion of Tribune Co.'s value, according to financial adviser Lazard. Tribune's eight daily newspapers, including the Chicago Tribune, are worth $623 million, and other strategic assets, such as stakes in CareerBuilder and Food Network, are valued at $2.26 billion, according to a 2012 report by Lazard.


The value of the TV stations, including KTLA-TV in Los Angeles and WPIX-TV in New York, should benefit from an improving appetite for acquisitions, according to analysts. But WGN America, with the help of a few hit shows and some rebranding, could be the sleeping giant on the books. Turner Broadcasting's TBS, for example, has five times the audience and seven times the cash flow of WGN America and carries a distinct brand. It is worth more than twice that of the entire Tribune Co.


Liguori's success at FX Networks could well be the blueprint. After joining what was a small basic cable channel in 1998, Liguori was elevated to CEO in 2001 and transformed the network by offering original programming such as "The Shield," "Nip/Tuck" and "Rescue Me," building ratings and revenues in the process.


"You just need a couple of hit shows and then you can start building a schedule around them," Baine said. "A lot of these cable networks, you take one hit show and get people hooked on it and then you can stick another one in the time slot right behind it and start building on that."


Last year, FX had a cash flow of nearly $553 million on net revenue of more than $1 billion, making the network worth nearly $8 billion, Baine said.


WGN America is often compared with TBS to illustrate the upside, and the divergent paths the two original superstations have taken as the cable network model — a dual revenue stream of affiliate fees and advertising dollars — has evolved over the last two decades.


Both WGN and WTBS were uploaded to satellite in the late '70s, filling the programming void for distant cable systems with local baseball and "Andy Griffith" reruns. TBS became a division of Time Warner in 1996 and transformed into a full-fledged cable network, shelving old reruns for off-network sitcoms, benching the Atlanta Braves for national MLB coverage and rolling out first-run programming featuring everything from Tyler Perry to Conan O'Brien. The network dropped "superstation" and rebranded itself with slogans such as "very funny."


One advantage FX, which is part of Rupert Murdoch's News Corp., and TBS have enjoyed is the connection to a media empire with programming prowess and deep pockets.


Meanwhile, WGN has clung to the vestiges of its lower-cost superstation model, meaning cable and satellite systems can't insert local commercials and must pay copyright fees for the programming to the government. Content shifts between local and national, with Cubs baseball and Chicago news still broadcast across the country. There is a dearth of first-run programming, and the schedule is dotted with such fillers as "In the Heat of the Night" and "Walker: Texas Ranger." Even Andy Griffith remains in the mix with "Matlock," part of a block of programming to cover the "WGN Morning News," which is not broadcast nationally.


Not surprisingly, WGN America lags TBS and FX in ratings, revenue and distribution.


TBS is ranked 11th, FX is 13th and WGN America 40th in average viewership among cable networks through November, according to Nielsen.


Of the more than 114 million homes receiving cable in the U.S., TBS reaches 99.7 million, FX 97.9 million and WGN America 75 million, according to Nielsen. One of the biggest holes in WGN's coverage area is New York City, where the station has never quite found its way into the cable lineup. Nationally, TBS and FX are included in the basic packages for Dish Network and DirecTV, while WGN America is relegated to the second or third tier.





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Software guru McAfee did not have heart attack: lawyer






GUATEMALA CITY (Reuters) – Software pioneer John McAfee did not have a heart attack in Guatemala as originally thought, but is suffering from stress and hypertension, his lawyer Telesforo Guerra said on Thursday.


“He never had a heart attack. Nothing like that,” Guerra said in Guatemala City. “I’m not a doctor. I’m just telling you what the doctors told me. He was suffering from stress, hypertension and tachycardia (an abnormally rapid heartbeat).”






After being rushed to a hospital in an ambulance on Thursday, McAfee, 67, was later spirited out of the building out of sight of reporters and into a police patrol car, Guerra said.


McAfee, who is fighting deportation from Guatemala, was detained on Wednesday after crossing illegally into the country from neighboring Belize. Police in Belize want to question McAfee in connection with his neighbor’s murder.


Earlier, Guerra said McAfee had suffered two mild heart attacks in the morning.


(Reporting by Lomi Kriel; Editing by Stacey Joyce)


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