Understanding Jerry

[reiks12]

I don't know anything about the finances of a company, but can anyone explain how his "be in second place" mentality is the best way to make money? I am comparing revenues by teams from 2002-2022 and the White Sox 'carrot on the stick' approach seems to fall behind the growth of other teams around our valuation (looked at Phillies, Padres, and Blue Jays).

In my opinion, if Jerry just hired the right people to help run his franchise, put out a good product year in and year out, and didn't blame the fans for all of their shortcomings, then they would probably be bringing in much higher numbers. Maybe I am missing something. He still x100 his investment from when he bought the franchise so what do i know. 

For those interested, I was going over the Forbes valuations list. 

 

 

[Chick Mercedes]

Second place eh. Must be nice. I don’t know. One cannot explain Jerry unless you’re taking into account that Jerry probably appreciates safe steady money instead of chasing a more uncertain, increased overhead approach.  We’re not going to be signing Ohtani type pkayers anytime soon. HAHAHA Ha Ha. Ha. Ah. a

[T R U]

I don't get it. If you don't want to pay the price to sign these high dollar fee agents then invest your money into scouting and development. At least that way you can hopefully produce your own star players and just keep that cycle going.

We seemingly like to live in the middle ground of behind the times in scouting/development and only shelling out money for mid tier free agents who wont move the needle. Also, continually hiring unqualified alumni to lead your team/organization.

[Lip Man 1]

As Jerry himself has said he makes enough from his negotiated domestic and international deals to cover his payroll before a single ticket is sold, a single car is parked and a single beer is sold.

To understand Jerry it comes down to basically this, he wants to win but he wants to win HIS WAY.

That is keeping salaries low since he still feels players make to much money, not hiring top of the line managers and coaches because, as he has said, that don't impact the game that much, not investing that much in the farm system/player development because as he has said he doesn't believe in paying for "potential", he also doesn't want to take the time and effort at his age to really deal with massive change. He has a large ego and that ego won't admit his way simply doesn't work.

When I put out my story on the State of the Sox in November 2022, I specifically asked about JR and these were some of the replies:

“JR is 86 and he’s in great shape, he looks good, still drives himself around but I just think at this point he simply doesn’t want to be bothered with having to bring in a new front office, maybe he thinks in a few years it won’t matter anyway.”

“People, his friends… have tried to tell him what has been going on, “Hawk” Harrelson, the late Ed Farmer… God rest his soul, Darrin Jackson, Scott Reifert (Author’s Note: Scott is the Senior Vice-President for Communications) , Bob Grim and others but it’s just not registering for some reason.”

“I wonder what impact his wife passing away earlier this year has had on him.”

“JR has told his family he does not want any of his sons owning the team when he is gone. The Bulls are fine he said because they make Michael (Reinsdorf) money but baseball just doesn’t allow you to do that. (no salary cap)” (Author’s Note: Was told by an individual who knew some of the minority owners that “The Sox haven’t lost money in a long time.” A second source agreed with that statement. Seems to be a conflict doesn’t it? Maybe JR isn’t making enough money to suit him vis a vis the Sox?)

“With :30 seconds left in their selection time on draft day JR would say things like “You know this college right-handed pitcher has the lowest injury risk.”

“In October 2005 some investors asked JR to sell and get out while the going was good, but he wouldn’t.”

“Andrew Berlin, twice tried to buy the Sox around 2008 but wasn’t successful.” (Author’s Note: Berlin, grew up a Sox fan and is now the owner of the Cubs farm team in South Bend, Indiana.)

“I heard that JR owns 12% of the team but with some of the original investors passing away that has probably gone up to 18%” (Author’s Note: Even though he only owns a small percentage of the franchise Jerry Reinsdorf has absolute authority to run the team as he sees fit. It is written into his contract. That includes selling or not selling the club despite what the other investors wish. The only way he can be removed from his position is if he has done something illegal, appears to be losing his mental faculties or is being financially irresponsible.)

“I was talking with an agent and they said the next owner of the Sox can’t be a group of investors, it has to be a big company. That’s why Dennis Gilbert, who tried to buy the Dodgers won’t get the Sox, he can’t come up with enough big money investors”

“JR has become oblivious to things and what he’s allowed to happen is sad. He’s probably the most successful owner in Chicago sports history given the Bulls titles and the White Sox one which is dear to his heart, but what has happened the last two years is just sad. He is out-of-touch. And even worse he’s inaccessible. He’s either afraid of having to answer questions or he’s incapable of doing so.”

“JR likes the structure he has because it gives him an extra layer of protection from criticism.”

 

 

[reiks12]

31 minutes ago, Lip Man 1 said:

As Jerry himself has said he makes enough from his negotiated domestic and international deals to cover his payroll before a single ticket is sold, a single car is parked and a single beer is sold.

...

Thanks for this, good insights

[JoshPR]

6 hours ago, Lip Man 1 said:

As Jerry himself has said he makes enough from his negotiated domestic and international deals to cover his payroll before a single ticket is sold, a single car is parked and a single beer is sold.

To understand Jerry it comes down to basically this, he wants to win but he wants to win HIS WAY.

That is keeping salaries low since he still feels players make to much money, not hiring top of the line managers and coaches because, as he has said, that don't impact the game that much, not investing that much in the farm system/player development because as he has said he doesn't believe in paying for "potential", he also doesn't want to take the time and effort at his age to really deal with massive change. He has a large ego and that ego won't admit his way simply doesn't work.

When I put out my story on the State of the Sox in November 2022, I specifically asked about JR and these were some of the replies:

“JR is 86 and he’s in great shape, he looks good, still drives himself around but I just think at this point he simply doesn’t want to be bothered with having to bring in a new front office, maybe he thinks in a few years it won’t matter anyway.”

“People, his friends… have tried to tell him what has been going on, “Hawk” Harrelson, the late Ed Farmer… God rest his soul, Darrin Jackson, Scott Reifert (Author’s Note: Scott is the Senior Vice-President for Communications) , Bob Grim and others but it’s just not registering for some reason.”

“I wonder what impact his wife passing away earlier this year has had on him.”

“JR has told his family he does not want any of his sons owning the team when he is gone. The Bulls are fine he said because they make Michael (Reinsdorf) money but baseball just doesn’t allow you to do that. (no salary cap)” (Author’s Note: Was told by an individual who knew some of the minority owners that “The Sox haven’t lost money in a long time.” A second source agreed with that statement. Seems to be a conflict doesn’t it? Maybe JR isn’t making enough money to suit him vis a vis the Sox?)

“With :30 seconds left in their selection time on draft day JR would say things like “You know this college right-handed pitcher has the lowest injury risk.”

“In October 2005 some investors asked JR to sell and get out while the going was good, but he wouldn’t.”

“Andrew Berlin, twice tried to buy the Sox around 2008 but wasn’t successful.” (Author’s Note: Berlin, grew up a Sox fan and is now the owner of the Cubs farm team in South Bend, Indiana.)

“I heard that JR owns 12% of the team but with some of the original investors passing away that has probably gone up to 18%” (Author’s Note: Even though he only owns a small percentage of the franchise Jerry Reinsdorf has absolute authority to run the team as he sees fit. It is written into his contract. That includes selling or not selling the club despite what the other investors wish. The only way he can be removed from his position is if he has done something illegal, appears to be losing his mental faculties or is being financially irresponsible.)

“I was talking with an agent and they said the next owner of the Sox can’t be a group of investors, it has to be a big company. That’s why Dennis Gilbert, who tried to buy the Dodgers won’t get the Sox, he can’t come up with enough big money investors”

“JR has become oblivious to things and what he’s allowed to happen is sad. He’s probably the most successful owner in Chicago sports history given the Bulls titles and the White Sox one which is dear to his heart, but what has happened the last two years is just sad. He is out-of-touch. And even worse he’s inaccessible. He’s either afraid of having to answer questions or he’s incapable of doing so.”

“JR likes the structure he has because it gives him an extra layer of protection from criticism.”

 

 

This is very good lip. This dude has been sucking off Chicago for 43 years...

[Milkman delivers]

28 minutes ago, JoshPR said:

This is very good lip. This dude has been sucking off Chicago for 43 years...

🤔

Don’t…say…it…

[Rusty]

Jerry is a business person not a fan.  He knows that attempting to outspend other teams in an uncapped league is a dangerous proposition, especially as contracts have exploded.  He’s a real estate guy so he’s willing to take some short term losses in favor of long returns. He bought the team for $19m in 1981, basically has a free stadium that he keeps all revenue from, hasn’t been bit by huge contracts, and is now valued at approximately $2.1bn.  Small year over year losses really don’t matter at this point and are likely due to fuzzy accounting.  To Jerry and the investors….theyve got a great ROI.  That’s why it’ll never change until he dies and the team is sold.  Even when he owns less than 20% the terms of his ownership agreement mean no serious buyer/investor will replace the current groups with a stake because they know they are at his mercy and…he is in pretty good shape for a dude approaching 90 years old.  

[The Grinder]

I feel bad saying this but Jerry needs to get horizontal.  Soon. Sorry 

[Milkman delivers]

30 minutes ago, The Grinder said:

I feel bad saying this but Jerry needs to get horizontal.  Soon. Sorry 

He’s pushing 90 and it’s 9:30. I’m sure he’s been sleeping for at least 2 hours.

[WhiteSox2023]

4 minutes ago, Milkman delivers said:

He’s pushing 90 and it’s 9:30. I’m sure he’s been sleeping for at least 2 hours.

I heard that he usually goes for a quick swim before bed to stay active.

[Paulie4Pres]

10 hours ago, Lip Man 1 said:

As Jerry himself has said he makes enough from his negotiated domestic and international deals to cover his payroll before a single ticket is sold, a single car is parked and a single beer is sold.

To understand Jerry it comes down to basically this, he wants to win but he wants to win HIS WAY.

That is keeping salaries low since he still feels players make to much money, not hiring top of the line managers and coaches because, as he has said, that don't impact the game that much, not investing that much in the farm system/player development because as he has said he doesn't believe in paying for "potential", he also doesn't want to take the time and effort at his age to really deal with massive change. He has a large ego and that ego won't admit his way simply doesn't work.

When I put out my story on the State of the Sox in November 2022, I specifically asked about JR and these were some of the replies:

“JR is 86 and he’s in great shape, he looks good, still drives himself around but I just think at this point he simply doesn’t want to be bothered with having to bring in a new front office, maybe he thinks in a few years it won’t matter anyway.”

“People, his friends… have tried to tell him what has been going on, “Hawk” Harrelson, the late Ed Farmer… God rest his soul, Darrin Jackson, Scott Reifert (Author’s Note: Scott is the Senior Vice-President for Communications) , Bob Grim and others but it’s just not registering for some reason.”

“I wonder what impact his wife passing away earlier this year has had on him.”

“JR has told his family he does not want any of his sons owning the team when he is gone. The Bulls are fine he said because they make Michael (Reinsdorf) money but baseball just doesn’t allow you to do that. (no salary cap)” (Author’s Note: Was told by an individual who knew some of the minority owners that “The Sox haven’t lost money in a long time.” A second source agreed with that statement. Seems to be a conflict doesn’t it? Maybe JR isn’t making enough money to suit him vis a vis the Sox?)

“With :30 seconds left in their selection time on draft day JR would say things like “You know this college right-handed pitcher has the lowest injury risk.”

“In October 2005 some investors asked JR to sell and get out while the going was good, but he wouldn’t.”

“Andrew Berlin, twice tried to buy the Sox around 2008 but wasn’t successful.” (Author’s Note: Berlin, grew up a Sox fan and is now the owner of the Cubs farm team in South Bend, Indiana.)

“I heard that JR owns 12% of the team but with some of the original investors passing away that has probably gone up to 18%” (Author’s Note: Even though he only owns a small percentage of the franchise Jerry Reinsdorf has absolute authority to run the team as he sees fit. It is written into his contract. That includes selling or not selling the club despite what the other investors wish. The only way he can be removed from his position is if he has done something illegal, appears to be losing his mental faculties or is being financially irresponsible.)

“I was talking with an agent and they said the next owner of the Sox can’t be a group of investors, it has to be a big company. That’s why Dennis Gilbert, who tried to buy the Dodgers won’t get the Sox, he can’t come up with enough big money investors”

“JR has become oblivious to things and what he’s allowed to happen is sad. He’s probably the most successful owner in Chicago sports history given the Bulls titles and the White Sox one which is dear to his heart, but what has happened the last two years is just sad. He is out-of-touch. And even worse he’s inaccessible. He’s either afraid of having to answer questions or he’s incapable of doing so.”

“JR likes the structure he has because it gives him an extra layer of protection from criticism.”

 

 

Just die already. That's all it comes down to. f*** this rich loser.

[Blackhawk Icerunner]

When is Reinsdorf Effigy Night? only game I'll go to this year!

 

[Harold's Leg Lift]

19 hours ago, Paulie4Pres said:

Just die already. That's all it comes down to. f*** this rich loser.

Klassy

[WhiteSox2023]

On 4/24/2024 at 10:05 AM, Chick Mercedes said:

Second place eh. Must be nice. I don’t know. One cannot explain Jerry unless you’re taking into account that Jerry probably appreciates safe steady money instead of chasing a more uncertain, increased overhead approach.  We’re not going to be signing Ohtani type pkayers anytime soon. HAHAHA Ha Ha. Ha. Ah. a

Such a great quote — emphatically stating that you won’t even be an interested party for the best baseball player in history and then laughing about it right after.  What a clown of an owner.

[77 Hitmen]

On 4/24/2024 at 11:29 AM, Lip Man 1 said:

As Jerry himself has said he makes enough from his negotiated domestic and international deals to cover his payroll before a single ticket is sold, a single car is parked and a single beer is sold.

To understand Jerry it comes down to basically this, he wants to win but he wants to win HIS WAY.

That is keeping salaries low since he still feels players make to much money, not hiring top of the line managers and coaches because, as he has said, that don't impact the game that much, not investing that much in the farm system/player development because as he has said he doesn't believe in paying for "potential", he also doesn't want to take the time and effort at his age to really deal with massive change. He has a large ego and that ego won't admit his way simply doesn't work.

When I put out my story on the State of the Sox in November 2022, I specifically asked about JR and these were some of the replies:

“JR is 86 and he’s in great shape, he looks good, still drives himself around but I just think at this point he simply doesn’t want to be bothered with having to bring in a new front office, maybe he thinks in a few years it won’t matter anyway.”

“People, his friends… have tried to tell him what has been going on, “Hawk” Harrelson, the late Ed Farmer… God rest his soul, Darrin Jackson, Scott Reifert (Author’s Note: Scott is the Senior Vice-President for Communications) , Bob Grim and others but it’s just not registering for some reason.”

“I wonder what impact his wife passing away earlier this year has had on him.”

“JR has told his family he does not want any of his sons owning the team when he is gone. The Bulls are fine he said because they make Michael (Reinsdorf) money but baseball just doesn’t allow you to do that. (no salary cap)” (Author’s Note: Was told by an individual who knew some of the minority owners that “The Sox haven’t lost money in a long time.” A second source agreed with that statement. Seems to be a conflict doesn’t it? Maybe JR isn’t making enough money to suit him vis a vis the Sox?)

“With :30 seconds left in their selection time on draft day JR would say things like “You know this college right-handed pitcher has the lowest injury risk.”

“In October 2005 some investors asked JR to sell and get out while the going was good, but he wouldn’t.”

“Andrew Berlin, twice tried to buy the Sox around 2008 but wasn’t successful.” (Author’s Note: Berlin, grew up a Sox fan and is now the owner of the Cubs farm team in South Bend, Indiana.)

“I heard that JR owns 12% of the team but with some of the original investors passing away that has probably gone up to 18%” (Author’s Note: Even though he only owns a small percentage of the franchise Jerry Reinsdorf has absolute authority to run the team as he sees fit. It is written into his contract. That includes selling or not selling the club despite what the other investors wish. The only way he can be removed from his position is if he has done something illegal, appears to be losing his mental faculties or is being financially irresponsible.)

“I was talking with an agent and they said the next owner of the Sox can’t be a group of investors, it has to be a big company. That’s why Dennis Gilbert, who tried to buy the Dodgers won’t get the Sox, he can’t come up with enough big money investors”

“JR has become oblivious to things and what he’s allowed to happen is sad. He’s probably the most successful owner in Chicago sports history given the Bulls titles and the White Sox one which is dear to his heart, but what has happened the last two years is just sad. He is out-of-touch. And even worse he’s inaccessible. He’s either afraid of having to answer questions or he’s incapable of doing so.”

“JR likes the structure he has because it gives him an extra layer of protection from criticism.”

 

Well summarized. 

One thing I don't get is why would he care if any of his offspring own the White Sox after he's gone?  I keep hearing that, but why would he care what business decisions they make after he's dead?  Surely Michael or any other Reinsdorf children are old enough and experienced enough to make their own decision on this.  Are there multiple sources and/or interviews to confirm this?  Or is this based on one comment he made one time?

Edited April 26 by 77 Hitmen

[fathom]

2 hours ago, 77 Hitmen said:

Well summarized. 

One thing I don't get is why would he care if any of his offspring own the White Sox after he's gone?  I keep hearing that, but why would he care what business decisions they make after he's dead?  Surely Michael or any other Reinsdorf children are old enough and experienced enough to make their own decision on this.  Are there multiple sources and/or interviews to confirm this?  Or is this based on one comment he made one time?

Just guessing, but because he doesn’t want someone to take over that doesn’t view baseball the same way he does.  Remember, he thinks he’s the only one who realizes how teams should be owned.

[caulfield12]

1 hour ago, fathom said:

Just guessing, but because he doesn’t want someone to take over that doesn’t view baseball the same way he does.  Remember, he thinks he’s the only one who realizes how teams should be owned.

What does he really have in common with Mellody Hobson, though?

Besides Chicago ties?

[Iwritecode]

Jerry is the definition of low risk high reward. Put as little money/effort into winning as possible and if every single little thing goes right,,. If every ball bounces exactly the right way... then you have 2005.

On the other hand, if everything goes bad you have 2024.

[Capn12]

Jerry always said 2nd was good enough....we're 2nd now, in all of MLB history!

 

[caulfield12]

43 minutes ago, Capn12 said:

Jerry always said 2nd was good enough....we're 2nd now, in all of MLB history!

 

Those Orioles

3-24

4-25

5-29

6-31

7-34

8-34

9-34

10-38

 

Edited April 26 by caulfield12

[Harold's Leg Lift]

8 hours ago, 77 Hitmen said:

Well summarized. 

One thing I don't get is why would he care if any of his offspring own the White Sox after he's gone?  I keep hearing that, but why would he care what business decisions they make after he's dead?  Surely Michael or any other Reinsdorf children are old enough and experienced enough to make their own decision on this.  Are there multiple sources and/or interviews to confirm this?  Or is this based on one comment he made one time?

He owns two franchises and he has two sons.  He leaves one to Michael and one to John.  I don't think that part is very difficult to understand.  Now there is another part to this that is more complicated and I'm not going to get into that right now but the way things stand today I think John being the primary owner of the White Sox is the most likely scenario. 

[Lip Man 1]

11 hours ago, 77 Hitmen said:

Well summarized. 

One thing I don't get is why would he care if any of his offspring own the White Sox after he's gone?  I keep hearing that, but why would he care what business decisions they make after he's dead?  Surely Michael or any other Reinsdorf children are old enough and experienced enough to make their own decision on this.  Are there multiple sources and/or interviews to confirm this?  Or is this based on one comment he made one time?

He has actually said this a few times, but he hasn't spoken much about it publicly over the decades. I've posted the comments from others both inside and outside the organization who have told me the same thing regarding the future.

I think just a few years ago one of the mainstream newspapers had a story or two on the future of the Sox where there were comments as well along these lines but I honestly don't remember a lot of specifics from the story.

And frankly given the state of the Bulls under Michael running things, the very LAST thing any Sox fan should want is another Reinsdorf running the franchise for another 40+ years.

Edited April 26 by Lip Man 1

[77 Hitmen]

22 minutes ago, Lip Man 1 said:

He has actually said this a few times, but he hasn't spoken much about it publicly over the decades. I've posted the comments from others both inside and outside the organization who have told me the same thing regarding the future.

I think just a few years ago one of the mainstream newspapers had a story or two on the future of the Sox where there were comments as well along these lines but I honestly don't remember a lot of specifics from the story.

And frankly given the state of the Bulls under Michael running things, the very LAST thing any Sox fan should want is another Reinsdorf running the franchise for another 40+ years.

Oh absolutely.  I'm not advocating for a continuation of a Reinsdorf ownership of the Sox in any way.  I was just wondering about his motivation for saying such a thing and, given his reluctance to talk to the press, how often he's actually expressed this desire.

[Lip Man 1]

51 minutes ago, 77 Hitmen said:

Oh absolutely.  I'm not advocating for a continuation of a Reinsdorf ownership of the Sox in any way.  I was just wondering about his motivation for saying such a thing and, given his reluctance to talk to the press, how often he's actually expressed this desire.

I know of two "official" instances where he has publicly commented on succession. The others come from what my sources have told me over the years and for the State of the Sox story I did in November 2022. The other was that newspaper story but I can't remember the details, it was just published a few years ago, don't even remember if it was the Sun-Times or the Tribune.

I think the "motivation" is basic as I was told.  He feels the White Sox don't make money and the Bulls do because the NBA has a salary cap. I have no idea if that's true or not, I've only been told by individuals who know members of the board that the Sox haven't lost money in a long time. As I wrote maybe JR feels the Sox don't make enough money to suit his expectations.

No way to know for sure since they won't open their books to an independent economist to evaluate.