Latest news with #JustinIshbia
New York Times
28-05-2025
- Business
- New York Times
Twins making ‘progress' on sale of club, Pohlads sticking to $1.7 billion price: Source
Though the Minnesota Twins are making progress in finding potential buyers, the Pohlad family remains firm in its desire for a $1.7 billion price tag, potentially extending the process. A person briefed on the Twins' pivot since Chicago billionaire Justin Ishbia abandoned his bid to buy the club in late January described the team's headway as 'good' and the potential backers as 'high quality parties,' saying the groups included multiple anchor/lead investors. Advertisement But with the Twins sticking to their asking price and concerns from interested parties about the team's future revenues, the end game remains fluid more than 7 1/2 months after the Pohlads announced they would explore selling the team. New York City-based capital market company Allen & Company is handling the sale of the club, which Carl Pohlad bought from Calvin Griffith for $44 million in 1984. In March, the Twins were estimated to be worth between $1.5 billion and $1.7 billion by Forbes and Sportico, respectively. 'There's no deadline,' the source said Tuesday. 'We're dealing with multiple parties, and whoever gets to the finish line first will be the winning party. (The Pohlads are) prepared to wait until the right deal comes along.' A winning bid could materialize at any time. The team was confident enough in its worth in March to deem an interested party's $1.5 billion valuation as a non-starter. Still, multiple people with knowledge of the sale process said potential buyers noted several concerns. First and foremost is the potential for an MLB owners lockout after the 2026 season concludes, a disruption that would immediately impact revenue for a new owner. Those sources also noted the loss of broadcast revenue associated with the team moving on from FanDuel Network, to Twins TV, an MLB-based product, after its most recent contract expired. Another concern: the $425 million-plus of debt accrued during the Pohlad's tenure as owners, according to multiple people briefed on the sale process, which is one of the highest figures among MLB's 30 teams. Throughout the process, the Twins have had plenty of limited partners who have shown interest in purchasing the club, a source briefed on the matter said. Limited partners can provide significant funding for some ownership groups but rarely have control over a club. Attracting anchors or lead investors, to front the smaller groups of investors, a requirement of any sale, is taking time. Advertisement In January, one person involved in the process predicted the Twins would pick a winning bidder by Opening Day. Then Ishbia bolted for the White Sox, reportedly increasing his stake in the club from 5 percent to 35 percent. 'We sort of rebooted the process and a number of people came in that were sitting on the sidelines,' they said. 'We're making good progress with multiple interested parties. Everyone we're talking with now has the capability of transacting without finding a money source. … Anyone who buys a baseball club today is doing it with the full knowledge that there'll be a (collective bargaining agreement) negotiation in another year, with some uncertainty around what the outcome will be. They're not buying it for what happens in the next two or three years. … 'You just never know how quickly it can play out. It could be very quick or it could take two or three months. It just depends on when someone gets through the right place and the right deal.' — The Athletic's Brittany Ghiroli contributed to this report.
Forbes
26-03-2025
- Business
- Forbes
Ownership Questions Hang Over White Sox After 121-Loss Season
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) With his 90th birthday looming just over the horizon, Jerry Reinsdorf has almost completely lost the confidence of Chicago White Sox fans. Experience should be a major asset, as only the Steinbrenner family has controlled its franchise longer, but Reinsdorf's leadership has left his team in dire straits for both the short and long terms. A savior has appeared in the narrative, with private equity billionaire Justin Ishbia pulling out of a pursuit to buy the Minnesota Twins to increase his minority share in the White Sox. But one plus one doesn't necessarily equal two with Reinsdorf, who famously signed Albert Belle to a then-record contract shortly after joining Bud Selig in the labor war that left baseball without a World Series in 1994. Punxsutawney Phil likely has a better record with his forecasts than those who try to anticipate Reinsdorf's next moves. That said, the White Sox have never entered a season with such low expectations as they do 2025. Not only did they lose an MLB-record 121 games last season but Reinsdorf himself has questioned if they can ever sustain a competitive team based at Rate Field, their home on the South Side since 1991. His focus remains largely on searching for public funding to build a new stadium on a site in the South Loop, along the Chicago River. As far as the roster itself, Reinsdorf and a front office overhauled by second-year general manager Chris Getz seem to have the Sox built for a sale in the near future. They have cut the Opening Day payroll from $123.1 million to $74.1 million, which ranks ahead of only the Miami Marlins among MLB's 30 franchises. Reinsdorf and his partners invested $181.2 million in payroll only two seasons ago, which ranked 13th, and have been in the top 10 six times in the last two decade. But, the Belle signing aside, Reinsdorf has rarely bought into the value of major free agents. His two most costly commitments have been for middle-rung outfielders Andrew Benintendi (five years, $75 million) and Alex Rios (claimed on waivers from Toronto while owed about $60 million), and at some point you get what you pay for. When the White Sox host the Los Angeles Angels in Thursday's season opener, they'll have a new manager — Will Venable replaces interim manager Grady Sizemore, who took over for Pedro Grifol last August — and a new goal: avoid a third consecutive 100-loss season. They had lost 100 games only four times in 118 seasons before going 61-101 in 2023 and 41-121 last season. That's a whole new level of losing. The White Sox finished last in the American League Central by 41 games a year ago, when they had three streaks losing at least 12 consecutive games, (including an AL-record-tying 21-game losing streak from July 10 through Aug. 5. They did this even though starting pitchers Garrett Crochet, Erick Fedde and Chris Flexen pitched well, compiling a combined 10.3 WAR before they were traded. The Sox open this season minus 19 veteran players who earned a combined $83.1 million last season. That list includes low-floor, high ceiling players Yoan Moncada and Eloy Jimenez, with Luis Robert Jr., the team's most explosive hitter, still on the roster only because his performance has slipped enough to make the remaining $17 million on his contract a concern. He has had a big spring, hitting .300 with four home runs, so maybe it won't be long until a team meets Getz's asking price for him. Getz acquired talent cautiously in the off-season, guaranteeing $5 million for lefty starter Martin Perez and $3.5 million for infielder Josh Rojas, who was non-tendered by Seattle. But the White Sox have accumulated enough young talent through the draft and trades that Baseball Prospectus' Pecota rankings project them to go 62-100 season, with Miami (60-102) and Colorado (55-107) expected to lose more games. The White Sox are starting 25-year-old Sean Burke, a third-round pick in the 2021 draft from the University of Maryland, in Thursday's opener. Their rotation will include homegrown starters Jonathan Cannon and Davis Martin along with Shane Smith, a 25-year-old selected from Milwaukee in the Rule 5 draft. There are no new, flashy names in the lineup — although it's interesting that career .175 hitter Miguel Vargas, acquired from the Dodgers last season, is the likely leadoff hitter after hitting .341 in spring training — with the most intriguing players likely to arrive later in the season. Shortstop Colson Montgomery and catchers Kyle Teel and Edgar Quero are the most potentially impactful position players in the wings. The pitching staff could get a jolt from lefties Noah Schultz and Hagen Smith but Getz plans to be patient with their development. At least Reinsdorf's marketing staff knows these are different days. The team is offering a $125 pass for all 27 home games through May, including Opening Day. It's the ownership picture itself that is the most interesting. Will Reinsdorf sell his controlling interest in a franchise that Forbes valued at $2.05 billion last March? And if he does, will Ishbia, a part-owner in the NBA's Phoenix Suns and WNBA's Mercury, head the group of buyers? Reinsdorf was confirmed to be in discussions to sell the team to a partnership headed by former Oakland A's pitcher Dave Stewart early in 2024 but those talks did not gain much public traction, perhaps because of Stewart's interest in bringing a team to Nashville. Ishbia, who is a founding member in the Chicago-based private equity firm Shore Capital Partners, presents no obvious complications. Forbes listed Ishbia's net worth at $5.4 billion last June. He's been reported to be building a family compound worth $80 million in Winnetka, along Lake Michigan, and offers the type of Chicago roots that comfort White Sox fans. But Reinsdorf has tried to cool enthusiasm for Ishbia. He downplayed the increased investment that was reported in February. White Sox vice president of communications Scott Reifert said it only provided 'liquidity for the limited partners on their long-term investment in the club.' Reifert said Ishbia's increased level of ownership 'has no impact on the leadership or operations of the Chicago White Sox and does not provide a path to control.' But the Athletic reported that Reinsdorf's representatives approached Ishbia about increasing his share of the White Sox while he was a frontrunner to purchase the Twins. Sportico first reported that Ishbia and his brother Mat had bought into the Sox limited partnership four years. Ishbia isn't talking but fans are certainly talking about him. This season could be a tipping point, on and off the field.
Reuters
25-03-2025
- Business
- Reuters
Twins believed to be seeking $1.7B in sale of team
March 25 - Current owners of the Minnesota Twins, the Pohlad Family, are seeking at least $1.7 billion in a potential sale of the team, according to The Athletic. The Twins are renewing the sale process a month after billionaire Justin Ishbia spurned the Twins to increase his minority stake in the Chicago White Sox. The team's current debt complicates any possible deal. The Twins have more than $425 million in debt, according to The Athletic. Because of that debt, the Pohlads are motivated to ask for a higher sale price, which could limit the number of interested parties. Much of the team's debt was racked up since the start of the 2020 season, which coincided with the COVID-19 pandemic and the murder of George Floyd in Minneapolis. Also complicating matters is the limited number of potential investors with links to Minnesota. Additionally, it is believed that current executive chair Joe Pohlad would prefer to stay in control of the team, multiple sources told The Athletic. A sale of the team once seemed possible as soon as Opening Day, but now it likely won't happen any time in the immediate future. "The Pohlads are not under pressure to sell," a source told The Athletic. "They are going to be deliberate about it. They really value the process and they want the process to play out in the fullest." New York-based Allen & Company is handling the sale of the Twins. -Field Level Media
New York Times
22-02-2025
- Business
- New York Times
Twins regroup after Justin Ishbia drops bid for White Sox deal: ‘Everything's on the table'
FORT MYERS, Fla. — The Minnesota Twins are hustling to regroup after learning late this week that a leading contender in their search for a new owner, the billionaire Justin Ishbia, has abandoned his bid for the team to instead acquire the Chicago White Sox. Several team officials in spring training camp were caught off guard Friday when Ishbia's plans came to light. The Twins' process continues to move forward, according to a person with knowledge of the sale details, who said a number of 'interested parties' remain engaged. Some of them have already been vetted. Advertisement However, the team's current ownership group, the Pohlad family, could also pull the team off the market if their price isn't met. Said the source: 'Everything's on the table.' People with knowledge of the situation believe Ishbia's deal with the White Sox comes with an eventual path to take a controlling interest from longtime owner Jerry Reinsdorf. Such a stipulation would be in line with another consequence of Ishbia's decision: stepping away from a sale process with the Twins that could have put him in position to own the team by Opening Day. However, the White Sox issued a statement denying that the deal comes with provisions for Ishbia to take control. As recently as six weeks ago, it was thought that the Twins' ownership situation could be resolved by the start of the season. But in the aftermath of Ishbia's decision to abandon the Twins for the White Sox, the source said the Twins would have more clarity on the sale process within the next 30 to 60 days. New York City-based capital market company Allen & Company was hired to facilitate the sale of the Twins, which was announced on Oct. 10. Last March, the Twins were estimated to be worth between $1.46 billion and $1.7 billion by Forbes and Sportico, respectively. In early January, a person briefed on the sale process described interest in the Twins as 'robust' and noted the goal was to identify the winning party by Opening Day, which is now 33 days away. Until he opted to increase his minority stake in the White Sox this week, Ishbia was considered by multiple sources with detailed knowledge of the sale process to be the leading contender to purchase the Twins. In recent months, Ishbia met with community leaders and potential minority investors in Minnesota and had been vetted on behalf of Major League Baseball and the Twins, according to multiple sources briefed on the club's sale process. Advertisement Ishbia, who has an estimated worth of $5.4 billion according to Forbes, emerged as a potential buyer of the Twins during baseball's Winter Meetings in mid-December. The 47-year-old is the founder and managing partner of Shore Capital Partners, a Chicago-based private equity firm. Ishbia is also a minority owner of the NBA's Phoenix Suns, the WNBA's Phoenix Mercury and MLS' Nashville SC. He and his younger brother Mat, the Suns' controlling partner, purchased a small stake in the White Sox in 2021, Sportico reported in January, citing multiple people familiar with the details. Justin Ishbia was aggressive in his pursuit of the club, according to multiple sources briefed on the sale process. The Twins believed Ishbia was sincere in his attempt to buy the club, given the time and effort he put into forging relationships locally. But one team official wondered if Ishbia always preferred Chicago because of his existing stake in the South Side-based club. He lives in nearby Winnetka, Ill. Though word of Ishbia's pivot to the White Sox stunned some in Twins camp, a source briefed on the Twins' sale process said they first heard of his plan in late January. News of Ishbia's deal with the White Sox could encourage other parties in an 'adequate' group of potential buyers to up their efforts to purchase the Twins, according to the source, adding that among some bidders there had been a sense that Ishbia was 'preordained.' If the Pohlad family were unable to fetch their desired asking price for the Twins, the team's owners could simply end their exploration of a sale, the person said. Previously, the Los Angeles Angels and Washington Nationals were taken off the market when prospective buyers weren't willing to meet the price tags of those teams' respective owners. The family has owned the organization since Carl Pohland bought it for $44 million in 1984, and it's currently operated by a third generation family member, grandson, Joe Pohlad. That 41-year tenure will continue, for now. GO DEEPER Billionaire Justin Ishbia abandons bid for Twins to boost his stake in White Sox: Sources (Photo of Justin Ishbia: Mark J. Rebilas / Imagn Images)
New York Times
22-02-2025
- Business
- New York Times
Billionaire Justin Ishbia abandons bid for Twins to boost his stake in White Sox: Sources
CHICAGO — Chicago-area billionaire Justin Ishbia has dropped his pursuit of the Minnesota Twins, The Athletic has learned, and will instead buy more shares from other limited partners to increase his existing minority stake in the Chicago White Sox. People with knowledge of the discussions believe that the deal will allow Ishbia to take control of the team at some point by buying the shares of longtime owner Jerry Reinsdorf and other partners. But a White Sox official on Friday night disputed that notion, even though it would be unusual for prospective owners to make significant investments for minority shares without the promise of their stakes growing larger. Advertisement 'Similar to an opportunity in 2021, White Sox limited partners have received an offer from a third party to purchase their shares in the team, providing liquidity for the limited partners on their long-term investment in the club,' White Sox vice-president of communications Scott Reifert said. 'This offer to limited partners has no impact on the leadership or operations of the Chicago White Sox and does not provide a path to control.' A representative for Ishbia declined to comment. The development shocked the Twins, with some officials believing that their ownership situation might be resolved by Opening Day. Now, they've been left to scramble in the search for a new owner. The news couldn't be worse for Twins fans, who dreamed Ishbia would bring a deep wallet and competitive fire to an organization in need, only to see him stay with a division rival. It was during Ishbia's pursuit of the Twins that the Reinsdorfs came to him and discussed increasing his share of the White Sox, according to a person briefed on the discussions who was not authorized to speak publicly. The deal, which is being brokered by Chicago-area investment advisors BDT & MSD Partners, still needs league approval, according to a source briefed on discussions. But another source said that if Justin Ishbia takes control of the White Sox, he would be the lead and his brother Mat would be an investor, the reverse of the arrangement they have in Phoenix, where they own the NBA's Suns and the WNBA's Mercury. White Sox limited partners were recently informed that an investor wanted to buy their shares at a franchise valuation around $1.8 billion, according to people briefed on the discussions who were not authorized to speak publicly. While they aren't required to sell, their stakes would be diluted by this new investor. The deadline for their decision is next Friday. Advertisement The Athletic has confirmed the buyer is Ishbia, who had been a limited partner of the team for years. Sportico reported in January that Ishbia and his brother had bought into the Sox limited partnership group four years ago. At the time, as the White Sox were ascendent on the field, Reinsdorf's two sons, Michael, the president/CEO of the Chicago Bulls, and Jonathan, led a push to buy out the team's limited partners, albeit at a valuation believed to be about half of what it is now. Some of the partners sold, but many stuck around for a potential bigger payday. These limited partners can now sell their shares to Ishbia. Per team policy, the White Sox don't reveal the names of their limited partners. Ishbia, 47, has an estimated worth of more than $5 billion according to Forbes. Mat Ishbia led their $4 billion purchase of the Suns and Mercury, which was finalized in 2023. Though the brothers grew up in suburban Detroit, Justin Ishbia is currently building a massive estate in the North Shore suburb Winnetka on the shores of Lake Michigan. He is a founding partner of private equity firm Shore Capital Partners but most of the family's immense wealth comes from United Wholesale Mortgage, which was founded by Ishbia's father Jeff and is run by his younger brother Mat, the CEO. Ishbia's love of baseball is no secret. 'The beauty of baseball is that it's not about a star or two,' he told The Athletic last fall when he made a $10 million donation to his alma mater Michigan State. 'It's truly a team sport, and it's a team sport over a long period of time. It's a grind and it's a discipline. It's life. Life is the discipline of doing the same thing over and over again consistently. And that's what the long summer of baseball is all about.' Reinsdorf, who also led a group to buy a majority stake in the Bulls in 1985, has long said he would advise his family to sell the White Sox after he dies. He's also made it known he's trying to set up the franchise for the future. Before the White Sox had a press conference to announce Chris Getz as the new general manager on Aug. 31, 2023, Reinsdorf talked to a small group of reporters and explained why he wanted to keep working late into his ninth decade. Advertisement 'Friends of mine have said, 'Why don't you sell, why don't you get out?'' he told reporters. 'And my answer always has been, 'I like what I'm doing, as bad as it is, and what else would I do?' I'm a boring guy. I don't play golf. I don't play bridge. What else would I do? And I want to make it better, I want to make it better before I go.' In October, The Athletic reported that Reinsdorf, who turns 89 next week, was exploring a possible sale of the White Sox to a group led by Dave Stewart. Reinsdorf, who has been angling for a new stadium in Chicago, had also met with the mayor of Nashville, sparking concern he could move the team if he didn't get what he wanted in public funding for a new ballpark. The team never publicly commented on the story and Stewart recently returned to the Athletics organization as a special assistant to player development. While Reinsdorf has always been the controlling partner of the team — his group purchased the club for $19 million in 1981 —he's reportedly never been the majority shareholder. He recently told Crain's Chicago Business he owns more than 19 percent of the team, but he's kept his true stake a mystery for decades. 'No partner knows what I own,' Reinsdorf told the Chicago Tribune in 2013. A number of these limited partners have been with Reinsdorf since the very beginning, back when he and his partner, the late Eddie Einhorn, were wide-eyed newcomers to the game. If the deal goes through and Ishbia eventually takes control, this would give the White Sox future local ownership amid uncertainty with their stadium situation. It would also be a boost for a beleaguered fan base that had tired of Reinsdorf's subpar record while owning the team for parts of five decades. Reinsdorf spent much of the past year working on getting public funding for a new stadium to replace Rate Field, which opened in 1991 across the street from where old Comiskey Park once stood. He looked to a new development in the South Loop called 'The 78' to build a new stadium through a public-private partnership, even having the team's groundskeeper Roger Bossard set up a field there while bringing in possible investors on a boat cruise with retired White Sox players. Advertisement At one point, he was working with the Chicago Bears on a two-pronged approach to getting public funding for two new stadiums, but that fizzled out. The state hasn't been too receptive to the idea of funding another stadium for Reinsdorf as the publicly funded Rate Field still hasn't been paid off yet. Meanwhile, as the franchise celebrates the 20th anniversary of the 2005 World Series champion team, the Sox's fortunes on the field have never been worse. They set a new modern-day mark for baseball futility with a 41-121 record last year. The team's new RSN isn't available yet on Chicago's largest cable provider, Comcast, and attendance has declined precipitously over the past two seasons. And in 2023 and 2024, the fans who did show up to games took to chanting 'Sell the team!' Similar to South Siders, Minnesotans often began 'Sell the team!' chants during a late-season collapse in which the Twins missed the playoffs, including one sly patron who snuck in a 'Defund The Pohlads' sign that was viewed on the stadium's jumbotron. The family has owned the organization since Carl Pohlad bought it for $44 million in 1984, and it's currently operated by a third generation family member, grandson, Joe Pohlad. The Pohlad family was widely criticized last season for a $30 million payroll reduction made after the team experienced its first playoff success in 21 years. They announced in October that they would begin exploring a sale of the organization. Two months later, Ishbia emerged as a suitor. Ishbia was aggressive in his pursuit of the Twins, according to multiple sources briefed on the club's sale. One described Ishbia as 'very, very serious' and believed he had the financial wherewithal to buy the club. Noting the Twins were drawing plenty of interest — the franchise last year was estimated to be worth between $1.46 billion and $1.7 billion by Forbes and Sportico, respectively — another person with knowledge of the sale process said last month the goal was to pick a winning bidder by Opening Day. The Twins believed Ishbia was sincere in his pursuit because Reinsdorf wasn't planning to sell the White Sox, according to a person with knowledge of the sale process. A person briefed on the situation told The Athletic that Ishbia held meetings in December with officials, community leaders and potential minority owners in Minnesota to express his interest in purchasing the team. Advertisement The Twins believed it was a serious attempt. Though one person briefed on the Twins' sale process first heard of the plan in January, club officials expressed surprise on Thursday to learn of Ishbia's agreement with Reinsdorf. Now, after seeing a billionaire bidder spurn them and instead decide to invest in an AL Central rival, the Twins must regroup. — The Athletic's Dan Hayes contributed to this report. (Top photo of Justin Ishbia: Mark J. Rebilas / Imagn Images)
