Reinsdorf’s U.S. Cellular Field Lease In Jeopardy?

[ewokpelts]

I think the Sox and the state leaked the sweetheart deal to make the Cubs negotiations more difficult. Chairman Reinsdorf will make some minor concessions and it will be done. The last thing they wanted was Ricketts to bring up the Sox lease when he can't get his deal done.

public opinion is quite the opposite. it's now" well, teh sox got an awesome deal, why not the cubs? they actually draw!"

[Marty34]

public opinion is quite the opposite. it's now" well, teh sox got an awesome deal, why not the cubs? they actually draw!"

 

It's better for the Sox this is out now (same day as Theo's press conference) then when the Cubs are going through their negotiations. The Cubs are going to have a difficult time getting the money they want. The city/state will point to renegotiating the Sox lease as cover for playing hardball with the Cubs.

[NorthSideSox72]

And that would have necessarily been a bad thing?

We would have had another team.

 

 

The blind loyalty to this owner is astounding.

What what would these people act like if they got an owner in here that was in it to win it.

Sports ownership is supposed to be a rich man's toy - not their meal ticket.

We have the same problem with too many of the owners in this city.

 

I don't think I've ever pulled out this card, but this is the time and place... are you actually a Cubs fan? Because you seem to truly despise everything Sox. You even say it would have been not so bad if they left, and that the city would have gotten another team (which, by the way, I am not so sure of). And you really seem to have an irrationally over the top hatred of JR, to the point where you are divorced from reality.

 

[Milkman delivers]

I don't think I've ever pulled out this card, but this is the time and place... are you actually a Cubs fan? Because you seem to truly despise everything Sox. You even say it would have been not so bad if they left, and that the city would have gotten another team (which, by the way, I am not so sure of). And you really seem to have an irrationally over the top hatred of JR, to the point where you are divorced from reality.

 

It's easier to just ignore this guy. He won't respond to what you say. He comes in (at roughly the same time every few days), picks a random assortment of threads, and adds his hatred to the end. He doesn't respond to responses to his own posts.

Edited November 1, 2011 by Milkman delivers

[southsider2k5]

http://www.suntimes.com/8905609-417/emanue...dium-board.html

 

Emanuel dumps Daley nephew, 2 others, from sports stadium board

 

BY FRAN SPIELMAN City Hall Reporter/fspielman@suntimes.com November 18, 2011 1:19AM

 

 

Mayor Rahm Emanuel is dumping all three city members of the Illinois Sports Facilities Authority — including former Mayor Richard M. Daley’s nephew — in a housecleaning that could set the stage to renegotiate the White Sox lease, modify its restaurant deal and, possibly, have the state acquire and renovate Wrigley Field.

 

Peter Q. Thompson, the Daley nephew currently serving as CEO of Perkins Investment Management, will be swept out along with banker Alvin Boutte and attorney William Power.

 

Joining the seven-member board in their places will be: Jim Reynolds, co-founder, chairman and CEO of Loop Capital Markets; Norm Bobins, the former school board president and retired chairman of LaSalle Bank Corporation and Chris Melvin, chairman and CEO of Melvin & Co.

 

Reynolds currently serves as board chairman of the Chicago Housing Authority, where he followed Emanuel’s orders to dump CEO Lewis Jordan amid allegations that Jordan had misused a CHA credit. Emanuel is expected to find a replacement for Reynolds at the CHA.

 

The mayor has charged his three new appointees with reforming the stadium authority, streamlining its operations and making the agency more accountable to Chicago and Illinois taxpayers.

 

As a first step, none of the new members will accept the perks that come with the job: discounted tickets; free food and beverages; special parking privileges and access to skyboxes for non-charity events.

 

“ISFA plays an important role in supporting Chicago’s sports teams and fans across the city, but they should be driven by a commitment to serve taxpayers and be accountable to their best interests,” the mayor said in a statement.

 

“Throughout their careers, these three appointees have established a proven track record of managing finances of large and small organizations with integrity. I am confident they will help bring needed reform to ISFA.”

 

Despite Emanuel’s ouster of Thompson, the two men both attended Thursday’s wedding of Elizabeth “Lally” Daley, the former mayor’s daughter, at Spiaggia.

 

Thompson could not be reached for comment. He helped his uncle raise more than $7 million in less than three months on Daley’s way to a sixth term landslide that would turn out to be Daley’s last.

 

A few months later, Daley rewarded Thompson with an appointment to the authority that built U.S. Cellular Field. Thompson, a die-hard Sox fan, was reappointed in 2009 for a term due to expire next July. Power, whose term was to expire in July 2013, resigned. Boutte’s term had already expired.

 

Emanuel has been sharply critical of the lucrative restaurant deal that paved the way for taxpayers to spend $7 million to build Bacardi in the Park across the street from the Cell without sharing in the proceeds. Instead, the gravy goes to Sox Chairman Jerry Reinsdorf and his investors.

 

The mayor has also hinted that he might support stadium authority chairman Emil Jones in his desire to renegotiate a lease that requires the Sox to pay just $1.5 million in annual rent — with additional payments tied to ticket sales — and gives taxpayers no share of concessions, parking or other stadium receipts.

 

The stadium authority built U.S. Cellular Field to stave off a threatened Sox move to St. Petersburg, Fla. Although the state owns the stadium, no events can be held there without the team’s consent.

 

Once Emanuel makes his mark on a stadium authority controlled by four gubernatorial appointees, there’s another possibility.

 

His board members could attempt to revive a failed 2008 plan to have the state acquire and renovate Wrigley Field. Emanuel wants to find a way to save 97-year-old Wrigley without forfeiting 35 years’ worth of amusement tax growth. The mayor has called that Cubs’ plan a “non-starter.”

[NorthSideSox72]

They may not be able to renegotiate, since the state has zero leverage here (at least for another decade or so). But the Sox may offer some token change to the money situation, just to make the problem go away.

 

[elrockinMT]

(CBS)

 

I knew they shouldn't have torn down old Comiskey Park!

[ewokpelts]

the hits keep coming. the city had to pay for ISFA's hotel tax shortfall for the first time. 1.1 million.

Also interesting is that the BEARS were mentioned in one of these articles for the first time as well. Almost everything has been about how the sox have hosed illinois. The shortfall payment is DIRECTLY linked to the bears financing deal for the toilet bowl.

[southsider2k5]

http://www.chicagotribune.com/news/local/b...,0,534682.story

 

It turns out that Chicago taxpayers may not be on the hook for more than $1 million for renovations at Soldier Field and U.S. Cellular Field.

 

The Illinois Sports Facilities Authority said Thursday that the shortfall in hotel tax revenue it used to make debt payments was $185,000 – not the $1.1 million that a recent audit found – and so the impact on the city will be significantly less, said a new agency board member who attended a Thursday meeting. But the audit findings still provoked Mayor Rahm Emanuel to say taxpayers shouldn't be treated like "an ATM machine."

 

The agency’s chief financial officer said at the meeting that because of an accounting error, the shortfall is not what was reported in an independent October audit, said James Reynolds, founder and CEO of Loop Capital Markets. Reynolds was recently appointed the board by Mayor Rahm Emanuel

 

 

Reynolds said he was satisfied with the explanation that the error was related to the arrival of revenue. Other officials with the agency did not return calls for comment Thursday.

 

“It sounded plausible to me,” Reynolds said. “I was just very happy to hear that the city’s exposure is significantly less than we thought it was.”

 

The $1.1 million shortfall was disclosed in an independent audit obtained by the Tribune through a records request. The firm, , declined comment.

 

Earlier in the day, Emanuel said that Chicago taxpayers should not be treated like cash machines to help cover renovations at the two sports facilities. He said he wants a healthy Chicago sports industry to add the city’s quality of life, but it should not come at taxpayer expense.

 

“I don’t want the taxpayers of the city of Chicago to be treated as if they’re just an ATM machine; they’re not,” he said at an unrelated news conference.

 

The mayor recently replaced three members of the authority’s board with veterans of the financial services industry and said he “gave them clear instructions” about what role he wanted them to play.

 

“You’re not there for yourself, you’re not there socially, you’re there as the voice of the taxpayers of the city of Chicago,” Emanuel said.

 

Hotel tax revenue is the main source the authority uses to pay its annual debt payments for bonds related to work on the baseball stadium and Soldier Field. The state provides an advance at the beginning of the year, which is repaid with hotel tax revenue.

 

This past year, however, hotel tax revenue wasn’t enough, so the state turned to a fund that is Chicago's portion of state income tax. This money goes beyond the annual $5 million subsidy the city provides.

 

Emanuel himself, however, has gone to taxpayers asking for more money.

 

In his first budget that was unanimously approved last month, the mayor raised the cost of vehicle stickers , increased the parking tax , raised the hotel tax by 1 percentage point and put in place a host of fine increases. In addition, water bills would more than double during the next four years.

 

The project, which included some money for work at U.S. Cellular Field, began a decade ago. In undertaking the project, the authority increased its debt, but the city agreed to contribute more if hotel tax revenue fell short.

 

Soldier Field reopened in 2003, but cost overruns made the total for the entire project about $690 million. A Tribune analysis showed the public portion was $432 million.This past year was the first time the tax revenue was inadequate since 2001, when a new law allowed the authority to issue bonds for renovations at Soldier Field.

 

This has been a time of change for the board. Gov. Pat Quinn appointed four new members earlier this year, and he replaced the board chairman -- former Gov. Jim Thompson, who helped create the agency in the 1980s – with former Illinois Senate President Emil Jones. In April, the executive director was let go and has not been replaced.

 

Asked to comment about the $185,000 figure, the mayor’s office released a statement reiterating his earlier ATM comment and added he put three individuals with “impeccable financial credentials on the board to look at the books and ensure ISFA's decisions are in the best interests of the taxpayers.”

[Chisoxfn]

Highest non-premium? Interesting way to see it, as it is the premium seating as a % that makes the average ticket so much more expensive at the other joints. However, you do make a good point, that from a certain perspective, the ticket prices are higher than average. Less than across town, but still higher than other teams. Or you could look at average ticket price, or cheapest available, or whatever.

 

And that number seems odd to me - non-premium tickets average $40+ at the Cell? We have front row UD tickets as a season package, and their regular face for non-premium games is like $20, $24 or $30 depending on the game. Curious what their definition is.

The White Sox are one of the most expensive tickets in baseball. I've been to a lot of stadiums and I'm alwasy baffled by how pricey seats at the Cell are.

[joeynach]

The White Sox are one of the most expensive tickets in baseball. I've been to a lot of stadiums and I'm alwasy baffled by how pricey seats at the Cell are.

 

Ive talked to Brooks about this personally, or via email. I did a Sales report in school a couple years ago and was profiling the selling strategy for large and small markets teams, white sox vs pirates. Brooks basically told me that the Sox strategy is to market, promote, and sell a premium experience, and with that premium pricing is certainly a factor. They essentially view their entertainment product as top quality, not just the product on the field but the ammenties of the ballpark and overall experience of going to USCF. So they charge a premium price. He told me that they really dont want just anyone coming to the park, part of building a premium experience is to have people there that value their $45 lower deck seat, or $550 Scout seat. And those people wanted to be surrounded by other people who want to pay that price and experience premium offerings (food, beverages, fan environment). The sox dont want a stadium full of people who paid $18 per ticket, they would rather have a half full stadium of people who paid $45 a ticket. Its how they market and promote, its how they get good corporate advertising dollars, its how they get good deals for Radio and TV, its how they keep prices high for food, drink, parking, etc. The sox dont want to be the pirates, they dont want to appeal top discount ticket buyers, day camps, church groups, teachers, cops, firefighters, etc. They want to viewed as a white collar establishment and want to sell their product to non price sensitive groups. Thats just their strategy, and ticket prices are one component of that.

[Balta1701]

And yet they try to sell themselves as "Hard working", "Grinder rules", etc., on the field.

[joeynach]

And yet they try to sell themselves as "Hard working", "Grinder rules", etc., on the field.

 

My opinion is actions mean a lot more than words. They (KW) can call themselves whatever they want but its what they do that matters. They went "All in" in 2011, that wouldn't mean anything if they didnt extend payroll to a record level of $127M.

[knightni]

"Blue collar" fans are what the Sox have traditionally sided with, yet they seem to be alienating them with their pricing.

 

How many more people would attend games if the upper deck tickets dropped by $10-15 each?

[Marty34]

"Blue collar" fans are what the Sox have traditionally sided with, yet they seem to be alienating them with their pricing.

 

How many more people would attend games if the upper deck tickets dropped by $10-15 each?

 

One thing I know for certain about the White Sox. They know far better than anyone else how to price their product for maximum revenue.

[caulfield12]

One thing I know for certain about the White Sox. They know far better than anyone else how to price their product for maximum revenue.

 

 

Yay! Marty, for once we agree on something.

 

Although that doesn't mean that most of us who grew up with the Sox in the late 70's or 80's in Old Comiskey Park will agree with that direction. Quite obviously, it's not OUR club to run like it was perceived to be when Bill Veeck was the owner.

Edited December 5, 2011 by caulfield12

[ewokpelts]

Ive talked to Brooks about this personally, or via email. I did a Sales report in school a couple years ago and was profiling the selling strategy for large and small markets teams, white sox vs pirates. Brooks basically told me that the Sox strategy is to market, promote, and sell a premium experience, and with that premium pricing is certainly a factor. They essentially view their entertainment product as top quality, not just the product on the field but the ammenties of the ballpark and overall experience of going to USCF. So they charge a premium price. He told me that they really dont want just anyone coming to the park, part of building a premium experience is to have people there that value their $45 lower deck seat, or $550 Scout seat. And those people wanted to be surrounded by other people who want to pay that price and experience premium offerings (food, beverages, fan environment). The sox dont want a stadium full of people who paid $18 per ticket, they would rather have a half full stadium of people who paid $45 a ticket. Its how they market and promote, its how they get good corporate advertising dollars, its how they get good deals for Radio and TV, its how they keep prices high for food, drink, parking, etc. The sox dont want to be the pirates, they dont want to appeal top discount ticket buyers, day camps, church groups, teachers, cops, firefighters, etc. They want to viewed as a white collar establishment and want to sell their product to non price sensitive groups. Thats just their strategy, and ticket prices are one component of that.

The sox sell PLENTY of tickets to day camps, church groups, teachers, cops, firefighters, ect.

 

Look at this for proof:

 

www.whitesox.com/pfn

 

www.whitesox.com/teacher

 

www.whitesox.com/ffn