Jerry Reinsdorf open to selling the White Sox per Britt Ghiroli

[southsider2k5]

23 minutes ago, southsider2k5 said:

Whose shares?  If it is anyone other than his shares, those profits go out the door with the guy whose shares got bought,  And if it was his shares, why would he keep that money in the company and not in his estate?  If I own something and sell it, I am not longer in that business.  If I own 10% of Google, and I sell it, I no longer own google, and those profits exit the building, with a new 10% owner entering.

Are you expecting an additional capital infusion after the purchase?  Or do you think that Jerry and everyone else will be voting new shares to sell and water down their own ownership share thus diluting their own profits?

 

Since the question seems to be getting ignored, I will post this again, this time with numbers to make the example of new shares being issued.

If the White Sox are a 2 billion dollar operation today, that means Jerry owning 20% makes his share of the Sox worth $400 million.  Obviously you can adjust that figure to whatever he actually owns today, but I am going to use the historic 20% figure to put numbers so all of this. 

So a 20% share = $400 million in value

30% = $600 million

40% = $800 million and so on.

Call each "share" 1% of the team for simplicity's sake.  Jerry currently owns 20 shares out of 100.  The other 80 are out there somewhere in the ether

If you issue more shares, the valuation of the company does not change.  It is still the same company, with the same value and revenue, but now someone else owns a new piece, but everyone else's share gets deluded by a respective amount.

So for example, say the Sox want to raise $500 million, or approximately the worth of 25% of the team towards a stadium.  There are now 125 shares, but Jerry still owns 20 shares.  Those 20 shares are now only 16% of the company, instead of his former 20%.  The team still is worth $2 billion, so now Jerry's shares which were worth $400 million, are now worth $320 million.  The question becomes, is building a stadium going to generate enough new revenue and value that his shares go up in value more than the $80 million in equity he just gave away to get the stadium built?  Say the stadium adds $500 million in valuation to the franchise, to make it worth $2.5 billion, Jerry's 16% deluded holdings are again worth $400 million.  So for this to be profitable, the Sox have to add 25% in their valuation on their final selling price before Jerry dies.  Again adjust the numbers to your liking, but I don't see this making a lot of sense for a guy who is 88 years old and planning his estate.  Maybe if he had a decade plus to see a stadium get funded, built, and the crowds start to create revenue, but right now, that is probably a 5 year plan just getting the stadium funded and built, even if you put it on the timetable of when the lease expires in 2029.

[77 Hitmen]

18 hours ago, chetkincaid said:

Jerry Reinsdorf blocked the sale of the Cubs to Mark Cuban, didn't he? He'd never sell the White Sox to Cuban.

He didn't want Cuban and his deep pockets as a competing owner.  That's different than selling a team to him.  I find it hard to believe that he'd object to selling to Cuban if he was the highest bidder.  

I'm not saying that Cuban would buy this team, I'm just saying that this is Jerry Reinsdorf - he'll sell the team to the highest bidder no matter who it is.  

[Lip Man 1]

Wise advice offered in this column in my opinion:

https://chicago.suntimes.com/white-sox/2024/10/16/jerry-reinsdorf-white-sox-dave-stewart-athletic-chicago-nashville-oakland-mlb

Edited 17 hours ago by Lip Man 1

[Texsox]

4 hours ago, Dick Allen said:

I love the we don't comment on rumors and speculation when they are the ones who leaked the info. They take us all for fools.

The fact that he is "negotiating" strickly with Stewart's group shows you he isn't serious. It's a political play.Call the bluff.

Or Stewert's group leaked it to build public demand for JR selling. 

[Texsox]

19 minutes ago, 77 Hitmen said:

He didn't want Cuban and his deep pockets as a competing owner.  That's different than selling a team to him.  I find it hard to believe that he'd object to selling to Cuban if he was the highest bidder.  

I'm not saying that Cuban would buy this team, I'm just saying that this is Jerry Reinsdorf - he'll sell the team to the highest bidder no matter who it is.  

As anyone would. The only potential is if MLB owners would block that owner. 

[77 Hitmen]

2 minutes ago, Texsox said:

As anyone would. The only potential is if MLB owners would block that owner. 

Yep.  As much as I hate JR, he'd just be doing what any other owner would do - sell to the highest bidder as long as that sale isn't blocked.

[77 Hitmen]

13 hours ago, southsider2k5 said:

That's why I would guess the Hodson group.  They are already connected to the Sox, as is Stewart thru TLR, for whom Jerry met with Nashville for.  It fits together naturally.  He'd be turning this over to people he knows and trusts.

Who or what is the Hodson group?   

Sorry if this was answered elsewhere in this thread and I missed it.  I just don't know who they are.

[southsider2k5]

9 minutes ago, 77 Hitmen said:

Who or what is the Hodson group?   

Sorry if this was answered elsewhere in this thread and I missed it.  I just don't know who they are.

I apologize for the missepelling, lol, it's Hobson with a B instead of a D.  The wife of George Lucas and a multiple billionaire in her own right, they are rumors to have bought a decent sized minority share of the White Sox a few years back.

https://www.linkedin.com/in/mellodyhobson/

[Balta1701]

8 minutes ago, 77 Hitmen said:

Yep.  As much as I hate JR, he'd just be doing what any other owner would do - sell to the highest bidder as long as that sale isn't blocked.

This is NOT what any other owner would do. 

A responsible owner in the 3rd biggest media market in MLB would take advantage of the fact that they have a strong credit rating and are associated with a major real estate company and would privately finance this stadium. They would ask for some public support for this deal, but wouldn't threaten to walk to a worse media market. While this would put the franchise into some debt, the combination of the new ballpark, revenues from it, and the huge revenue potential associated with developing a plot of real estate in urban Chicago would be a game changer. Even privately financed, successfully completing this project would be a massive boost to franchise value. This project, with Related as a partner, is a huge overall win for the White Sox if they get it done.

On top of that, if the Nashville group can come up with the money, that owner then gets to take advantage of an extra $50 or $75 million in income from the new franchise expansion fee.

A responsible other owner would look to get this deal done in Chicago. They would recognize that its going to be a partnership, that the state will put in some money to make the site workable and as a tax break to get it developed, but the government will not fund the whole project as that would be stupid for them to do. It is only Jerry Reinsdorf who believes that he shouldn't have to put up any money for this, who is willing to walk to a smaller media market if he can't hurt the taxpayers of Illinois enough.

Jerry Reinsdorf is willing to move to a smaller market and take less money if he doesn't get his way from the taxpayers of Illinois. 

[Look at Ray Ray Run]

2 hours ago, Kyyle23 said:

Stewart’s group sounds like a lot of promises without a lot of obvious funds.  I read somewhere that they made “efforts” to buy the marlins which was basically like “trust us we will come up with the money”

Their bid was "here's what we might offer," which was 60% of what it sold for. 

[caulfield12]

49 minutes ago, southsider2k5 said:

Since the question seems to be getting ignored, I will post this again, this time with numbers to make the example of new shares being issued.

If the White Sox are a 2 billion dollar operation today, that means Jerry owning 20% makes his share of the Sox worth $400 million.  Obviously you can adjust that figure to whatever he actually owns today, but I am going to use the historic 20% figure to put numbers so all of this. 

So a 20% share = $400 million in value

30% = $600 million

40% = $800 million and so on.

Call each "share" 1% of the team for simplicity's sake.  Jerry currently owns 20 shares out of 100.  The other 80 are out there somewhere in the ether

If you issue more shares, the valuation of the company does not change.  It is still the same company, with the same value and revenue, but now someone else owns a new piece, but everyone else's share gets deluded by a respective amount.

So for example, say the Sox want to raise $500 million, or approximately the worth of 25% of the team towards a stadium.  There are now 125 shares, but Jerry still owns 20 shares.  Those 20 shares are now only 16% of the company, instead of his former 20%.  The team still is worth $2 billion, so now Jerry's shares which were worth $400 million, are now worth $320 million.  The question becomes, is building a stadium going to generate enough new revenue and value that his shares go up in value more than the $80 million in equity he just gave away to get the stadium built?  Say the stadium adds $500 million in valuation to the franchise, to make it worth $2.5 billion, Jerry's 16% deluded holdings are again worth $400 million.  So for this to be profitable, the Sox have to add 25% in their valuation on their final selling price before Jerry dies.  Again adjust the numbers to your liking, but I don't see this making a lot of sense for a guy who is 88 years old and planning his estate.  Maybe if he had a decade plus to see a stadium get funded, built, and the crowds start to create revenue, but right now, that is probably a 5 year plan just getting the stadium funded and built, even if you put it on the timetable of when the lease expires in 2029.

Diluted...

And his capital gains taxes are not going to be in the hundreds of millions of dollars at 20%.

One would have to think Hobson and Lucas are still the most obvious play here to buy out the other 60%.. or maybe they also told JR they want to cash out, having considered buying the whole thing but decided the profitability of financing a new stadium was prohibitive unless they just wanted to make a civic gift to the city in trade for something else.

 

And won't the rest of MLB owners flip out when three more playoff teams come out of the AL Central next year...and 50/50 in 2026 again unless Schultz Smith Montgomery Quero and whoever they get for Crochet can at least get to 95-105 losses???

[Kyyle23]

11 minutes ago, Look at Ray Ray Run said:

Their bid was "here's what we might offer," which was 60% of what it sold for. 

I will gladly pay you on Tuesday for a hamburger today!

 

just let me shake the change out of my couch for the stadium 

[46DidIt]

3 hours ago, hi8is said:

The guy really is a s%*# bag isn’t he… for clarity, the guy being Reinsdorf.

I don’t think any clarity was required there. You could have just posted ‘shitbag’ and I’d have been fairly confident to whom you were referring

[southsider2k5]

7 minutes ago, caulfield12 said:

Diluted...

And his capital gains taxes are not going to be in the hundreds of millions of dollars at 20%.

One would have to think Hobson and Lucas are still the most obvious play here to buy out the other 60%.. or maybe they also told JR they want to cash out, having considered buying the whole thing but decided the profitability of financing a new stadium was prohibitive unless they just wanted to make a civic gift to the city in trade for something else.

 

And won't the rest of MLB owners flip out when three more playoff teams come out of the AL Central next year...and 50/50 in 2026 again unless Schultz Smith Montgomery Quero and whoever they get for Crochet can at least get to 95-105 losses???

Yeah, if he went from 20% of $20 million at $4 million to 20% of $2 billion at $400 million, that is a gain on $396 million, which is like $80 million.

[Look at Ray Ray Run]

1 hour ago, southsider2k5 said:

Since the question seems to be getting ignored, I will post this again, this time with numbers to make the example of new shares being issued.

If the White Sox are a 2 billion dollar operation today, that means Jerry owning 20% makes his share of the Sox worth $400 million.  Obviously you can adjust that figure to whatever he actually owns today, but I am going to use the historic 20% figure to put numbers so all of this. 

So a 20% share = $400 million in value

30% = $600 million

40% = $800 million and so on.

Call each "share" 1% of the team for simplicity's sake.  Jerry currently owns 20 shares out of 100.  The other 80 are out there somewhere in the ether

If you issue more shares, the valuation of the company does not change.  It is still the same company, with the same value and revenue, but now someone else owns a new piece, but everyone else's share gets deluded by a respective amount.

So for example, say the Sox want to raise $500 million, or approximately the worth of 25% of the team towards a stadium.  There are now 125 shares, but Jerry still owns 20 shares.  Those 20 shares are now only 16% of the company, instead of his former 20%.  The team still is worth $2 billion, so now Jerry's shares which were worth $400 million, are now worth $320 million.  The question becomes, is building a stadium going to generate enough new revenue and value that his shares go up in value more than the $80 million in equity he just gave away to get the stadium built?  Say the stadium adds $500 million in valuation to the franchise, to make it worth $2.5 billion, Jerry's 16% deluded holdings are again worth $400 million.  So for this to be profitable, the Sox have to add 25% in their valuation on their final selling price before Jerry dies.  Again adjust the numbers to your liking, but I don't see this making a lot of sense for a guy who is 88 years old and planning his estate.  Maybe if he had a decade plus to see a stadium get funded, built, and the crowds start to create revenue, but right now, that is probably a 5 year plan just getting the stadium funded and built, even if you put it on the timetable of when the lease expires in 2029.

There are absolutely ways to sell 49% of joint shares without diluting equity and leverage some of those funds to build a stadium. In fact, some can cash out all together if they don't want to reinvest the equity in a loan or different class share type. 

Edited 16 hours ago by Look at Ray Ray Run

[southsider2k5]

3 minutes ago, Look at Ray Ray Run said:

There are absolutely ways to sell 49% of joint shares without diluting equity and leverage some of those funds to build a stadium. In fact, some can cash out all together if they don't want to reinvest the equity in a loan or different class share type. 

Let's hear it.

[Paulie4Pres]

Anyone falling for this bullshit is a moron. Just so happens it's coming from Stewart, who is good buddies with TLR, who still works for the White Sox? Reinsdorf is such a transparent loser.

Build your own stadium you cheap piece of s%*#. Or just die and make all Sox fans happy.

Edited 16 hours ago by Paulie4Pres

[GREEDY]

Of all of Jerry's sins, using leverage to try and get a stadium deal is not in the top 10.  

This is how the game is played, almost everywhere, by almost every owner.

Honestly, lets hope he is actually trying to build a new ballpark and this isn't some dog and pony show to appease minority owners and ultimately to get another favorable lease in Bridgeport.... which is what I fear is happening.  

 

[GreatScott82]

12 minutes ago, Paulie4Pres said:

Anyone falling for this bullshit is a moron. Just so happens it's coming from Stewart, who is good buddies with TLR, who still works for the White Sox? Reinsdorf is such a transparent loser.

Build your own stadium you cheap piece of s%*#. Or just die and make all Sox fans happy.

I'm curious how Stewart acquired a potential group that has over $2 billion to spend for an established franchise? Once again-- until more potential bidders come onto the scene, we could all assume that this is a ploy to get that tax payer $$ for the stadium in the southloop. It's pretty obnoxious to openly sell your team to a bidder actively trying to get a MLB franchise in another city. Talk about a big FU to the city that made him rich beyond comprehension. Disgusting! 

[Lip Man 1]

Another good column:

https://soxmachine.com/2024/10/is-jerry-reinsdorf-actually-serious-about-selling-the-white-sox/

[Paulie4Pres]

6 minutes ago, Lip Man 1 said:

Another good column:

https://soxmachine.com/2024/10/is-jerry-reinsdorf-actually-serious-about-selling-the-white-sox/

To summarize: "Making money hand over fist used to be incredibly easy, because we worked with cable providers to steal money from their customers. The climate has changed, and people aren't willing to give us free money anymore. I find myself struggling to figure out how to make money when it's not just handed to me."

Imagine using the word "fear" because your greedy billionaire ass doesn't know how to make your billion dollar franchise steal money from customers anymore.

f*** this entitled prick.

[tray]

Related development's pressure to sell the WSox on a move to the 78 did nothing but cause a lot of uncertainty about the future of the franchise. GRF is not in poor condition needing replacement like old Comiskey was. I vigorously opposed Related and their full court press to obtain public financing for a project that largely made no sense for the WSox or for tax payers.  Well, goodbye old friend.

Edited 15 hours ago by tray

[bmags]

46 minutes ago, Paulie4Pres said:

Anyone falling for this bullshit is a moron. Just so happens it's coming from Stewart, who is good buddies with TLR, who still works for the White Sox? Reinsdorf is such a transparent loser.

Build your own stadium you cheap piece of s%*#. Or just die and make all Sox fans happy.

I don’t know, I’m starting to think even his death will be the start of some horrid murder mystery saga of events 

[Look at Ray Ray Run]

56 minutes ago, southsider2k5 said:

Let's hear it.

If I get back to a computer I can provide you with an example. 

[Lip Man 1]

Joe Cowley has a story in the Sun-Times on how this could impact the Bulls, he has different sources of course being in the NBA but I was struck by this line in his story:

After a report surfaced Wednesday that said Reinsdorf was “open to selling” the Sox, the question around the United Center was, if the story was true — some in the know have strenuously dismissed it — what would it mean for the Bulls?