What does White Sox ownership transition plan mean for team’s future?
The White Sox announced an investment agreement Thursday that basically sets the stage for future transfer of ownership from Jerry Reinsdorf and his group of limited partners to Justin Ishbia and family.
That part wasn't a surprise, since Ishbia dropped pursuit of the Minnesota Twins to increase his stake in the White Sox in February. But what does this latest move mean?
Does it increase the chances of the White Sox building a new stadium, perhaps partnering with the Fire on the Block 78 development? Is it more or less likely the Sox leave Chicago? And will this help the team get any better?
Well, it is interesting how this announcement arrived just two days after Fire owner Joe Mansueto revealed plans to build a soccer stadium in the South Loop.
Is Block 78 big enough for both the Fire and White Sox? Some say yes, others say no — but in theory, a Mansueto-Ishbia partnership makes perfect sense. Together, they could pitch the city and state for infrastructure and mass transit improvements. Two stadiums could share both parking and neighboring developments. And the more private money is involved in this project, the better chance it will actually happen.
The Sox in a South Loop stadium would make the franchise far more valuable than moving to some current Triple-A market. Would Reinsdorf-Ishbia threaten to move, in hopes of attracting government money? That's what Reinsdorf and Eddie Einhorn did when they bought the Sox in 1981.
Ishbia has ties to Nashville, as part owner of the city's MLS team and a Vanderbilt law school graduate. But he's also building a North Shore mansion, and he wrote in a statement how the White Sox investment is an “opportunity to deepen my commitment to the city and team,” according to Crain's Chicago Business.
As it stands today, the White Sox seem solidly committed to staying in Chicago. But ownership could change the equation by threatening to leave as part of stadium negotiations at some point.
There's significant runway included in this agreement. According to the release, Ishbia will make capital infusions in 2025 and '26 to help pay down debt and support team operations. The debt is likely from Rate Field improvements that were already made.
From 2029-33, Reinsdorf will have the option to sell controlling interest to Ishbia. After the 2034 season, Ishbia will have the option to acquire the controlling interest. Reinsdorf would be 93 in 2029, and it's unclear what his heirs might do when that time arrives.
“Having the incredible opportunity to own the Chicago White Sox and be part of Major League Baseball for nearly 50 years has been a life-changing experience,” Reinsdorf said in the statement. “I have always expressed my intent to operate the White Sox as long as I am able and remain committed to returning this franchise to the level of on-field success we all expect and desire.”
It's been a long-held belief that the Reinsdorf family planned to eventually sell the White Sox and keep the Bulls, under the guidance of Jerry's son Michael. So don't expect this transition to affect the Bulls at all. Ishbia and his brother Mat are already majority owners of the Phoenix Suns.
When it comes to Ishbia helping increase the White Sox payroll, that's probably a few years down the road. The Sox are already deep into a rebuild, which is showing some positive signs as far as increasing minor-league talent.
It will be another year or two, at least, before the Sox are in position to chase free agents. So Ishbia's honeymoon phase is already underway.