Reinsdorf Will Have Long Goodbye While Selling White Sox To Ishbia

Forbes

6 days ago

CHICAGO, ILLINOIS - NOVEMBER 08: Owners Mat Ishbia and Justin Ishbia of the Phoenix Suns look on ... More during the first half between the Chicago Bulls and the Phoenix Suns at the United Center on November 08, 2023 in Chicago, Illinois. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by)
Jerry Reinsdorf is on his way out with the White Sox but set to say a long goodbye to the American League team he has owned for 45 years.
Reinsdorf, 89, has agreed to pass control of the White Sox to current minority owner Justin Ishbia, with the transfer possible in 2029 or as late as 2034. The team announced the agreement on Thursday.
Ishbia, who is a co-owner of the NBA's Phoenix Suns with his brother Mat, will make 'capital infusions' to the Sox in 2025 and '26 to pay down existing debt and 'support ongoing team operations,' according to the team's statement.
Ishbia, 47, is a private equity investor and the founder of Shore Capital Partners. He has a reported net worth in excess of $5 billion and had been rumored as a possible majority owner of the White Sox since he pulled out of a public pursuit of the Minnesota Twins. Mat and their father, Jeff Ishbia, will become significant investors in the franchise.
While the White Sox laid out specifics of the agreement, the deal raises as many questions as it answers. For instance:
— What does Ishbia's presence mean for the team's current pursuit of a new stadium in Chicago's South Loop? That effort has seemed stalled, with Reinsdorf attempting to obtain public funding at the same time the Chicago Bears are seeking to move from Soldier Field.
— What does it mean for the team's long-term future in Chicago? Reinsdorf has said relocation could become a consideration without a new stadium? Ishbia doesn't have the same deep Chicago sports roots as Reinsdorf, who also owns the NBA's Bulls. That could make it easier to consider a move to Nashville or elsewhere if the stadium situation isn't resolved.
— What does the fresh capital mean for the White Sox's rebuilding process. Reinsdorf is not a major player with top free agents — Andrew Benintendi's five-year, $75-million deal is his biggest investment in a player — but Ishbia could green-light pursuit of top free agents, possibly as soon as December.
While there is much to be revealed, the terms of the agreement are relatively clear.
Reinsdorf has the option to remain as the team's controlling partner 'as long as I am able.' Reinsdorf has the option of selling his controlling interest to Ishbia at any point from 2029 through '33, with Ishbia gaining his option to acquire controlling interest after the '34 season.
Financial terms of the deal are not known. Forbes valued the White Sox at $2 billion in March, which ranked 16th among 30 franchise. Reinsdorf and his late partner Eddie Einhorn led a group that purchased the team from Bill Veeck for $19 million in 1981.
Under his stewardship, the White Sox won the World Series in 2005 but have gone to the postseason only three times since then, without winning a series. They set a major-league record with 121 losses last season and entered with a rookie manager (Will Venable) and a payroll of only $74.1 million, which ranks 29th.
Reinsdorf previously has said he has advised his family to sell the White Sox but hold onto the Bulls upon his death. Michael Reinsdorf, his son, is president and chief executive officer of the Bulls. Reinsdorf's son David, who worked in real estate, died at age 51 in 2014.