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Ishbia increasing minority stake in Sox


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  On 2/23/2025 at 3:13 AM, Y2Jimmy0 said:

Are we sure that Melody Hobson is involved at all? I think Ishbia will have the majority of the non Reinsdorf shares most likely after this. 

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Caulfield been spreading that Melody Hobson BS forever.

I found this on Reddit from about a month ago.

Basically in 2021 the Ishbias bought somewhere around 5 % through Reinsdorf's sons SPV.

The Hobson thing was never substantianted .

Of course take this for what it's worth but it seems accurate based on the current situation.

I don't know if what was bought by Michael and Jonathan Reinsdorf's counts as what JR owns. The whole family now could own more than the 20-25% that's reported as what Jerry owns.

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  On 2/24/2025 at 3:48 AM, CaliSoxFanViaSWside said:

Caulfield been spreading that Melody Hobson BS forever.

I found this on Reddit from about a month ago.

Basically in 2021 the Ishbias bought somewhere around 5 % through Reinsdorf's sons SPV.

The Hobson thing was never substantianted .

Of course take this for what it's worth but it seems accurate based on the current situation.

I don't know if what was bought by Michael and Jonathan Reinsdorf's counts as what JR owns. The whole family now could own more than the 20-25% that's reported as what Jerry owns.

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If it's not true at all the Score and various other Chicago sports talk shows were way out in front of their skis...a peremptory search turns up quite a bit.

If they (sons) were simply picking up 5-10% more for the Reinsdorf Family...how would that be a significant outside investment?

Wouldn't it be easier for her to put them to bed by denying ever had an interest in the Sox?

 

Is there another team in baseball where 50%+ of shares are controlled by someone NOT the #1 share holder???

After the valuation slide from #8/9 In MLB all the way down to #17/18?

Edited by caulfield12
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  On 2/24/2025 at 4:13 AM, caulfield12 said:

If it's not true at all the Score and various other Chicago sports talk shows were way out in front of their skis...a peremptory search turns up quite a bit.

If they (sons) were simply picking up 5-10% more for the Reinsdorf Family...how would that be a significant outside investment?

Wouldn't it be easier for her to put them to bed by denying ever had an interest in the Sox?

 

Is there another team in baseball where 50%+ of shares are controlled by someone NOT the #1 share holder???

After the valuation slide from #8/9 In MLB all the way down to #17/18?

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Gee sportstalk  radio out over its skis .That never happens does it ?Sportstalk radio is like verbal clickbait and you've been fanning the dead flames for 4 years . Every question you asked is just speculation. Fans are looking for answers not 4 year old questions no one has the answers to.

Hang in there till Feb. 28th and maybe something good but not earth shattering will happen but likely to create more questions than answers .

Edited by CaliSoxFanViaSWside
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@Look at Ray Ray Run

can you remind me about this again? How does it work where shares aren’t diluted? And what is benefit to Ishbia to buy into it now aside from maybe future promise of full sale?

 

Editor’s note: An earlier version of this article described incorrectly the impact of a new investor on White Sox minority partners. Those partners’ shares will remain the same. They will not be diluted.

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  On 2/24/2025 at 12:51 PM, bmags said:

@Look at Ray Ray Run

can you remind me about this again? How does it work where shares aren’t diluted? And what is benefit to Ishbia to buy into it now aside from maybe future promise of full sale?

 

Editor’s note: An earlier version of this article described incorrectly the impact of a new investor on White Sox minority partners. Those partners’ shares will remain the same. They will not be diluted.
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If they were issuing new shares of equity, then the existing owners’ shares would be diluted.  But Ishbia is simply buying out owners of their existing shares, so ownership stakes shouldn’t change for people who don’t sell.

As for the benefit of buying now, there is none since Jerry has absolute control of everything in the current limited partnership structure.  If Ishbia’s goal it to take on 100% ownership one day, this obviously helps streamline the process, but ultimately he’d only be going through this effort if it’s part of a larger plan.

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So an interesting point that was made in FutureSox’s write-up on this, but one I was thinking about as well.  The original Athletic article pointed out possible share dilution for owners who don’t sell to Ishbia by Friday, but then scrapped that comment in an update to the article.  However, is it possible that Jerry is using a threat of a future capital call to help finance a privately owned stadium to get the other minority owners to sell now at the $1.8B valuation?

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  On 2/24/2025 at 1:17 PM, Chicago White Sox said:

If they were issuing new shares of equity, then the existing owners’ shares would be diluted.  But Ishbia is simply buying out owners of their existing shares, so ownership stakes shouldn’t change for people who don’t sell.

As for the benefit of buying now, there is none since Jerry has absolute control of everything in the current limited partnership structure.  If Ishbia’s goal it to take on 100% ownership one day, this obviously helps streamline the process, but ultimately he’d only be going through this effort if it’s part of a larger plan.

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Oh duh, sorry. Right, key paragraphs was the “letting the partners sell who held out for more in 2021”, was thinking they were both the same group this is talking about.

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  On 2/24/2025 at 12:51 PM, bmags said:

@Look at Ray Ray Run

can you remind me about this again? How does it work where shares aren’t diluted? And what is benefit to Ishbia to buy into it now aside from maybe future promise of full sale?

 

Editor’s note: An earlier version of this article described incorrectly the impact of a new investor on White Sox minority partners. Those partners’ shares will remain the same. They will not be diluted.

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Basically, dilution is much more likely to mean an infusion of cash into the business. It does get a bit tricky, depending on the Sox structure and agreements in place with limited partners (which I'm not going to pretend to understand or even speculate on), but assuming the double value was enough to dilute their percentage without diluting their value and they were on board with the perspective long-term growth from Ishbia's capital infusion, they could have agreed to allow Ishbia to create additional shares and increase cash flow and valuation for a stadium agreement and other capital needs.

In this case, given that there is no additional share creation here, I find it much more likely this is merely a pathway to an outright sale. Unless there is some clause in the partnership agreements - which I highly doubt - Jerry can't force the limited partners to sell, meaning in my opinion, 1.8 was the price they agreed to sell out at; at least the majority of them.

Edit: I like to think they're reading Soxtalk and saw our conversation on dilution so they circled around and updated their article.

Edited by Look at Ray Ray Run
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  On 2/24/2025 at 1:41 PM, Look at Ray Ray Run said:

Basically, dilution is much more likely to mean an infusion of cash into the business. It does get a bit tricky, depending on the Sox structure and agreements in place with limited partners (which I'm not going to pretend to understand or even speculate on), but assuming the double value was enough to dilute their percentage without diluting their value and they were on board with the perspective long-term growth from Ishbia's capital infusion, they could have agreed to allow Ishbia to create additional shares and increase cash flow and valuation for a stadium agreement and other capital needs.

In this case, given that there is no additional share creation here, I find it much more likely this is merely a pathway to an outright sale. Unless there is some clause in the partnership agreements - which I highly doubt - Jerry can't force the limited partners to sell, meaning in my opinion, 1.8 was the price they agreed to sell out at; at least the majority of them.

Edit: I like to think they're reading Soxtalk and saw our conversation on dilution so they circled around and updated their article.

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“Ray Ray KNOWS THE PLAN!  f***!!!”

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  On 2/22/2025 at 1:28 PM, Kyyle23 said:

Day 1 post “guys, I have been here all along.  pm me for use of any suite, on me, in the new park downtown”

tray: 😡😤

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Why do you continue to lie using quotation marks to represent something I never said.  You want a fight bozo?

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  On 2/24/2025 at 1:51 PM, tray said:

Why do you continue to lie using quotation marks to represent something I never said.  You want a fight bozo?

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Tray, quit being a baby.  That’s the general idea of this entire thread.  Please, threaten me.  It definitely makes your chronic bitching accusing and gatekeeping look better 

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If Ishbia abandoned plans to buy the Twins to buy more into the Sox, there must be a larger plan in place.  Hopefully that means he will take over majority ownership in the future.  Whether that's when JR kicks off or not remains to be seen.  Maybe, just maybe, there's some light at the end of the tunnel for White Sox fans.

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  On 2/24/2025 at 1:41 PM, Look at Ray Ray Run said:

Basically, dilution is much more likely to mean an infusion of cash into the business. It does get a bit tricky, depending on the Sox structure and agreements in place with limited partners (which I'm not going to pretend to understand or even speculate on), but assuming the double value was enough to dilute their percentage without diluting their value and they were on board with the perspective long-term growth from Ishbia's capital infusion, they could have agreed to allow Ishbia to create additional shares and increase cash flow and valuation for a stadium agreement and other capital needs.

In this case, given that there is no additional share creation here, I find it much more likely this is merely a pathway to an outright sale. Unless there is some clause in the partnership agreements - which I highly doubt - Jerry can't force the limited partners to sell, meaning in my opinion, 1.8 was the price they agreed to sell out at; at least the majority of them.

Edit: I like to think they're reading Soxtalk and saw our conversation on dilution so they circled around and updated their article.

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I mean it COULD be a power play for Ishiba to do almost an activist investor thing to force changes within the organization, but it seems like a really big assumption for a guy to pay that kind of money for shares, if he doesn't have a path to throne, for a guy who has bought major professional franchises in the past.

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  On 2/24/2025 at 2:48 PM, southsider2k5 said:

I mean it COULD be a power play for Ishiba to do almost an activist investor thing to force changes within the organization, but it seems like a really big assumption for a guy to pay that kind of money for shares, if he doesn't have a path to throne, for a guy who has bought major professional franchises in the past.

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I feel like JR has enough sway with other owners he would just poison the well for ishbia to buy a team. Other owners wouldn't want to set that precedent from their minority owners.

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  On 2/24/2025 at 2:48 PM, southsider2k5 said:

I mean it COULD be a power play for Ishiba to do almost an activist investor thing to force changes within the organization, but it seems like a really big assumption for a guy to pay that kind of money for shares, if he doesn't have a path to throne, for a guy who has bought major professional franchises in the past.

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It would make no sense to stop pursuing something where he would be king, to be a silent partner now. And the Reinsdorfs talked him into it. There has to be some assurances.

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  On 2/24/2025 at 1:29 PM, Chicago White Sox said:

So an interesting point that was made in FutureSox’s write-up on this, but one I was thinking about as well.  The original Athletic article pointed out possible share dilution for owners who don’t sell to Ishbia by Friday, but then scrapped that comment in an update to the article.  However, is it possible that Jerry is using a threat of a future capital call to help finance a privately owned stadium to get the other minority owners to sell now at the $1.8B valuation?

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Here's our article by the way: https://www.futuresox.net/2025/02/24/ishbia-brothers-increase-white-sox-in/

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  On 2/24/2025 at 2:53 PM, bmags said:

I feel like JR has enough sway with other owners he would just poison the well for ishbia to buy a team. Other owners wouldn't want to set that precedent from their minority owners.

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His influence is also waning, and has been for a while.  Getting his ass kicked for the last commish vote was a big slap in the face, as he basically mustered no support.

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  On 2/24/2025 at 2:54 PM, Dick Allen said:

It would make no sense to stop pursuing something where he would be king, to be a silent partner now. And the Reinsdorfs talked him into it. There has to be some assurances.

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Me personally, I 100% believe this is Jerry's coronation of his successor, no matter what his mouthpieces say.

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  On 2/24/2025 at 2:48 PM, southsider2k5 said:

I mean it COULD be a power play for Ishiba to do almost an activist investor thing to force changes within the organization, but it seems like a really big assumption for a guy to pay that kind of money for shares, if he doesn't have a path to throne, for a guy who has bought major professional franchises in the past.

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Correct, there are others paths here but none that are really within the scope of liklihood. 

This is business and the most obvious reason is almost always the right one. Especially given that the Reinsdorfs approached him after the Twins news.

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  On 2/24/2025 at 2:54 PM, Y2Jimmy0 said:
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The problem here is typically capital calls can only be requested up to the amount of the already-invested. 

I can't imagine, given the tenure of most of these investors (I'm sure there are others more recent), that there's much capital to call down. Much of the value has been in gains for most of these limited partners.

Typically these would also need to be in the initial agreements - or some amended version. 

Jerry, in theory, could be asking for capital now, meaning if someone did decline the call he'd be within right to dilute their share.

Generally, the last part makes a little sense but given their removal of the diluted part from the article I'd speculate a capital call isn't happening but absolutely possible. 

Edited by Look at Ray Ray Run
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  On 2/24/2025 at 2:40 PM, hogan873 said:

If Ishbia abandoned plans to buy the Twins to buy more into the Sox, there must be a larger plan in place.  Hopefully that means he will take over majority ownership in the future.  Whether that's when JR kicks off or not remains to be seen.  Maybe, just maybe, there's some light at the end of the tunnel for White Sox fans.

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I think Reinsdorf will relinquish control after the '26 season.  I would be surprised if he has another labor fight in him and this one coming up might be the nastiest one ever.  The '27 season is very likely not to happen.  

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  On 2/24/2025 at 3:07 PM, Harold's Leg Lift said:

I think Reinsdorf will relinquish control after the '26 season.  I would be surprised if he has another labor fight in him and this one coming up might be the nastiest one ever.  The '27 season is very likely not to happen.  

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This is actually a very good point.  Beyond having to oversee a rebuild and solving their TV network issues, Jerry will also have to deal with a labor dispute that is going to negatively impact the bottom line.  Why endure these things at 89 years of age if they can be avoided?  Honestly, the only things preventing a sale right now are the franchise being at a low point and the tax consequences of a sale before Jerry’s death.  The former can be solved through a motivated buyer (it’s clear Ishbia prefers Chicago) and the ladder can be solved through deal structure.

I don’t see any case where Ishbia waits until Jerry’s dead to assume control…it will certainly happen sooner, the only question is how soon and what will be the triggering event.

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