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View Full Version : White Sox now worth $300 million, according to Forbes


cheeses_h_rice
10-31-2005, 11:28 AM
Up $38 million (http://www.suntimes.com/output/worldseries/cst-nws-soxworth31.html) from the beginning of the year.

Tekijawa
10-31-2005, 11:32 AM
Up $38 million (http://www.suntimes.com/output/worldseries/cst-nws-soxworth31.html) from the beginning of the year.
:reinsy
SOOOOOO... "Should I Cell, I mean Sell?"

itsnotrequired
10-31-2005, 11:36 AM
During the season, the Sox pay $1.24 million in rent, plus $4 for every full-priced ticket sold above 1.5 million and $1.50 for every nondiscounted ticket above 2 million.

I knew there was some type of attendance-based payment structure but never bothered looking up the details before. Is that $1.50 for tickets over 2 million in addition to the $4.00 or is it a "discount" once 2 million is reached?

SpartanSoxFan
10-31-2005, 11:50 AM
Where does this net worth rank the Sox within the MLB?

MUsoxfan
10-31-2005, 11:51 AM
I'm surprised the "other" team is valued at only $398m. I recall hearing something about a $600m price tag if the Tribune company was to cell, I mean sell

Tekijawa
10-31-2005, 12:02 PM
I'm surprised the "other" team is valued at only $398m. I recall hearing something about a $600m price tag if the Tribune company was to cell, I mean sell

It would be $600 Million if they sold Premiere Ticket Services with the Cubs.

SouthSide_HitMen
10-31-2005, 12:23 PM
"During the season, the Sox pay $1.24 million in rent, plus $4 for every full-priced ticket sold above 1.5 million and $1.50 for every nondiscounted ticket above 2 million."

The average ticket price is in the $20s for "regular games" up to the low to mid $30s for their "premier games" (Dodgers, NYY, Bost, Cubs).

The club had 9 half price Mondays when non season tickets are 1/2 off. I'd guess 150,000 tickets were sold on these days.

On Tuesdays upper deck tickets were 2 for 1. There were 12 dates and I would guess around 30,000 seats were sold via this promotion.

I would guess another 150,000 - 200,000 were discounted tickets for teachers and other promotions throughout the season.

My best guess is 400,000 discounted tickets were sold during the season leaving just under 2,000,000 at regular price which means $3.25 mil was paid in rent this season (best guess without any figures from the club).

If the average ticket price is say $25 (counting discount / free tickets) and attendance was 2.342 mil revenue was approximately $58 mil from ticket sales of which $3.25 mil was given to the state for rent.

Regular Season attendance increased 400,000 this season and so my best guess is the White Sox earned $8 mil more ($10 mil less $2 mil increase in rent) on seat revenue alone. You had an increase (20% +) in parking, concession and merchandising revenue as well.

None of this counts the additional playoff revenue nor the increased season ticket and regular purchase tickets for 2006.

For 2004 Forbes estimated $131 million in revenue, $8.1 mil net profit (11th in MLB), a $262 mil Market Value and a debt level just under $30 mil.

My best guess for 2005 is $150 - $160 million in revenue (including post season), $15 mil in net profit, a $310 mil net worth on 2006 Opening Day and a very happy Chairman when they left the Championship Flags (2005 and hopefully 1906 and 1901 which were removed for the with last years renovations).

Perhaps someone with more knowledge / better estimates on my 2005 ticket calculations or post season revenue can weigh in and provide more accurate numbers if I was mistaken about comps / discounted tickets or post season revenue.

MadetoOrta
10-31-2005, 02:51 PM
I could see JR sell in the very near future. If I recall correctly, he sold Balcor at its peak just before the 1986 tax reform laws kicked in and took away many real estate tax shelters. At $300,000,000, his group nets out $280,000,000 for a 25-year investment - not too bad. He has his World Series championship. There's another reason - in 2009 there may be an "NHL-like" strike. I don't think JR wants to be around for that. Look for lifelong Sox fan Jim Tyree from Mesirow to make a move.

MUsoxfan
10-31-2005, 02:53 PM
I could see JR sell in the very near future. If I recall correctly, he sold Balcor at its peak just before the 1986 tax reform laws kicked in and took away many real estate tax shelters. At $300,000,000, his group nets out $280,000,000 for a 25-year investment - not too bad. He has his World Series championship. There's another reason - in 2009 there may be an "NHL-like" strike. I don't think JR wants to be around for that. Look for lifelong Sox fan Jim Tyree from Mesirow to make a move.

I'm about 95% sure he won't sell. I'm sure he's always getting offers thrown at him and he's said repeatedly he won't sell.

cheeses_h_rice
10-31-2005, 03:07 PM
Jerry is just the managing partner of a group of investors that own the Sox, and I have read that he doesn't even own the largest share of all the owners, so it's not up to him whether or not to sell. I've read that one of his sons may pick up the reins at some point, too, so any talk of him bailing on the club is premature.

samram
10-31-2005, 03:11 PM
Jerry is just the managing partner of a group of investors that own the Sox, and I have read that he doesn't even own the largest share of all the owners, so it's not up to him whether or not to sell. I've read that one of his sons may pick up the reins at some point, too, so any talk of him bailing on the club is premature.

Right. I think he owns about one-eighth of the club. I believe Lee Stern owns the biggest interest in the team. JR could sell his interest in the team, but I see him passing it along to his kids when he dies. If he does that, it allows his kids to sell without recognizing some huge gains (assuming they wouldn't just want to keep running the family business).

peeonwrigley
10-31-2005, 03:26 PM
I could see JR sell in the very near future. If I recall correctly, he sold Balcor at its peak just before the 1986 tax reform laws kicked in and took away many real estate tax shelters. At $300,000,000, his group nets out $280,000,000 for a 25-year investment - not too bad. He has his World Series championship. There's another reason - in 2009 there may be an "NHL-like" strike. I don't think JR wants to be around for that. Look for lifelong Sox fan Jim Tyree from Mesirow to make a move.

Does anyone know the details of the ownership group? Doesn't Jerry only own like 13% himself? How many people would have to be involved in a decision to sell?

And looking at that $280MM net profit, don't forget that the Sox are in the top half of profitability in the league - especially this season. As long as they stay out of the red, I think this group hangs on to the team.

soxfanreggie
10-31-2005, 03:39 PM
I see him holding on to try and win more titles. If he would sell out, I could see him selling his share of the Bulls. It's not like he needs the money though.

MadetoOrta
10-31-2005, 03:45 PM
My source tells me that JR is most concerned about 2009. I'm not well-versed in the CBA but I'm told the owners intend to have an "NHL-like" lockout in 2009 in order to try to bring the MLBPA to its knees. It will get ugly and JR has indicated he wants out before that. With this World Series championship, I can think of no better time to sell.

Ol' No. 2
10-31-2005, 03:53 PM
My source tells me that JR is most concerned about 2009. I'm not well-versed in the CBA but I'm told the owners intend to have an "NHL-like" lockout in 2009 in order to try to bring the MLBPA to its knees. It will get ugly and JR has indicated he wants out before that. With this World Series championship, I can think of no better time to sell.The current CBA expires in 2006.

Reinsdorf's kids are morons. He's said many times that he's not going to leave the team to them.

Lip Man 1
10-31-2005, 10:38 PM
The last time he said that (in so many words) was when he was interviewed by Bob Sirott on PBS' Chicago Tonight. I think it was in May.

Lip

hawkjt
11-01-2005, 12:06 PM
JR's son's are morons? I believe they are successful businessmen in their own right.

I do agree that I would not be surprised if JR wanted to get out in the next few years. he does not want his kids mired in the same tough business. Bulls are easy compared.

CHEESESOXER
11-01-2005, 12:58 PM
I'm surprised the "other" team is valued at only $398m. I recall hearing something about a $600m price tag if the Tribune company was to cell, I mean sell

They could probably get a free classified listing in their own rag.:D:

Lip Man 1
11-01-2005, 01:48 PM
Sirott asked Uncle Jerry point blank if his sons were going to take over and he immediately said 'no.' This is something that I have heard from two very good sources for years. In fact Reinsdorf's wife Martyl has been very vocal in wanting him to sell for at least the last decade but he refuses to listen to her.

Lip