Ownership breakdown: ishbias 35%, Reinsdorfs 50%

[fathom]

38 minutes ago, ChiSoxFanMike said:

Considering Jerry is damn near 90, I think trying to project timelines for this whole process is pretty silly.

He had a tweet saying that health didn’t play a factor in his 5 year prediction 

[ChiSoxFanMike]

13 minutes ago, fathom said:

He had a tweet saying that health didn’t play a factor in his 5 year prediction 

Health plays a factor in everything when you are almost 90. One illness and someone could head downhill.

[fathom]

13 minutes ago, ChiSoxFanMike said:

Health plays a factor in everything when you are almost 90. One illness and someone could head downhill.

My interpretation was that even if JR fell ill today, it would still be years before a change in ownership.

[ChiSoxFanMike]

1 hour ago, fathom said:

My interpretation was that even if JR fell ill today, it would still be years before a change in ownership.

So if he dies next year for example, then what? Wouldn’t the Ishbia’s have control in that case?

[caulfield12]

37 minutes ago, ChiSoxFanMike said:

So if he dies next year for example, then what? Wouldn’t the Ishbia’s have control in that case?

No...the control shares would still be with the sons, theoretically.

They would have to negotiate a settlement with the Ishbias, unless it's already laid out in the success plan...likely (a large part of) the reason for them to move on from the Twins to the White Sox.

[caulfield12]

46 minutes ago, ChiSoxFanMike said:

So if he dies next year for example, then what? Wouldn’t the Ishbia’s have control in that case?

Nobody except the Ishbia's and Reinsdorf's know for sure....there has to be a signed confidentiality agreement that was drafted in the last couple of months.

Before their share purchase, it would have been pretty obvious for the "control shares" in the team to be passed on to his son/s.

 

“Nothing has changed,” Holmes said. “This is how it’s going to be. Jerry is not out here trying to get rid of the White Sox. He still would like to be in charge of the White Sox, and he’s going to be in charge of the White Sox.”

Edited Tuesday at 05:25 AM by caulfield12

[tray]

There are statutes in the Federal Code that pertain to ownership stakes, constructive ownership of a family member's stock etc. There are also stautes and rules pertaining to the rights of minority shareholders including the right to examine the books of the corporation. Ishbias could have purchased Reinsforf stake outright and he has plenty of money to do that. Instead Ishbia is going down one of the typical roads that private equity investment investors often head. Some of those strategies include, for example,  destabilizing the corporations financial status, even intentionally. For example, increasing debt dramatically and letting the whole house of cards fold in order to pick up the pieces later while giving the shaft to banks. There are several other strategies that  Private Equity Investors can employ, but I am going to leave it to anyone interested in exploring that to do their own research.

My own view is that Ishbia is a corporate raider that is guided by one primary financial interest - his own. Can he be stopped? I don't know, but I hope so.

Edited Tuesday at 06:09 AM by tray

[caulfield12]

44 minutes ago, tray said:

There are statutes in the Federal Code that pertain to ownership stakes, constructive ownership of a family member's stock etc. There are also stautes and rules pertaining to the rights of minority shareholders including the right to examine the books of the corporation. Ishbias could have purchased Reinsforf stake outright and he has plenty of money to do that. Instead Ishbia is going down one of the typical roads that private equity investment investors often head. Some of those strategies include, for example,  destabilizing the corporations financial status, even intentionally. For example, increasing debt dramatically and letting the whole house of cards fold in order to pick up the pieces later while giving the shaft to banks. There are several other strategies that  Private Equity Investors can employ, but I am going to leave it to anyone interested in exploring that to do their own research.

My own view is that Ishbia is a corporate raider that is guided by one primary financial interest - his own. Can he be stopped? I don't know, but I hope so.

For example, increasing debt dramatically and letting the whole house of cards fold in order to pick up the pieces later while giving the shaft to banks. There are several other strategies that  Private Equity Investors can employ, but I am going to leave it to anyone interested in exploring that to do their own research.

My own view is that Ishbia is a corporate raider that is guided by one primary financial interest - his own. Can he be stopped? I don't know, but I hope so.

 

 

This sounds like exactly like the plot of Wall Street with Gordon Gekko/Michael Douglas against Martin and Charlie Sheen (Bud Fox)...

How would the Ishbias be allowed to take on or issue Sox "debt" per se?   They don't have the ability to offer FA contracts, for example.  It's also not clear exactly how or why any banks would be shafted if this was self-financed...as Ishbia sitting on $5+ billion in net worth certainly doesn't require a bank loan like let's say a typical Trump Corp. family real estate deal, or an injection of investment capital from let's say, Saudi Arabia, lol.

The only way they could POSSIBLY incur debt would be to take the responsibility for private funding on the new stadium....but that would revolve around a "cash call" for all investors to contribute XXX amount of money per share, where 85% of that money would have to becoming from either the Reinsdorfs or Ishbias.

In theory, the other 8 minority shareholders still holding out could be "forced" to sell their shares if they didn't want to "lose money" through their contributions to the new stadium...but it seems like the Reinsdorf's (sons) have been more successful at picking off existing minority shareholders than the Ishbias (outside corporate raiders in this analogy, lol).

Ofc, why would JR INVITE Justin Ishbia to abandon his Twins' courtship if they were looking at the Ishbia shares as somehow "hostile" (as in takeover or leveraged buyout) to the JR or Michael Reinsdorf shares (50% of the team, roughly)...???

In that case, it would seem the obvious play would simply be to buy the Twins at $1.6 billion from the Pohlad Family...but this is not what actually transpired in real life.

Edited Tuesday at 06:45 AM by caulfield12

[hogan873]

The Ishbias would not have abandoned their pursuit of the Twins and invested more in the Sox if there wasn't a plan.  I think we can all agree nothing is imminent, but articles like this (and others) are written without knowing what is going on, and there's probably some White Sox "leaked" information that isn't 100% truthful.  As someone else pointed out earlier, this team under competent ownership could make a lot of money.  It's probably going to be a while, but I see this as a positive development.

[wegner]

11 hours ago, Quin said:

Cause the White Sox with a capable owner would print money.

Good....I miss Comiskey Cash.

[southsider2k5]

10 hours ago, fathom said:

My interpretation was that even if JR fell ill today, it would still be years before a change in ownership.

Which would be stupid, because they then get taxed twice.  Once on the inheritance and then again on the sale adjusted price.

[southsider2k5]

9 hours ago, ChiSoxFanMike said:

So if he dies next year for example, then what? Wouldn’t the Ishbia’s have control in that case?

All deals like this have a survivability clause for this reason.

[southsider2k5]

7 hours ago, tray said:

There are statutes in the Federal Code that pertain to ownership stakes, constructive ownership of a family member's stock etc. There are also stautes and rules pertaining to the rights of minority shareholders including the right to examine the books of the corporation. Ishbias could have purchased Reinsforf stake outright and he has plenty of money to do that. Instead Ishbia is going down one of the typical roads that private equity investment investors often head. Some of those strategies include, for example,  destabilizing the corporations financial status, even intentionally. For example, increasing debt dramatically and letting the whole house of cards fold in order to pick up the pieces later while giving the shaft to banks. There are several other strategies that  Private Equity Investors can employ, but I am going to leave it to anyone interested in exploring that to do their own research.

My own view is that Ishbia is a corporate raider that is guided by one primary financial interest - his own. Can he be stopped? I don't know, but I hope so.

Right, because this franchise is so stable right now with Jerry having the worst product in the history of MLB on the field, plus no TV or stadium deal off of it along with the lowest attendance in over 35 years. 

Jerry has destroyed this franchise all by himself. 

[Dick Allen]

What people need to understand is Ishbia could own 99% of the team and JR 1%, JR still has control until he wants to give it up, and apparently he thinks he's the one who can fix all that he has screwed up. Just give up control. Your shares will go up in value instantly.

[Quin]

19 minutes ago, southsider2k5 said:

Right, because this franchise is so stable right now with Jerry having the worst product in the history of MLB on the field, plus no TV or stadium deal off of it along with the lowest attendance in over 35 years. 

Jerry has destroyed this franchise all by himself. 

Owning the Bulls and White Sox brands should be easy mode for a sports owner. They're legitimate fashion.

It's AMAZING that Reinsdorf can't capitalize.

[southsider2k5]

14 minutes ago, Dick Allen said:

What people need to understand is Ishbia could own 99% of the team and JR 1%, JR still has control until he wants to give it up, and apparently he thinks he's the one who can fix all that he has screwed up. Just give up control. Your shares will go up in value instantly.

Right.  There is an existing agreement which probably exists in perpetuity, even when those shares are transferred or sold.

[Ducksnort]

41 minutes ago, Dick Allen said:

What people need to understand is Ishbia could own 99% of the team and JR 1%, JR still has control until he wants to give it up, and apparently he thinks he's the one who can fix all that he has screwed up. Just give up control. Your shares will go up in value instantly.

Pride is an incredibly difficult thing to let go of.

[steveno89]

9 hours ago, caulfield12 said:

No...the control shares would still be with the sons, theoretically.

They would have to negotiate a settlement with the Ishbias, unless it's already laid out in the success plan...likely (a large part of) the reason for them to move on from the Twins to the White Sox.

Saw a recent report that the Ishbia's may have had issue with the Twins valuation and that could have been a contributing factor of changing plans 

[Ducksnort]

14 hours ago, caulfield12 said:

At this point, you're almost stuck rooting for more national embarrassment or the Office of the Commissioner to step in.

Running the 29th highest payroll in baseball out of Chicago?

If/when Robert Perez Benintendi are dealt...they will fall below the Marlins for lowest payroll in the sport.

That's just crazy.

 

Waiting for the stadium issue to come to a head is going to take forever...and there's just no way the Ishbias would want to be locked into that stadium for another 15-20 years.

They're getting close to Anaheim and KC now having the oldest facilities outside of Fenway and Wrigley.

It doesn't matter if they are 29th or 5th. They were top 10 just, what was it, last year, the year before? They were complete doodoo. It doesn't matter how much is spent if it isn't spent the right way. Spending is not the issue, people, systems and philosophies are the issue.

Edited Tuesday at 02:42 PM by Ducksnort

[CaliSoxFanViaSWside]

12 hours ago, chitownsportsfan said:

I see this as neutral to positive reporting. But all the holes in the swiss cheese have to lineup to get JR out anytime soon.

Or an aneurysm.

[Chicago White Sox]

11 hours ago, fathom said:

My interpretation was that even if JR fell ill today, it would still be years before a change in ownership.

Why?

[Chicago White Sox]

9 hours ago, tray said:

There are statutes in the Federal Code that pertain to ownership stakes, constructive ownership of a family member's stock etc. There are also stautes and rules pertaining to the rights of minority shareholders including the right to examine the books of the corporation. Ishbias could have purchased Reinsforf stake outright and he has plenty of money to do that. Instead Ishbia is going down one of the typical roads that private equity investment investors often head. Some of those strategies include, for example,  destabilizing the corporations financial status, even intentionally. For example, increasing debt dramatically and letting the whole house of cards fold in order to pick up the pieces later while giving the shaft to banks. There are several other strategies that  Private Equity Investors can employ, but I am going to leave it to anyone interested in exploring that to do their own research.

My own view is that Ishbia is a corporate raider that is guided by one primary financial interest - his own. Can he be stopped? I don't know, but I hope so.

JFC what a ridiculously stupid post.

[poppysox]

40 minutes ago, steveno89 said:

Saw a recent report that the Ishbia's may have had issue with the Twins valuation and that could have been a contributing factor of changing plans 

I don't believe the Ishbias bought 35% of a club so that JR could 100% control their investment.  My guess is Ishbias will be taking over sooner rather than later.

[steveno89]

12 minutes ago, poppysox said:

I don't believe the Ishbias bought 35% of a club so that JR could 100% control their investment.  My guess is Ishbias will be taking over sooner rather than later.

I do not doubt that

Just mentioned what I heard from a recent report 

[Chicago White Sox]

For people who think this will take 5 years or more, the question is why?  What do the Reinsdorf’s have to gain waiting so long?  Again, other than Jerry being bored, there is no rationale for keeping their stake in the team when they have a motivated buyer who would likely blow all other alternatives out of the water.  And even crazier is this notion that’s Jerry’s sons will somehow hold onto the team for an extended period of time.  Again, why?  And how would they be able to afford running a team when they minimal accumulated wealth?  They will almost certainly have to sell the White Sox to keep their cash cow that is the Bulls.  Jerry has telegraphed this for years.  The only difference is that with the Ishbia’s already on board and currently the largest shareholders (based on deals that Jerry helped facilitate), it’s clear as day that the transition plan is already in the works.  It’s only a matter of time before this happens unless you believe all stakeholders will act against their own best interests moving forward.