Latest news with #JerryReinsdorf
Forbes
21 hours ago
- Business
- Forbes
Chicago White Sox Transaction Is A Dispute-In-Waiting
SUN VALLEY, ID - JULY 07: Jerry Reinsdorf, owner of the NBA's Chicago Bulls and the MLB's Chicago ... More White Sox, attends the Allen & Company Sun Valley Conference on July 7, 2015 in Sun Valley, Idaho. Many of the world's wealthiest and most powerful business people from media, finance, and technology attend the annual week-long conference which is in its 33rd year. (Photo by) Today's deal is tomorrow's dispute. Consider that in the context of news that longtime Chicago White Sox owner Jerry Reinsdorf has agreed to a multi-year transaction with Justin Ishbia and family. It paves the way for Ishbia to eventually - potentially - take control of the 125-year old American League baseball franchise. The complex structure will see Ishbia contribute capital in 2025 and 2026. From 2029 through 2033, Reinsdorf will have the option to sell control to Ishbia. And in 2034, Ishbia will have the option to purchase control from Reinsdorf. Terms and valuation were not disclosed, though recent minority transactions valued the team at $1.8 billion. PHOENIX, ARIZONA - FEBRUARY 16: (L-R) Phoenix Suns owners, Justin and Mat Ishbia look on during the ... More first half of the NBA game against the LA Clippers at Footprint Center on February 16, 2023 in Phoenix, Arizona. After becoming a minority owner in 2021, Ishbia further increased his minority interest in February 2025 at the aforementioned $1.8 billion valuation. That move, widely misunderstood in the media, is fundamentally different than this transaction. Then, Ishbia acquired existing shares from other minority owners in search of liquidity. Now, Ishbia's funds will be used to "pay down existing debt and support ongoing team operations". Based on experience, that suggests Ishbia's 2025 and 2026 contributons will be deposited into team coffers in exchange for newly issued shares. The reference to debt begs a question: why do the White Sox have debt that requires a cash infusion to service? Team payroll has shrunk dramatically in recent years, from $193m on Opening Day 2022 to $74 million on Opening Day 2025, per Cot's. Of course, lost revenue from the shortened 2020 season and the team's on-field issues may have had a cascading effect on cash flow. But in sports, debt is often used to fund acquisitions or major capital expenditures. But Reinsdorf has owned the team since 1981, and the White Sox current stadium, Rate field, was built in 1991 and is owned by the State of Illinois. Renovations and administration are paid for by the State. The team's spring training facility, Camelback Ranch–Glendale, is owned by the City of Glendale, Arizona, and their facility in Boca Chica, Dominican Republic, had a second building and more classrooms added back in 2017. CHICAGO, ILLINOIS - AUGUST 21: A general view during the third inning between the Chicago White Sox ... More and the Seattle Mariners at Guaranteed Rate Field on August 21, 2023 in Chicago, Illinois. (Photo by) Reinsdorf has long sought a new stadium. And while there has been little progress despite years of effort, he and connected entities reportedly spent almost $45 million buying vacant lots near the United Center. There's also been turnover in the team's media rights; this season, televised White Sox games moved to the nascent Chicago Sports Network, owned in part by Reinsdorf, which has struggled to gain traction amidst a broader collapse of regional sports networks in the United States. It's been reported that an impetus in the deal is succession planning. But Reinsdorf is 89; given the long runway and the team's statement, let's call this transaction what it is first and foremost: a capital injection. And if the team needed cash, convincing minority owners to provide it at premium valuations can be difficult without the lure of controlling interest. Ishbia agreed, but on the condition that he'd have a path to control, a smart insistence. Without Reinsdorf's consent, the soonest Ishbia can take control is 9 years. That's an eternity, especially in professional sports, where one great season, even one headline, can fundamentally alter franchise values. I still recall a sports banker suggesting in 2020 that the sign-stealing scandal could affect team sales. But there are other demand shocks that can be more permanent. The White Sox are currently in the American League Central division basement. But they have a promising farm system, ranked as high as number 2 by some outlets. What happens if they start winning games? Such a turnaround was a factor in a dispute over another multi-year transaction; Glen Taylor's sale of the Minnesota Timberwolves and Lynx to Alex Rodriguez and Marc Lore (I wrote about its brilliance here). Then there's labour negotiations. Major League Baseball's Collective Bargaining Agreement expires in December, 2026, and uncertainty abounds; a lockout could depress team values, while the installation of a salary cap, which existing owners may pursue, would likely have the opposite impact. ORLANDO, FLORIDA - FEBRUARY 10: Major League Baseball Commissioner Rob Manfred answers questions ... More during an MLB owner's meeting at the Waldorf Astoria on February 10, 2022 in Orlando, Florida. Manfred addressed the ongoing lockout of players, which owners put in place after the league's collective bargaining agreement ended on December 1, 2021. (Photo by) How is Ishbia going to react, in, say, 2032, if 96 year old Reinsdorf signs long-term and/or high-value contracts that will be Ishbia's responsibility to pay? And Reinsdorf's age is (unfortunately) worth highlighting for other reasons. Even the smartest estate planning, the most well crafted wills, can be thrown into chaos, a situation the San Diego Padres and Denver Broncos know all-too-well. What happens if a new owner inherits the White Sox before any of the options vest? And if Reinsdorf can bequeath the team to someone else, can he sell it to someone else? Options are a choice, and as the team's statement said, "there is no assurance that any…future transaction (with Ishbia) will occur". What happens if someone comes along and offers more? Yes, multibillion dollar deals have reams of attorneys, with plenty of experience, to write ironclad, clear agreements to prevent post-transaction disputes. The Timberwolves and Lynx 'Equity Interest Purchase Agreement' stood up to scrutiny, after all, and credit goes to Rodriguez and Lore's attorneys at Wachtell Lipton (Ishbia reportedly chose to use Covington Burling). But there was still a dispute. From experience, it's not atypical, and it usually happens out of the public eye. Resolution through mediation and/or arbitration costs money, it costs time, and it paralyzes the business. That's exacerbated in sports, where decisions on contracts, trades, draft picks, management and more need to happen quickly. There are limited examples of this structure being successful, though perhaps more are coming; David Blitzer has an option to purchase control of the Cleveland Guardians in 2028. MINNEAPOLIS, MINNESOTA - DECEMBER 30: Co-owners Alex Rodriguez (R) and Marc Lore of the Minnesota ... More Timberwolves interact in the second quarter against the Los Angeles Lakers at Target Center on December 30, 2023 in Minneapolis, Minnesota. The Timberwolves defeated the Lakers 108-106. 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) These type of transactions may be good for sellers that want to maintain control. They may be okay for buyers that need time to raise money and/or want access to a scarce asset, especially if it has the best logo in sports. But for everyone else, the answer is murky. Fans wonder if their owner chose the best option, or just the one that kept them in control. Leagues are concerned about governance, especially as deadlines approach, part of the reason MLB insists on a single control person per team. And every stakeholder should be mindful of the impacts from litigation, especially once its publicized. Is future litigation likely here? I don't know. But a lot can change over 9 years, and this type of transaction, especially in professional sports, lights a match.
Chicago Tribune
2 days ago
- Sport
- Chicago Tribune
Letters: Chicago owes residents a clear vision for Soldier Field's future
With the Chicago Fire announcing their departure from Soldier Field and the Chicago Bears intensifying their focus on Arlington Heights, serious questions arise about the future of the city-owned stadium. Representative Kam Buckner recently remarked, 'There was life in Soldier Field before the Chicago Bears, and if, for some reason, they are no longer there, there will be life afterwards.' While the sentiment is optimistic, it warrants a closer examination. The Bears have called Soldier Field home since 1971 — a vastly different era for both the stadium and the city. Today, the landscape of professional sports and entertainment is evolving rapidly. A state-of-the-art, domed stadium in Arlington Heights promises to attract elite sporting events, major concerts, and high-revenue opportunities that Soldier Field may no longer be able to compete with. Chicago owes its residents a clear and transparent vision for what the future holds for Soldier Field without a primary tenant. While regional sporting events and community gatherings like farmers markets have value, they do not match the scale or economic impact of the marquee events the stadium was built to host. Moreover, the financial implications cannot be ignored. What will it cost to maintain the stadium without consistent, large-scale events? How much revenue will the Chicago Park District forfeit? What is the projected impact on local employment and the surrounding economy? This is not a call to support or oppose public funding for a new stadium. Rather, it is a call for a comprehensive understanding of the consequences tied to these decisions. Without a clear plan, Soldier Field risks becoming a costly relic — an iconic venue with no clear purpose. In its current trajectory, Soldier Field may soon be a symbol not of Chicago's legacy, but of its missed making his decision to sell the White Sox, do you know if Jerry Reinsdorf offered the team to the Vatican?Turning around at the far end of our recent scenic boat ride on the Seine, I saw the Statue of Liberty and the Eiffel Tower rising together against a hot blue sky. The statue was a quarter scale model used in the construction of the full size one in New York harbor, given to France back in the day by American expats. What I saw was E Pluribus Unum, out of many one, the motto of the USA since 1776, along with liberty, equality, fraternity, which you see plastered on official buildings all over France, a slogan they've used since the 1790s. Two great tributes to democracy. But now in the age of MAGA and President Donald Trump we have, 'A republic that I am fixing after a long and hard four years,' as he narcissistically claimed during his Memorial Day speech. And, 'People pouring through our borders unchecked. People doing things that are indescribable.' And everybody in Trump world is hitting the talking point about 'unelected judges' thwarting his 'mandate,' as if having to do things by the book is an unfair imposition on a president who got slightly less than half the votes cast in the last election. We need leaders who can really think and plan, who have the long term good of humanity as their goal. What we've got in the White House right now is a mean-spirited man with the attention span of a toddler and a handful of screwball ideas, like his tariff mania, that nothing seems to shake. — John Podulka, Wolverine, Michigan Catastrophically, Big Brother has arrived. Congress must stop Palantir's compilation of all U.S. citizens' private data thus preventing Trump and his tech bros from having all the info on everybody. All that private data being so accessible would simplify their retribution and control exponentially. Any faults, excesses, weaknesses exposed could be easily used for manipulation and destruction. Don't let Social Security and IRS data go to Palantir and rescind the Pentagon and Homeland Security contracts. — Stephen T. White, Buffalo Grove Economic analyst Steve Rattner explained clearly why Trump's 'big, beautiful bill' will increase our deficit by trillions over 10 years. The obvious problem is there are not enough things to slash to pay for the irresponsible tax cuts and spending included in the bill. If Trump cuts Medicaid, law enforcement, environmental protection, medical research, international assistance, education and transportation it will not balance his plan. The resulting debt is trillions of dollars. Our debt is the largest since World War II. During a period of huge tax cuts, from George W. Bush in 2001 through the present, there was gross fiscal irresponsibility inflicted by both Republicans and Democrats. It is unsustainable. This bill is a gimmick to again benefit a few over the many. It will not pay for itself as Trump boasts. The House has already passed the bill along party lines. Our children and grandchildren will be paying for this selfish irresponsibility for generations. — James Frank, Reading, Pennsylvania After reading the opinion piece by two real estate brokers fearing big bad Zillow, I viewed it as two founders fearing further loss of their hold of an industry that is rapidly becoming obsolete. ('New bill could strip Illinois homeowners of choice,' June 2) I sold my father's home by owner on Facebook without a real estate agent. My real estate attorney took care of everything for well under $1,000. I found my recently-purchased condo online without an agent. However, since the condo was listed by an agent, I needed one to open the door, show me around, answer a few basic questions, and email me the documents to make my offer. She was also present for the 90 minute inspection. For all of this 'expertise,' more than $22,000 was shared by my agent, and the seller's agent. All for simply having the listing, and the keys to the property. Tonight, I posted my current home 'for sale by owner' on Facebook. I expect to sell it within one week, and my attorney will handle the heavy lifting once more. The walls of this racket are beginning to fracture. It's well past time!
Yahoo
3 days ago
- Business
- Yahoo
'Bar-B-Cast' on why there's reason to feel bad for White Sox fans after succession plan reveal
(This article was written with the assistance of Castmagic, an AI tool, and reviewed by our editorial team to ensure accuracy. Please reach out to us if you notice any mistakes.) Chicago White Sox fans can expect a significant but somewhat gradual change in the team's ownership, based on the podcast's discussion. From Jake Mintz and Jordan Shusterman of Yahoo Sports' "Baseball-Bar-B-Cast" podcast, here's a summary of what fans should know and what to expect: Jerry Reinsdorf's exit plan is finally official — but not immediate Jerry Reinsdorf, who has owned the White Sox for 45 years, has established a clear succession plan for selling the team. The path is mapped out but doesn't take effect right away. The earliest possible transition to new ownership is 2029, and it could stretch as late as 2034. Advertisement Justin Ishbia, the brother of Phoenix Suns owner Matt Ishbia, is set to become the White Sox's principal owner, according to legal arrangements revealed this week. He already holds a minority stake and will have the option to buy the majority stake from Reinsdorf starting in 2029, or absolutely by 2034. Sorry, White Sox fans, as for now, not much changes The current public messaging is that nothing significant changes for day-to-day fans or for the on-field product until at least 2029. In the short-term, Ishbia will infuse some cash and begin slowly getting involved, but the team's operational control still rests with Reinsdorf. Advertisement Reinsdorf is 89 years old, so it makes sense for him to set up this transition. He's finally making concrete plans for when he's no longer in charge. "He clearly sold this to Ishbia because he likes Ishbia or thinks Ishbia will do a good job or whatever," Mintz said. "That was the pick. He's making the pick, not someone else. That's important to Jerry Reinsdorf. He is lucky here that he has made this choice before he dies. A lot of people, most people die before 89, and I feel bad that some White Sox fans, in fact will die before this ownership group changes hands because the quickest it could change is 2029." Said Shusterman, "If he's doing great and the White Sox are winning, guess what? Jerry's going to keep on owning the team. Now if the White Sox are still losing in 2029? Very possible, considering how deep of a hole they are in, then, I mean, I don't know, maybe he then finally decides, 'All right, your turn, Justin.'" Advertisement While there's no reason to expect rapid on-field changes or increased spending immediately, there is a sense of long-term optimism. The new owner comes from substantial means and chose the White Sox over other available MLB franchises, indicating belief in the franchise's potential. For more of the latest baseball news and debates, tune in to "Baseball-Bar-B-Cast" on Apple, Spotify or YouTube.
Yahoo
3 days ago
- Business
- Yahoo
Why White Sox sale agreement is ‘strange'
Yahoo Sports senior MLB analysts Jordan Shusterman and Jake Mintz react to the team's announcement that Jerry Reinsdorf has agreed to sell a future controlling stake to billionaire Justin Ishbia. Hear the full conversation on the 'Baseball Bar-B-Cast' podcast - and subscribe on Apple Podcasts, Spotify or wherever you listen. View more Video Transcript There is a big, big, big development in White Sox world. Advertisement Jerry Reinsdorf, who has owned the White Sox for 45 years. Hell yeah dude, has officially announced. At least a path to no longer owning the White Sox. So who's the lucky guy that's gonna be owning the White Sox after Jerry Reinsor? His name is Justin Ipia. Justin Ia, the brother of Matt Ishpia, who is the owner of the Phoenix Suns. Justin also involved in that ownership group, but it seems like Justin really wanted to kind of do his own thing. So with all that in mind, this is pretty massive news. Now that the timing here is, is interesting, right? So, the, the details are that from 2029 to 2033. Reinsdorf can sell the team the majority like he has the option to. Advertisement Uh, 2034, it flips and Justin I could just buy it. He can just, if he wants to suddenly buy the White Sox and be in charge of the White Sox, he can do that. But they make very clear, they say nothing is changing until 2029. Like that is a big part of this announcement is they're saying nothing is changing until 2029 other than Justin HBO infusing a bunch of cash to cover debt and start, you know, slowly running team operations. Here's the thing, Jake. Yeah, Jerry Reinsdorf's 89 years old, respectfully. You know, respectfully, 89 or. Respectfully, he's you're saying what you're saying is respectful. Yes, I am saying that respectfully, it is not a surprise that at age 89 Jerry Reinsdorf has finally decided we should probably come up with some sort of plan to to move on here. Advertisement Uh, but it is also a weird thing to get massive news about because normally when we have a, all right, this owner that a lot of fans are tired of is selling the team, there's like a here we go, we did it. But the fact that we do not know when this is going to happen over the next 6 or 7 years, and the fact that it could not happen until 2034 when like Hagan Smith is in his second year as a Dodger, it's like very kind of strange to process.
CBS News
5 days ago
- Business
- CBS News
White Sox fans hope potential ownership change can make them "a great team again"
Amid another dismal season on the South Side, White Sox fans saw a new ray of hope on Thursday, after the team announced a deal that could see owner Jerry Reinsdorf hand over control of the team to a new owner in the next few years. Reinsdorf has reached an agreement with billionaire Justin Ishbia, who is a co-owner of the Phoenix Suns of the NBA and Phoenix Mercury of the WNBA, to sell the controlling stake of the White Sox, although not before 2029. Sox fans said the potential sale could be a very good thing for a team on pace for its third consecutive 100-loss season, after setting the Major League Baseball record for losses in 2024 with a 41-121 record. Tailgating before Thursday's game against the Tigers, White Sox fan Joey Privia said word that Reinsdorf is in the beginning stages of selling the team to Ishbia couldn't come sooner. "They should be taking control today," he said. "The Sox need a boost, and [Reinsdorf] hasn't been giving it any money to boost them up back where they need to be to compete with the other teams in the league." Fans have openly shared their displeasure about Reinsdorf in the stands in recent years, with chants of "Sell The Team" erupting at Rate Field multiple times amid their extended stretch of poor play. Sox fan George Stamas said he hopes, as a sale moves forward, the team stays in Chicago. "Chicago needs two teams. The South Side has had a team over a 100 years, and for the Sox to leave, I think would be a shame if that's the case, but if they keep it local, and they infuse some cash in here, it would be a great team again." With a great team in mind, Stamas said he hopes the potential ownership change also can bring the Sox another World Series championship. The White Sox have reached the playoffs only three times since winning the 2005 World Series, with only three total playoff wins in that time. But fellow fan Amy Monesmith said she thinks it's a good thing that it will be at least a few years before Ishbia can buy the team. "I think it'll be good that it's a slow transition, that there's a couple years before he has the option to buy it outright, so he can kind of see what he does with that time," White Sox fan Amy Monesmith said. Regardless of when Ishbia might take control of the team, Reed Monesmith said changes need to be made within the White Sox organization. "Once we can see some of those changes, and if that makes any difference, then that could make a better purchase later on. Yeah, we'll have to see how things go," he said. Melissa Gullatte explained the changes she'd like to see on the South Side. "I think in leadership, definitely, in the players that we receive, and the interest in Sox as a whole. I think maybe if we get a different leadership, a different group, maybe that would add more interest to the team and get more fans out to the stands," she said. Regardless of when Ishbia might take control of the White Sox, fans are hoping he keeps them in Chicago. There has been speculation in recent years that Reinsdorf could seek to move the team to Nashville, after he met with the mayor of Nashville during Major League Baseball's 2023 winter meetings. In addition to being co-owner of the Suns and Mercury, Ishbia is also a minority owner of the Major League Soccer club Nashville SC, and an alumnus of Vanderbilt University in Nashville.
