Ownership breakdown: ishbias 35%, Reinsdorfs 50%

[WhiteSox2023]

1 hour 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. 

Need a Jerry “I did that!” meme.

[fathom]

28 minutes ago, Chicago White Sox said:

Why?

No idea, but I’ve yet to see NBB be wrong about anything.

[Chicago White Sox]

7 minutes ago, fathom said:

No idea, but I’ve yet to see NBB be wrong about anything.

Did NBB ever signal that Jerry was going to facilitate multiple transactions to increase their ownership stake from like 5% to 35%?  I haven’t seen him really comment on the logic there, but rather just downplay on anything happening soon which is probably what the Reinsdorf’s want out there until a deal is final.

[BrittBurnsFan]

24 minutes ago, Chicago White Sox said:

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.

This is a good take! When people read about Jerry's "kids taking over" or whatever...how old are Jerry's kids?  I am guessing they are at or around retirement age themselves?  Jerry isn't passing this down to some 25 year old who needs to build a future!  I understand that one generation would likely want to continue to pass that stability down...but Jerry's kids are not "kids"!  

[PaleAleSox]

32 minutes ago, Chicago White Sox said:

Did NBB ever signal that Jerry was going to facilitate multiple transactions to increase their ownership stake from like 5% to 35%?  I haven’t seen him really comment on the logic there, but rather just downplay on anything happening soon which is probably what the Reinsdorf’s want out there until a deal is final.

I always assume when he talks about JR keeping the team long term, he is thinking of it in a very non-morbid way, as well. 

[southsider2k5]

37 minutes ago, Chicago White Sox said:

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.

I personally believe that Jerry has two things on his mind.

#1, minimize the tax hit for transfering the Sox and Bulls eventually.

#2, personally pick his successor.

As to #1 Keep in mind, and take this grain of salt, because so many of these reports have been completely wrong, but if he really wants to sell the Sox after his death, the ONLY way to minimize the tax hit to for them to be sold UPON his death.  If they transfer to anyone else, the price resets, and a tax implication on gains starts to build.  If it happens upon his death, then the estate only faces inheritance taxes on the gains, because then the price resets to the price upon inheritance, meaning no gains.  So in other words on death he pays taxes based on a $19 million purchase price to say the $2 billion price of today.  If immediately sold to someone else, they are still worth $2, and there are new gains.  If Michael (or anyone else) takes ownership they start a new tax line at $2, and if they later sell, they again pay taxes on the new gains from $2 and up.  Having a new purchaser in the queue upon his death is the single most important thing here if the historic reports on disposing of the team and saving on taxes as much as possible are true.

On #2, we know Jerry is a power guy.  He always has been.  He has tried to pick each commissioner and takes a special pride in turning down owners he doesn't think are good for the game.  There is zero chance he will leave his OWN franchise to chance.  Not only are his wishes known, I would bet all of gregs houses that his plans are already underway, they are written down, and know to those who need to know them.  If it is Ishbia, it is him.  If it is Hodson, it is her.  If it is someone we have no idea about, those people already know.

It makes logical sense that the dude who is now up to 35% ownership IS the guy who is buying Jerry's shares upon his death (otherwise, why?), it does make sense that they also have a control succession plan.  Whether that is death, or something sooner, who knows.  We all know Jerry will absolutely lie to the media to control a narrative, and feed complete BS to his people to further whatever story he is telling at the time.  I do vibe with the idea that Jerry is sticking around long enough to do the dirty work for the stadium and TV deal, but who knows what the truth actually is.

 

[Lip Man 1]

47 minutes ago, BrittBurnsFan said:

This is a good take! When people read about Jerry's "kids taking over" or whatever...how old are Jerry's kids?  I am guessing they are at or around retirement age themselves?  Jerry isn't passing this down to some 25 year old who needs to build a future!  I understand that one generation would likely want to continue to pass that stability down...but Jerry's kids are not "kids"!  

On the few situations when he has spoken publicly about it he has always said he has told his family that when he dies they should "keep the Bulls and sell the Sox."

[chitownsportsfan]

7 minutes ago, Lip Man 1 said:

On the few situations when he has spoken publicly about it he has always said he has told his family that when he dies they should "keep the Bulls and sell the Sox."

Michael is a fail son with an undergrad degree from ASU and is in his late 30s or early 40s at this point. He's done nothing since taking over the Bulls and cemented them as one of the worst situations in all of the NBA before somehow stumbling into Matas and Giddey. Keep him away from the Sox, one Reinsdorf is enough and hopefully Ishbia cleans house from top to bottom when he takes over.

[WhiteSox2023]

11 minutes ago, chitownsportsfan said:

Michael is a fail son with an undergrad degree from ASU and is in his late 30s or early 40s at this point. He's done nothing since taking over the Bulls and cemented them as one of the worst situations in all of the NBA before somehow stumbling into Matas and Giddey. Keep him away from the Sox, one Reinsdorf is enough and hopefully Ishbia cleans house from top to bottom when he takes over.

Michael Reinsdorf is 58.

[southsider2k5]

11 minutes ago, chitownsportsfan said:

Michael is a fail son with an undergrad degree from ASU and is in his late 30s or early 40s at this point. He's done nothing since taking over the Bulls and cemented them as one of the worst situations in all of the NBA before somehow stumbling into Matas and Giddey. Keep him away from the Sox, one Reinsdorf is enough and hopefully Ishbia cleans house from top to bottom when he takes over.

He's in his late 50s.

[chitownsportsfan]

6 minutes ago, southsider2k5 said:

He's in his late 50s.

 

6 minutes ago, WhiteSox2023 said:

Michael Reinsdorf is 58.

Holy f***. What a loser. Dude did absolutely nothing with his life. I guess it's par for the course at least he doesn't have a criminal history. 

[poppysox]

1 hour ago, steveno89 said:

I do not doubt that

Just mentioned what I heard from a recent report 

I understood what you were doing.  My remark wasn't aimed at you...just my two cents.

[GreatScott82]

The most intruiging part about this whole Ishiba thing is the timeline. I'm assuming the Reinsdorf family ensured the Ishiba brothers that they will have first dibs to purchasing the Reinsdorf shares within a specific time frame. Why else would they purchase more shares and leave the Minnesota offer? My question is, what is that specific timeline? We could all speculate because of the age of Jerry, but could it be possible that Jerry is willing to sell his shares while still alive? 

Edited Tuesday at 04:45 PM by GreatScott82

[Lip Man 1]

59 minutes ago, GreatScott82 said:

The most intruiging part about this whole Ishiba thing is the timeline. I'm assuming the Reinsdorf family ensured the Ishiba brothers that they will have first dibs to purchasing the Reinsdorf shares within a specific time frame. Why else would they purchase more shares and leave the Minnesota offer? My question is, what is that specific timeline? We could all speculate because of the age of Jerry, but could it be possible that Jerry is willing to sell his shares while still alive? 

Anything is possible but that would be a situation completely different from his entire life/career. He wants power and control. 

[PaleAleSox]

1 hour ago, chitownsportsfan said:

 

Holy f***. What a loser. Dude did absolutely nothing with his life. I guess it's par for the course at least he doesn't have a criminal history. 

Minus the age, I'd switch spots with him. 

[2Deep]

1 hour ago, southsider2k5 said:

I personally believe that Jerry has two things on his mind.

#1, minimize the tax hit for transfering the Sox and Bulls eventually.

#2, personally pick his successor.

As to #1 Keep in mind, and take this grain of salt, because so many of these reports have been completely wrong, but if he really wants to sell the Sox after his death, the ONLY way to minimize the tax hit to for them to be sold UPON his death.  If they transfer to anyone else, the price resets, and a tax implication on gains starts to build.  If it happens upon his death, then the estate only faces inheritance taxes on the gains, because then the price resets to the price upon inheritance, meaning no gains.  So in other words on death he pays taxes based on a $19 million purchase price to say the $2 billion price of today.  If immediately sold to someone else, they are still worth $2, and there are new gains.  If Michael (or anyone else) takes ownership they start a new tax line at $2, and if they later sell, they again pay taxes on the new gains from $2 and up.  Having a new purchaser in the queue upon his death is the single most important thing here if the historic reports on disposing of the team and saving on taxes as much as possible are true.

On #2, we know Jerry is a power guy.  He always has been.  He has tried to pick each commissioner and takes a special pride in turning down owners he doesn't think are good for the game.  There is zero chance he will leave his OWN franchise to chance.  Not only are his wishes known, I would bet all of gregs houses that his plans are already underway, they are written down, and know to those who need to know them.  If it is Ishbia, it is him.  If it is Hodson, it is her.  If it is someone we have no idea about, those people already know.

It makes logical sense that the dude who is now up to 35% ownership IS the guy who is buying Jerry's shares upon his death (otherwise, why?), it does make sense that they also have a control succession plan.  Whether that is death, or something sooner, who knows.  We all know Jerry will absolutely lie to the media to control a narrative, and feed complete BS to his people to further whatever story he is telling at the time.  I do vibe with the idea that Jerry is sticking around long enough to do the dirty work for the stadium and TV deal, but who knows what the truth actually is.

 

Great post!  Very logical and informative.

 

[caulfield12]

The way things are going...there might actually be a "negative" cost basis as this team would be foundering 3-5 years from now without a new stadium funding plan as well as positive revenue producing broadcasting plan in place.

That obviously depends on unknown factors such as inflation...recession, economic cycles, but it's been pretty much a straight line up for the majority of other franchises for the past 10-15 years.

The White Sox, obviously due to the last 2-3 seasons of ineptitude and increasing uncertainty about JR/Getz, their (projected) future ability to compete in one of the oldest stadiums in baseball and with unknown FA spending budgets...their valuation is somehow going backwards even in the face of a "rising tide floats all boats" momentum.

Edited Tuesday at 06:45 PM by caulfield12

[Y2Jimmy0]

18 hours ago, fathom said:

Don’t get hopes up, as NBB says any sale is likely to take at least 5 years

It's still great news that the Ishbia's will very likely be the next owners. This sets them up to have 85% whenever Jerry dies or lets go of the rope. 

18 hours ago, caulfield12 said:

This is just depressing...

Why would Ishbia put himself in this seemingly untenable position?

He has nothing to gain helping to finance a new stadium if the Reinsdorfs will end up taking the credit ultimately.

Why would buying the Twins outright not be the better play?  Inside information on Correa's health lol?

This just doesn't make any sense at all from a practical standpoint.

If anything...the valuation will continue to shrink if the US enters recession territory.  And CHSN looks like a total fiasco so far.

It makes plenty of sense. Getting the team ultimately at a $1.8 billion valuation while simultaneously developing the land around the new stadium and profiting forever on the ballpark village environment. 

15 hours ago, WhiteSox2023 said:

Sad but true, and I doubt things change at all if Michael takes over.

Michael isn't taking over. The Reinsdorfs don't have any interest in that. It's why they reached out to the Ishbias to buy out so many shares. 

[WhiteSox2023]

7 minutes ago, Y2Jimmy0 said:

It's still great news that the Ishbia's will very likely be the next owners. This sets them up to have 85% whenever Jerry dies or lets go of the rope. 

It makes plenty of sense. Getting the team ultimately at a $1.8 billion valuation while simultaneously developing the land around the new stadium and profiting forever on the ballpark village environment. 

Michael isn't taking over. The Reinsdorfs don't have any interest in that. It's why they reached out to the Ishbias to buy out so many shares. 

Thanks for sharing.  But one poster isn’t going to be happy about any of this.

[fathom]

20 minutes ago, Y2Jimmy0 said:

It's still great news that the Ishbia's will very likely be the next owners. This sets them up to have 85% whenever Jerry dies or lets go of the rope. 

It makes plenty of sense. Getting the team ultimately at a $1.8 billion valuation while simultaneously developing the land around the new stadium and profiting forever on the ballpark village environment. 

Michael isn't taking over. The Reinsdorfs don't have any interest in that. It's why they reached out to the Ishbias to buy out so many shares. 

He’s also said the 78 is the most likely spot for next stadium

[caulfield12]

31 minutes ago, Y2Jimmy0 said:

It's still great news that the Ishbia's will very likely be the next owners. This sets them up to have 85% whenever Jerry dies or lets go of the rope. 

It makes plenty of sense. Getting the team ultimately at a $1.8 billion valuation while simultaneously developing the land around the new stadium and profiting forever on the ballpark village environment. 

Michael isn't taking over. The Reinsdorfs don't have any interest in that. It's why they reached out to the Ishbias to buy out so many shares. 

Which ballpark location are you referring to here?

[Y2Jimmy0]

14 minutes ago, caulfield12 said:

Which ballpark location are you referring to here?

The 78 

[DoUEvenShift]

26 minutes ago, fathom said:

He’s also said the 78 is the most likely spot for next stadium

don't tell Tray

[Chicago White Sox]

7 minutes ago, DoUEvenShift said:

don't tell Tray

How dare that private equity scumbag build a ballpark in the 78!  Think of the ingress / egress challenges and lack of parking!  Some people may have to take public transportation with all the common folk!!

[southsider2k5]

17 minutes ago, Chicago White Sox said:

How dare that private equity scumbag build a ballpark in the 78!  Think of the ingress / egress challenges and lack of parking!  Some people may have to take public transportation with all the common folk!!

Sox fans are obviously to dumb to do it, even though Cub fans have been for a century plus.