Jerry Reinsdorf
Encyclopedia
Jerry M. Reinsdorf is a CPA
, lawyer and an owner of the MLB's Chicago White Sox
and the NBA
's Chicago Bulls
. He started his professional life as a tax attorney with the Internal Revenue Service
. He has been the head of the White Sox and Bulls for over 20 years.
He made his initial fortune in real estate
, taking advantage of the Frank Lyon Co. v. United States
decision by the United States Supreme Court which allowed economic owners of realty to sell property and lease
it back, while transferring the tax deduction
for depreciation
to the title owner.
As the owner and Chairman of the Chicago Bulls since 1985, he has turned the franchise into a lucrative business that won six NBA Championships
in the 1990s (1991–1993 and 1996–1998). He is controversial for his involvement (along with Jerry Krause
) in breaking up the championship team by not hiring back key personnel such as Phil Jackson
and Michael Jordan
. He hired Jordan as a baseball player during his sabbatical from basketball. He also moved the Bulls from Chicago Stadium
to the United Center
.
As a baseball owner since 1981, he has brought success to the White Sox franchise. The franchise made the playoffs in 1983 for the first time since 1959 and won the World Series
in 2005 for the first time since 1917. He moved the White Sox from Comiskey Park
to New Comiskey Park and then renamed the new park U.S. Cellular Field
. In both sporting endeavors, he has developed a reputation as an anti-labor union hardliner. Since the early 1990s, he has been considered one of the most, if not the most, influential baseball owners. He has been influential in instituting the salary cap
and revenue sharing
. He has also shaped the modern era of baseball by organizing the lucrative internet arm of baseball.
in Brooklyn, and he was the son of a sewing machine
salesman. A life-long baseball fan who grew up in the shadows of Ebbets Field
, Reinsdorf was in the stands the day Jackie Robinson
debuted for the Brooklyn Dodgers, breaking the color barrier which prevented black players from serving on Major League teams.
Reinsdorf earned a bachelor's degree
from George Washington University
in Washington, D.C. He subsequently moved to Chicago in 1957. Reinsdorf became a C.P.A. and lawyer as well as a registered mortgage underwriter and a certified review appraiser
. He leveraged a full scholarship offer from the University of Chicago Law School
into a scholarship from the Northwestern University School of Law
. His first job after graduating from Northwestern in 1960 was a tax delinquency case of Bill Veeck
who at the time owned the White Sox. In 1964, Reinsdorf went into private practice. He developed a specialty in real estate partnership tax shelter
s. He sold his business interests in the real estate partnership in 1973 and formed Balcor, which raised US$650 million to invest in buildings under construction. He sold Balcor in 1982 for $102 million to Shearson Lehman Brothers, the investment banking and brokerage arm of American Express
. However, he continued to be President of the company for several years thereafter.
. He follows previous eccentric White Sox owners Charles Comiskey
, who was known as a miser, and Veeck, who was known as a prankster who gutted the team by trading away promising prospects. Soon after buying the White Sox, he signed Greg Luzinski and Carlton Fisk
. He also tripled the team promotional budget and increased the number of team scouts from 12 to 20. By the 1983 Major League Baseball season
the White Sox made the playoffs with the best record in the Major Leagues. The team initially signed a television deal with the newly founded Sportsvision
under the new leadership of Chairman Reinsdorf and Vice Chairman Eddie Einhorn
, but that arrangement quickly fizzled. Einhorn continues to be Vice Chairman of the White Sox.
In 1985, following in the footsteps of Einhorn who had purchased a United States Football League
franchise in 1984, he purchased the Chicago Bulls as part of a syndicate
for US$16 million and quickly turned the team from one that averaged 6,365 fans per game at the 17,339-seat Chicago Stadium
in 1985 into one with an 8,000-person season ticket
waiting list. He did so by drafting Horace Grant and Scottie Pippen
, and trading for Bill Cartwright to join John Paxson
and Michael Jordan under the tutelage of head coach
Doug Collins
. In 1989, the team signed Phil Jackson
as the final piece of the championship puzzle. From November 20, 1987 through Jordan's 1999 retirement the Bulls sold out every game.
In the months prior to the purchase, Milwaukee businessman Marvin Fishman had been awarded a $16.2 million judgment against the Bulls. Fishman had been illegally blocked from purchasing the team in 1972. Reinsdorf purchased the team from an ownership group that included Lamar Hunt
, George Steinbrenner
, Walter Shorenstein
, Jonathan Kovler, Lester Crown
, Philip Klutznick, and the estate of Arthur Wirtz
, and he held a $9.2 million controlling interest in the team. Reinsdorf's share of 56.8% of the team was purchased from Klutznick, Steinbrenner, Shorenstein and the estate of Wirtz. His purchase ended an era in which the Bulls were managed by committee with decisions by conference call, verdicts by vote. Reinsdorf acquired his majority interests on March 11, 1985 and that same week Kovler sold his 7% stake in the team, bringing Reinsdorf's interest to 63%. The following week Reinsdorf ousted Rod Thorn as general manager
and replaced him with Jerry Krause
.
regular season Division Championships in 1983, 1993, 2000, 2005 and 2008 under Reinsdorf and they won the 2005 World Series
. In addition, they were in first place of the central division at the conclusion of the strike-shortened 1994 Major League Baseball season
. The World Series victory made him only the third owner in the history of North American sports to win a championship in two different sports. The baseball championship boosted the value of the franchise to over $300 million. When Reinsdorf signed Jordan after Jordan's announcement that he wanted to play baseball, many thought Jordan's drawing power provided an ulterior motive. Reinsdorf, however, had tried to convince Jordan not to give up basketball, but he did not attempt to make Jordan the highest paid player in the game like some feel he should have.
As a basketball owner, he has been described by Time
as a "cheapskate", a reference they also use for his baseball persona. As of 1995, the time when Scottie Pippen
was eager to either be traded or be rid of Krause, he had never renegotiated a contract. As a baseball owner, he has had a reputation as one of the most militant, anti-union, hard-line owners. Newsweek
described him as "one of the hardest heads in the 1994 baseball strike". In the baseball offseason between the 1992
and 1993
seasons, he completely abstained from the free agent
market. Reinsdorf was one of the last holdouts to the 1996 labor agreement that instituted the salary cap
while retaining arbitration
rights for the players. His 1996 signing of Albert Belle
made news because of his widely-publicized general opposition to spiraling player salaries. The $55 million signing was a turning point in the decision by the baseball owners to agree to revenue sharing
. The signing also made Reinsdorf the employer of the highest paid Major League Baseball
player and highest paid professional basketball player (Jordan) at the same time. Reinsdorf had just re-signed Jordan after the 1995–96 NBA season. However, Jordan had been underpaid most of his career, and Reinsdorf, who did not feel he could justify the $30 million salary from a business standpoint, immediately realized he was going to soon feel buyer's remorse
. Even his most successful baseball team was not highly paid: when the White Sox won the 2005 World Series
, Reinsdorf had the 13th highest payroll of the 30 Major League Baseball teams.
After Reinsdorf purchased the team in 1981, the team experienced erosion of fan and media support which led to moving the team. He complained about old Comiskey Park
with its foible such as numerous obstructed view seats and threatened to move the White Sox. Among his threats was moving the team to Itasca
or Addison, Illinois
in DuPage County
. Reinsdorf, through his real estate business purchased 100 acres (404,686 m²) in Addison. Chicago Mayor Harold Washington
lobbied the Illinois legislature, and subsequently then-Illinois Governor James R. Thompson
promoted a package of incentives to retain the team in Chicago. The state floated bonds to build New Comiskey Park and let Reinsdorf keep all parking and concession revenues, as well as the $5 million per year from 89 skyboxes. Reinsdorf and Chicago Blackhawks
owner, William Wirtz
contributed $175 million to fund the construction of the largest arena in the United States. When the United Center
opened in 1994 all of the skyboxes were leased for up to eight years. As per the collective bargaining agreement, Reinsdorf was allowed to exclude 60% of luxury suite revenue from "basketball-related income" and thus it is not part of the revenue sharing income.
Reinsdorf is a powerful baseball owner who in 1988 stopped the sale of the Texas Rangers
and later influenced the sale of the Seattle Mariners
. Edward Gaylord
and Gaylord Entertainment Company
had first attempted to buy the Rangers in 1985. Reinsdorf was also said to be largely responsible for the ousting of Fay Vincent
as the Commissioner of Baseball
in 1992. He had previously undermined Vincent by employing Richard Ravitch
as the league's labor negotiator at a salary higher than Vincent's. By the early 1990s, Reinsdorf and acting Baseball commissioner (as well as Milwaukee Brewers
owner) Bud Selig
had assumed baseball's mantle of power from Atlanta Braves
owner, Ted Turner
, and New York Yankees
owner, George Steinbrenner
, who had in turn taken over the sport from Brooklyn/Los Angeles Dodgers
owner, Walter O'Malley
, St. Louis Cardinals
owner, Gussie Busch
, and Oakland Athletics
owner, Charlie O. Finley.
In the 1980s, Reinsdorf, Bud Selig and the American League
President colluded to dissuade the Philadelphia Phillies
from signing Lance Parrish
who was a Detroit Tigers
free agent
. During the strike, Reinsdorf, who was an anti-union hard-liner, was so pessimistic that he did not expect baseball to resume until the 1996 Major League Baseball season
. In the early 1990s he was able to get new stadiums (United Center
and U.S. Cellular Field
) for his teams.
Some fans and columnists have accused Reinsdorf of breaking up the championship Bulls team after their third straight title and sixth in eight years, claiming the Bulls
could have competed for more titles with Michael Jordan
, Scottie Pippen
and good support from the rest of the team that in the eight-year span included Dennis Rodman
, Horace Grant, Toni Kukoc
, Ron Harper
, BJ Armstrong, and coach Phil Jackson
. Some accounts claim that because Jackson feuded with both Reinsdorf and Krause and because both Jordan and Pippen were linked to Jackson, the team was broken up. Forbes
describes the scenario as an example of owner greed. Many note that Phil Jackson's decision not to return as coach and Jordan's retirement during the 1998–99 NBA season lockout
impacted the decisions of several players on whether to return to Chicago. Krause and Reinsdorf had held out hope that they could convince Jackson and Jordan to return and thus had introduced Tim Floyd
as President of Chicago Bulls Basketball Operations instead of head coach
. Reinsdorf had made it clear to Jackson that he was wanted back.
Reinsdorf was one of two bidders for the Phoenix Coyotes
that would commit to not relocating the team. On July 29, 2009 Reinsdorf and his group were approved for ownership of the Coyotes for $148 million. The official sale is set to occur during bankruptcy auction which will take place September 10.
In August 2009, it was reported that Jerry Reinsdorf & Ice Edge LLC had dropped its bid for the Coyotes, leaving only Balsillie and the NHL as bidders for the team. The NHL bid ultimately prevailed, however the league has stated it wishes to re-sell the franchise as soon as possible. On March 24, 2010, it was reported that Reinsdorf is once again a possible buyer for the Phoenix Coyotes. Reinsdorf is has been working out an arrangement to make the deal more feasible with the municipality of . As of August 2011, negotiations between Reinsdorf and the City of Glendale are still in process for the purchase of the Coyotes.
of the internet
rights of Major League Baseball in which all teams have shared equally since Major League Baseball Advanced Media (known as BAM) was established in 2000. Reinsdorf also endeavored to sell the naming rights to the New Comiskey Park to U.S. Cellular
in a $68 million 20-year deal that funded a 7-year $85 million overhaul of the stadium that ended prior to the 2008 Major League Baseball season
. The overhaul included the removal of top rows of the upper deck, replacement of the baby blue
seats with traditionally-colored green ones and dozens of other upgrades. Prior to the 7 year overhaul, the 2001 White Sox barely broke even financially with a $700,000 operating profit on revenues of $101.33 million.
Reinsdorf won a major revenue sharing legal battle with other NBA owners over the Chicago Bulls broadcasts on WGN-TV
. The 55 game schedule on the superstation for an audience of 35 million competed with the NBA broadcasts, but Reinsdorf was permitted to maintain the contract. As recently as 2004, the Bulls continued to be the NBAs most profitable team, earning $49 million in operating income and having an estimated valuation of $356 million.
Reinsdorf feels that if Major League Baseball Players Association
chief, Donald Fehr
, had not opposed steroid
testing, baseball would have taken a stand against steroid use much sooner. He feels that in the end this delayed action will cost some players election into the National Baseball Hall of Fame
.
' Christie Hefner) in Chicago Mayor Richard M. Daley
's initiative to improve standardized test
scores in the 559 Chicago Public Schools
. He has been involved in other extensive charitable work including those of CharitaBulls and White Sox Charities. His philanthropy and community development have been notable in the Near West Side
community area
near the United Center. Twice the White Sox Charities has donated $1 million to the Chicago Park District
with particular attention to funding baseball and softball
fields.
Reinsdorf was inducted into the Appleton, Wisconsin
Baseball Hall of Fame on August 5, 2006 in a ceremony at Fox Cities Stadium
prior to that evening's game between the Midwest League
Wisconsin Timber Rattlers
and Beloit Snappers
. He was so recognized because a former Minor League club, the Appleton Foxes, was a Chicago White Sox affiliate and won three consecutive Midwest League Championships in the early years of Reinsdorf's ownership.
He has been a member of the board of directors
of Shearson Lehman Brothers, Inc., the Northwestern University Law School Alumni Association, LaSalle Bank
, Equity Office Properties and numerous other corporations and charities. He currently serves as a Life Trustee of Northwestern University
. Reinsdorf and his wife, Martyl, have four children and eight grandchildren.
Throughout the years Reinsdorf has been active in the affairs of baseball, serving on the Executive Council and Ownership, Long Range Planning, Restructuring, Expansion, Equal Opportunity, Strategic Planning, Legislative and Labor Policy Committees of Major League Baseball, he also serves on the Boards of MLB Advanced Media and MLB Enterprises.
Certified Public Accountant
Certified Public Accountant is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA...
, lawyer and an owner of the MLB's Chicago White Sox
Chicago White Sox
The Chicago White Sox are a Major League Baseball team located in Chicago, Illinois.The White Sox play in the American League's Central Division. Since , the White Sox have played in U.S. Cellular Field, which was originally called New Comiskey Park and nicknamed The Cell by local fans...
and the NBA
National Basketball Association
The National Basketball Association is the pre-eminent men's professional basketball league in North America. It consists of thirty franchised member clubs, of which twenty-nine are located in the United States and one in Canada...
's Chicago Bulls
Chicago Bulls
The Chicago Bulls are an American professional basketball team based in Chicago, Illinois, playing in the Central Division of the Eastern Conference in the National Basketball Association . The team was founded in 1966. They play their home games at the United Center...
. He started his professional life as a tax attorney with the Internal Revenue Service
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
. He has been the head of the White Sox and Bulls for over 20 years.
He made his initial fortune in real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
, taking advantage of the Frank Lyon Co. v. United States
Frank Lyon Co. v. United States
Frank Lyon Company v. United States, 435 U.S. 561 , is a case in which the U.S. Supreme Court held that the title owner that acquired depreciable real estate as if the owner were a mere conduit or agent was indeed the owner and, for Federal income tax purposes, had the legal right to take tax...
decision by the United States Supreme Court which allowed economic owners of realty to sell property and lease
Lease
A lease is a contractual arrangement calling for the lessee to pay the lessor for use of an asset. A rental agreement is a lease in which the asset is tangible property...
it back, while transferring the tax deduction
Tax deduction
Income tax systems generally allow a tax deduction, i.e., a reduction of the income subject to tax, for various items, especially expenses incurred to produce income. Often these deductions are subject to limitations or conditions...
for depreciation
Depreciation
Depreciation refers to two very different but related concepts:# the decrease in value of assets , and# the allocation of the cost of assets to periods in which the assets are used ....
to the title owner.
As the owner and Chairman of the Chicago Bulls since 1985, he has turned the franchise into a lucrative business that won six NBA Championships
NBA Finals
The NBA Finals is the championship series of the National Basketball Association . The series was named the NBA World Championship Series until 1986....
in the 1990s (1991–1993 and 1996–1998). He is controversial for his involvement (along with Jerry Krause
Jerry Krause
Jerry Krause is a former professional basketball scout and general manager for, among other franchises, the Baltimore Bullets and, most notably, the Chicago Bulls of the National Basketball Association. He is a two-time recipient of the NBA's Executive of the Year award.-Early career:Krause was...
) in breaking up the championship team by not hiring back key personnel such as Phil Jackson
Phil Jackson
Philip Douglas "Phil" Jackson is a retired American professional basketball coach and player. Jackson is widely considered one of the greatest coaches in the history of the National Basketball Association . His reputation was established as head coach of the Chicago Bulls from 1989 through 1998;...
and Michael Jordan
Michael Jordan
Michael Jeffrey Jordan is a former American professional basketball player, active entrepreneur, and majority owner of the Charlotte Bobcats...
. He hired Jordan as a baseball player during his sabbatical from basketball. He also moved the Bulls from Chicago Stadium
Chicago Stadium
The Chicago Stadium was an indoor sports arena and theater in Chicago. It opened in 1929, and closed in 1994.-History:The Stadium hosted the Chicago Blackhawks of the NHL from 1929–1994 and the Chicago Bulls of the NBA from 1967–1994....
to the United Center
United Center
The United Center is an indoor sports arena located in Chicago. It is named after its corporate sponsor, United Airlines. The United Center is home to both the Chicago Bulls of the National Basketball Association and the Chicago Blackhawks of the National Hockey League...
.
As a baseball owner since 1981, he has brought success to the White Sox franchise. The franchise made the playoffs in 1983 for the first time since 1959 and won the World Series
World Series
The World Series is the annual championship series of Major League Baseball, played between the American League and National League champions since 1903. The winner of the World Series championship is determined through a best-of-seven playoff and awarded the Commissioner's Trophy...
in 2005 for the first time since 1917. He moved the White Sox from Comiskey Park
Comiskey Park
Comiskey Park was the ballpark in which the Chicago White Sox played from 1910 to 1990. It was built by Charles Comiskey after a design by Zachary Taylor Davis, and was the site of four World Series and more than 6,000 major league games...
to New Comiskey Park and then renamed the new park U.S. Cellular Field
U.S. Cellular Field
U.S. Cellular Field is a baseball ballpark in Chicago, Illinois. Owned by the Illinois Sports Facilities Authority, it is the home of the Chicago White Sox of Major League Baseball's American League. The park opened for the 1991 season, after the White Sox had spent 81 years at old Comiskey Park...
. In both sporting endeavors, he has developed a reputation as an anti-labor union hardliner. Since the early 1990s, he has been considered one of the most, if not the most, influential baseball owners. He has been influential in instituting the salary cap
Salary cap
In professional sports, a salary cap is a cartel agreement between teams that places a limit on the amount of money that can be spent on player salaries. The limit exists as a per-player limit or a total limit for the team's roster, or both...
and revenue sharing
Revenue sharing
Revenue sharing has multiple, related meanings depending on context.In business, revenue sharing refers to the sharing of profits and losses among different groups. One form shares between the general partner and limited partners in a limited partnership...
. He has also shaped the modern era of baseball by organizing the lucrative internet arm of baseball.
Background
Reinsdorf was born to a Jewish family in Brooklyn, New York. He attended Erasmus Hall High SchoolErasmus Hall High School
Erasmus Hall Campus High School is a four-year public high school in the New York City borough of Brooklyn, United States operated by the New York City Department of Education....
in Brooklyn, and he was the son of a sewing machine
Sewing machine
A sewing machine is a textile machine used to stitch fabric, cards and other material together with thread. Sewing machines were invented during the first Industrial Revolution to decrease the amount of manual sewing work performed in clothing companies...
salesman. A life-long baseball fan who grew up in the shadows of Ebbets Field
Ebbets Field
Ebbets Field was a Major League Baseball park located in the Flatbush section of Brooklyn, New York, USA, on a city block which is now considered to be part of the Crown Heights neighborhood. It was the home of the Brooklyn Dodgers of the National League. It was also a venue for professional football...
, Reinsdorf was in the stands the day Jackie Robinson
Jackie Robinson
Jack Roosevelt "Jackie" Robinson was the first black Major League Baseball player of the modern era. Robinson broke the baseball color line when he debuted with the Brooklyn Dodgers in 1947...
debuted for the Brooklyn Dodgers, breaking the color barrier which prevented black players from serving on Major League teams.
Reinsdorf earned a bachelor's degree
Bachelor's degree
A bachelor's degree is usually an academic degree awarded for an undergraduate course or major that generally lasts for three or four years, but can range anywhere from two to six years depending on the region of the world...
from George Washington University
George Washington University
The George Washington University is a private, coeducational comprehensive university located in Washington, D.C. in the United States...
in Washington, D.C. He subsequently moved to Chicago in 1957. Reinsdorf became a C.P.A. and lawyer as well as a registered mortgage underwriter and a certified review appraiser
Appraiser
An appraiser , is one who sets a value upon property, real or personal. In England the business of an appraiser is usually combined with that of an auctioneer, while the word itself has a similar meaning to that of "valuer." In the United States, the most common usage relates to real estate...
. He leveraged a full scholarship offer from the University of Chicago Law School
University of Chicago Law School
The University of Chicago Law School was founded in 1902 as the graduate school of law at the University of Chicago and is among the most prestigious and selective law schools in the world. The U.S. News & World Report currently ranks it fifth among U.S...
into a scholarship from the Northwestern University School of Law
Northwestern University School of Law
The Northwestern University School of Law is a private American law school in Chicago, Illinois. The law school was founded in 1859 as the Union College of Law of the Old University of Chicago. The first law school established in Chicago, it became jointly controlled by Northwestern University in...
. His first job after graduating from Northwestern in 1960 was a tax delinquency case of Bill Veeck
Bill Veeck
William Louis Veeck, Jr. , also known as "Sport Shirt Bill", was a native of Chicago, Illinois, and a franchise owner and promoter in Major League Baseball. He was best known for his publicity stunts to raise attendance. Veeck was at various times the owner of the Cleveland Indians, St. Louis...
who at the time owned the White Sox. In 1964, Reinsdorf went into private practice. He developed a specialty in real estate partnership tax shelter
Tax shelter
Tax shelters are any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments...
s. He sold his business interests in the real estate partnership in 1973 and formed Balcor, which raised US$650 million to invest in buildings under construction. He sold Balcor in 1982 for $102 million to Shearson Lehman Brothers, the investment banking and brokerage arm of American Express
American Express
American Express Company or AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best...
. However, he continued to be President of the company for several years thereafter.
New purchases
In 1981 he was wealthy enough to purchase the White Sox for $19 million. The purchase was brokered by American National Bank who arranged for a limited partnershipLimited partnership
A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners , there are one or more limited partners . It is a partnership in which only one partner is required to be a general partner.The GPs are, in all major respects,...
. He follows previous eccentric White Sox owners Charles Comiskey
Charles Comiskey
Charles Albert "The Old Roman" Comiskey was a Major League Baseball player, manager and team owner. He was a key person in the formation of the American League and later owned the Chicago White Sox...
, who was known as a miser, and Veeck, who was known as a prankster who gutted the team by trading away promising prospects. Soon after buying the White Sox, he signed Greg Luzinski and Carlton Fisk
Carlton Fisk
Carlton Ernest Fisk , nicknamed "Pudge" or "The Commander", is a former Major League Baseball catcher. During a 24-year baseball career, he played for both the Boston Red Sox and Chicago White Sox .Fisk was known by the nickname "Pudge" due to his 6'2", 220 lb frame...
. He also tripled the team promotional budget and increased the number of team scouts from 12 to 20. By the 1983 Major League Baseball season
1983 Major League Baseball season
The 1983 Major League Baseball season ended with the Baltimore Orioles defeating the Philadelphia Phillies in the fifth game of the World Series. Rick Dempsey was named MVP of the Series...
the White Sox made the playoffs with the best record in the Major Leagues. The team initially signed a television deal with the newly founded Sportsvision
Sportsvision
Sportsvision was a subscription TV service founded by Chicago White Sox owners Jerry Reinsdorf and Eddie Einhorn, and media mogul Fred Eychaner. The service broadcast live sporting events....
under the new leadership of Chairman Reinsdorf and Vice Chairman Eddie Einhorn
Eddie Einhorn
Eddie Einhorn is minority owner and Vice Chairman of the Chicago White Sox.Einhorn produced the nationally syndicated radio broadcast of the NCAA Men's Division I Basketball Championship in 1958...
, but that arrangement quickly fizzled. Einhorn continues to be Vice Chairman of the White Sox.
In 1985, following in the footsteps of Einhorn who had purchased a United States Football League
United States Football League
The United States Football League was an American football league which was in active operation from 1983 to 1987. It played a spring/summer schedule in its first three seasons and a traditional autumn/winter schedule was set to commence before league operations ceased.The USFL was conceived in...
franchise in 1984, he purchased the Chicago Bulls as part of a syndicate
Syndicate
A syndicate is a self-organizing group of individuals, companies or entities formed to transact some specific business, or to promote a common interest or in the case of criminals, to engage in organized crime...
for US$16 million and quickly turned the team from one that averaged 6,365 fans per game at the 17,339-seat Chicago Stadium
Chicago Stadium
The Chicago Stadium was an indoor sports arena and theater in Chicago. It opened in 1929, and closed in 1994.-History:The Stadium hosted the Chicago Blackhawks of the NHL from 1929–1994 and the Chicago Bulls of the NBA from 1967–1994....
in 1985 into one with an 8,000-person season ticket
Season ticket
A season ticket is a ticket that grants privileges over a defined period of time.-Sport:In sport, a season ticket grants the holder access to all regular-season home games for one season without additional charges. The ticket usually offers a discounted price over purchasing a ticket for each of...
waiting list. He did so by drafting Horace Grant and Scottie Pippen
Scottie Pippen
Scottie Maurice Pippen is a retired American professional basketball player who played in the National Basketball Association . He is most remembered for his time with the Chicago Bulls, with whom he was instrumental in six NBA Championships and their record 1995–96 season of 72 wins...
, and trading for Bill Cartwright to join John Paxson
John Paxson
John MacBeth Paxson is a retired American basketball player. He is currently the VP of Basketball Operations of the National Basketball Association's Chicago Bulls.-High school career:...
and Michael Jordan under the tutelage of head coach
Head coach
A head coach, senior coach or manager is a professional at training and developing athletes. They typically hold a more public profile and are paid more than other coaches...
Doug Collins
Doug Collins
Paul Douglas "Doug" Collins is a retired American basketball player, a former four-time NBA All-Star and currently the head coach of the NBA's Philadelphia 76ers.-High school and college:...
. In 1989, the team signed Phil Jackson
Phil Jackson
Philip Douglas "Phil" Jackson is a retired American professional basketball coach and player. Jackson is widely considered one of the greatest coaches in the history of the National Basketball Association . His reputation was established as head coach of the Chicago Bulls from 1989 through 1998;...
as the final piece of the championship puzzle. From November 20, 1987 through Jordan's 1999 retirement the Bulls sold out every game.
In the months prior to the purchase, Milwaukee businessman Marvin Fishman had been awarded a $16.2 million judgment against the Bulls. Fishman had been illegally blocked from purchasing the team in 1972. Reinsdorf purchased the team from an ownership group that included Lamar Hunt
Lamar Hunt
Lamar Hunt was an American sportsman and promoter of American football, soccer, basketball, and ice hockey in the United States and an inductee into three sports' halls of fame. He was one of the founders of the American Football League and Major League Soccer , as well as MLS predecessor the...
, George Steinbrenner
George Steinbrenner
George Michael Steinbrenner III was an American businessman who was the principal owner and managing partner of Major League Baseball's New York Yankees. During Steinbrenner's 37-year ownership from 1973 to his death in July 2010, the longest in club history, the Yankees earned seven World Series...
, Walter Shorenstein
Walter Shorenstein
Walter H. Shorenstein was an American billionaire real estate developer and investor. His company, Shorenstein Company, owned 130 buildings totaling at least of office space at the time of his death. He ranked 371 on the "Forbes 400" list of richest Americans.-Early life:Shorenstein was born in...
, Jonathan Kovler, Lester Crown
Lester Crown
Lester Crown is the son of Chicago financier Henry Crown , who created Material Service with two brothers in 1919, which merged with General Dynamics in 1959. He has been a perennial member of the Forbes 400 list since 1982...
, Philip Klutznick, and the estate of Arthur Wirtz
Arthur Wirtz
Arthur Michael Wirtz was a powerful figure in sports and arena operation. He was the owner of Chicago Stadium, the Bismarck Hotel in Chicago, the Chicago Black Hawks, and the Chicago Bulls...
, and he held a $9.2 million controlling interest in the team. Reinsdorf's share of 56.8% of the team was purchased from Klutznick, Steinbrenner, Shorenstein and the estate of Wirtz. His purchase ended an era in which the Bulls were managed by committee with decisions by conference call, verdicts by vote. Reinsdorf acquired his majority interests on March 11, 1985 and that same week Kovler sold his 7% stake in the team, bringing Reinsdorf's interest to 63%. The following week Reinsdorf ousted Rod Thorn as general manager
General manager
General manager is a descriptive term for certain executives in a business operation. It is also a formal title held by some business executives, most commonly in the hospitality industry.-Generic usage:...
and replaced him with Jerry Krause
Jerry Krause
Jerry Krause is a former professional basketball scout and general manager for, among other franchises, the Baltimore Bullets and, most notably, the Chicago Bulls of the National Basketball Association. He is a two-time recipient of the NBA's Executive of the Year award.-Early career:Krause was...
.
Ownership history
The White Sox have won American LeagueAmerican League
The American League of Professional Baseball Clubs, or simply the American League , is one of two leagues that make up Major League Baseball in the United States and Canada. It developed from the Western League, a minor league based in the Great Lakes states, which eventually aspired to major...
regular season Division Championships in 1983, 1993, 2000, 2005 and 2008 under Reinsdorf and they won the 2005 World Series
2005 World Series
The 2005 World Series, the 101st Major League Baseball championship series, saw the American League champion Chicago White Sox sweep the National League champion Houston Astros four games to none in the best-of-seven-games series, winning their third championship and first since 1917.Home-field...
. In addition, they were in first place of the central division at the conclusion of the strike-shortened 1994 Major League Baseball season
1994 Major League Baseball season
The 1994 Major League Baseball season ended with the infamous players strike ending the season on August 11, 1994.-Strike:As a result of a players' strike, the MLB season ended prematurely on August 11, 1994. No postseason was played...
. The World Series victory made him only the third owner in the history of North American sports to win a championship in two different sports. The baseball championship boosted the value of the franchise to over $300 million. When Reinsdorf signed Jordan after Jordan's announcement that he wanted to play baseball, many thought Jordan's drawing power provided an ulterior motive. Reinsdorf, however, had tried to convince Jordan not to give up basketball, but he did not attempt to make Jordan the highest paid player in the game like some feel he should have.
As a basketball owner, he has been described by Time
Time (magazine)
Time is an American news magazine. A European edition is published from London. Time Europe covers the Middle East, Africa and, since 2003, Latin America. An Asian edition is based in Hong Kong...
as a "cheapskate", a reference they also use for his baseball persona. As of 1995, the time when Scottie Pippen
Scottie Pippen
Scottie Maurice Pippen is a retired American professional basketball player who played in the National Basketball Association . He is most remembered for his time with the Chicago Bulls, with whom he was instrumental in six NBA Championships and their record 1995–96 season of 72 wins...
was eager to either be traded or be rid of Krause, he had never renegotiated a contract. As a baseball owner, he has had a reputation as one of the most militant, anti-union, hard-line owners. Newsweek
Newsweek
Newsweek is an American weekly news magazine published in New York City. It is distributed throughout the United States and internationally. It is the second-largest news weekly magazine in the U.S., having trailed Time in circulation and advertising revenue for most of its existence...
described him as "one of the hardest heads in the 1994 baseball strike". In the baseball offseason between the 1992
1992 Major League Baseball season
The 1992 MLB season saw a resergence in pitching dominance. On average, 1 out of every 7 games pitched that season was a shutout; in 2,106 MLB regular-season games, 298 shutouts were pitched . Two teams pitched at least 20 shutouts each; the Atlanta Braves led the Majors with 24 and the Pittsburgh...
and 1993
1993 Major League Baseball season
The 1993 Major League Baseball season was also the final season of two division play in each league, before the Central Division was added the following season, giving both the NL and AL three divisions each....
seasons, he completely abstained from the free agent
Free agent
In professional sports, a free agent is a player whose contract with a team has expired and who is thus eligible to sign with another club or franchise....
market. Reinsdorf was one of the last holdouts to the 1996 labor agreement that instituted the salary cap
Salary cap
In professional sports, a salary cap is a cartel agreement between teams that places a limit on the amount of money that can be spent on player salaries. The limit exists as a per-player limit or a total limit for the team's roster, or both...
while retaining arbitration
Arbitration
Arbitration, a form of alternative dispute resolution , is a legal technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to one or more persons , by whose decision they agree to be bound...
rights for the players. His 1996 signing of Albert Belle
Albert Belle
Albert Jojuan Belle is a former American Major League Baseball outfielder for the Cleveland Indians, Chicago White Sox, and Baltimore Orioles...
made news because of his widely-publicized general opposition to spiraling player salaries. The $55 million signing was a turning point in the decision by the baseball owners to agree to revenue sharing
Revenue sharing
Revenue sharing has multiple, related meanings depending on context.In business, revenue sharing refers to the sharing of profits and losses among different groups. One form shares between the general partner and limited partners in a limited partnership...
. The signing also made Reinsdorf the employer of the highest paid Major League Baseball
Major League Baseball
Major League Baseball is the highest level of professional baseball in the United States and Canada, consisting of teams that play in the National League and the American League...
player and highest paid professional basketball player (Jordan) at the same time. Reinsdorf had just re-signed Jordan after the 1995–96 NBA season. However, Jordan had been underpaid most of his career, and Reinsdorf, who did not feel he could justify the $30 million salary from a business standpoint, immediately realized he was going to soon feel buyer's remorse
Buyer's remorse
Buyer's remorse is the sense of regret after having made a purchase. It is frequently associated with the purchase of an expensive item such as a car or house...
. Even his most successful baseball team was not highly paid: when the White Sox won the 2005 World Series
2005 World Series
The 2005 World Series, the 101st Major League Baseball championship series, saw the American League champion Chicago White Sox sweep the National League champion Houston Astros four games to none in the best-of-seven-games series, winning their third championship and first since 1917.Home-field...
, Reinsdorf had the 13th highest payroll of the 30 Major League Baseball teams.
After Reinsdorf purchased the team in 1981, the team experienced erosion of fan and media support which led to moving the team. He complained about old Comiskey Park
Comiskey Park
Comiskey Park was the ballpark in which the Chicago White Sox played from 1910 to 1990. It was built by Charles Comiskey after a design by Zachary Taylor Davis, and was the site of four World Series and more than 6,000 major league games...
with its foible such as numerous obstructed view seats and threatened to move the White Sox. Among his threats was moving the team to Itasca
Itasca, Illinois
Itasca is a village in DuPage County, Illinois, United States. The population was 8,302 at the 2000 census.In 2009, BusinessWeek rated Itasca as the 'Best Affordable Suburb' in the state of Illinois...
or Addison, Illinois
Addison, Illinois
Addison is a village located west of the Chicago Metropolitan Area, in DuPage County, Illinois, United States. The population was 35,914 at the 2000 census. The estimated population was 36,378 as of 2002.The Village of Addison lies on Salt Creek...
in DuPage County
DuPage County, Illinois
As of the 2010 Census, the population of the county was 916,924, White Americans made up 77.9% of Dupage County's population; non-Hispanic whites represented 70.5% of the population. Black Americans made up 4.6% of the population. Native Americans made up 0.3% of Dupage County's population...
. Reinsdorf, through his real estate business purchased 100 acres (404,686 m²) in Addison. Chicago Mayor Harold Washington
Harold Washington
Harold Lee Washington was an American lawyer and politician who became the first African-American Mayor of Chicago, serving from 1983 until his death in 1987.- Early years and military service :...
lobbied the Illinois legislature, and subsequently then-Illinois Governor James R. Thompson
James R. Thompson
James Robert Thompson, Jr. , also known as Big Jim Thompson, was the 37th and longest serving Governor of the US state of Illinois...
promoted a package of incentives to retain the team in Chicago. The state floated bonds to build New Comiskey Park and let Reinsdorf keep all parking and concession revenues, as well as the $5 million per year from 89 skyboxes. Reinsdorf and Chicago Blackhawks
Chicago Blackhawks
The Chicago Blackhawks are a professional ice hockey team based in Chicago, Illinois. They are members of the Central Division of the Western Conference of the National Hockey League . They have won four Stanley Cup championships since their founding in 1926, most recently coming in 2009-10...
owner, William Wirtz
Bill Wirtz
William Wadsworth "Dollar Bill" Wirtz was the chief executive officer and controlling shareholder of the family-owned Wirtz Corporation. He was best known as the owner of the Chicago Blackhawks of the National Hockey League, who are part of Wirtz Corp's holdings...
contributed $175 million to fund the construction of the largest arena in the United States. When the United Center
United Center
The United Center is an indoor sports arena located in Chicago. It is named after its corporate sponsor, United Airlines. The United Center is home to both the Chicago Bulls of the National Basketball Association and the Chicago Blackhawks of the National Hockey League...
opened in 1994 all of the skyboxes were leased for up to eight years. As per the collective bargaining agreement, Reinsdorf was allowed to exclude 60% of luxury suite revenue from "basketball-related income" and thus it is not part of the revenue sharing income.
Reinsdorf is a powerful baseball owner who in 1988 stopped the sale of the Texas Rangers
Texas Rangers (baseball)
The Texas Rangers are a professional baseball team in the Dallas-Fort Worth Metroplex, based in Arlington, Texas. The Rangers are a member of the Western Division of Major League Baseball's American League, and are the reigning A.L. Western Division and A.L. Champions. Since , the Rangers have...
and later influenced the sale of the Seattle Mariners
Seattle Mariners
The Seattle Mariners are a professional baseball team based in Seattle, Washington. Enfranchised in , the Mariners are a member of the Western Division of Major League Baseball's American League. Safeco Field has been the Mariners' home ballpark since July...
. Edward Gaylord
Edward Gaylord
Edward Lewis Gaylord was a billionaire businessman and media mogul who built the Gaylord Entertainment Company empire that included The Oklahoman newspaper/ Oklahoma Publishing Co., Gaylord Hotels, the Nashville Network TV Channel ; the Grand Ole Opry, and the Country Music Television Channel as...
and Gaylord Entertainment Company
Gaylord Entertainment Company
The Gaylord Entertainment Company operates a number of hotel, resort, and media companies that were built by Edward Gaylord. It was previously a subsidiary of the Oklahoma City-based Oklahoma Publishing Company, which is owned by the Gaylord family and publishes the Daily Oklahoman newspaper...
had first attempted to buy the Rangers in 1985. Reinsdorf was also said to be largely responsible for the ousting of Fay Vincent
Fay Vincent
Francis Thomas "Fay" Vincent, Jr. is a former entertainment lawyer and sports executive who served as the eighth Commissioner of Major League Baseball from September 13, 1989 to September 7, 1992.-Early life and career:...
as the Commissioner of Baseball
Commissioner of Baseball
The Commissioner of Baseball is the chief executive of Major League Baseball and its associated minor leagues. Under the direction of the Commissioner, the Office of the Commissioner of Baseball hires and maintains the sport's umpiring crews, and negotiates marketing, labor, and television contracts...
in 1992. He had previously undermined Vincent by employing Richard Ravitch
Richard Ravitch
Richard Ravitch is an American politician and businessman who served as the 75th Lieutenant Governor of New York from 2009 to 2010. He was appointed to the position in July 2009 by New York Governor David Paterson...
as the league's labor negotiator at a salary higher than Vincent's. By the early 1990s, Reinsdorf and acting Baseball commissioner (as well as Milwaukee Brewers
Milwaukee Brewers
The Milwaukee Brewers are a professional baseball team based in Milwaukee, Wisconsin, currently playing in the Central Division of Major League Baseball's National League...
owner) Bud Selig
Bud Selig
Allan Huber "Bud" Selig is the ninth and current Commissioner of Major League Baseball, having served in that capacity since 1992 as the acting commissioner, and as the official commissioner since 1998...
had assumed baseball's mantle of power from Atlanta Braves
Atlanta Braves
The Atlanta Braves are a professional baseball club based in Atlanta, Georgia. The Braves are a member of the Eastern Division of Major League Baseball's National League. The Braves have played in Turner Field since 1997....
owner, Ted Turner
Ted Turner
Robert Edward "Ted" Turner III is an American media mogul and philanthropist. As a businessman, he is known as founder of the cable news network CNN, the first dedicated 24-hour cable news channel. In addition, he founded WTBS, which pioneered the superstation concept in cable television...
, and New York Yankees
New York Yankees
The New York Yankees are a professional baseball team based in the The Bronx, New York. They compete in Major League Baseball in the American League's East Division...
owner, George Steinbrenner
George Steinbrenner
George Michael Steinbrenner III was an American businessman who was the principal owner and managing partner of Major League Baseball's New York Yankees. During Steinbrenner's 37-year ownership from 1973 to his death in July 2010, the longest in club history, the Yankees earned seven World Series...
, who had in turn taken over the sport from Brooklyn/Los Angeles Dodgers
Los Angeles Dodgers
The Los Angeles Dodgers are a professional baseball team based in Los Angeles, California. The Dodgers are members of Major League Baseball's National League West Division. Established in 1883, the team originated in Brooklyn, New York, where it was known by a number of nicknames before becoming...
owner, Walter O'Malley
Walter O'Malley
Walter Francis O'Malley was an American sports executive who owned the Brooklyn/Los Angeles Dodgers team in Major League Baseball from to . He served as Brooklyn Dodgers chief legal counsel when Jackie Robinson broke the racial color barrier in...
, St. Louis Cardinals
St. Louis Cardinals
The St. Louis Cardinals are a professional baseball team based in St. Louis, Missouri. They are members of the Central Division in the National League of Major League Baseball. The Cardinals have won eleven World Series championships, the most of any National League team, and second overall only to...
owner, Gussie Busch
Gussie Busch
August "Gussie" Anheuser Busch, Jr. was an American brewing magnate who built the Anheuser-Busch Companies into the largest brewery in the world as company chairman from 1946–75, and became a prominent sportsman as owner of the St...
, and Oakland Athletics
Oakland Athletics
The Oakland Athletics are a Major League Baseball team based in Oakland, California. The Athletics are a member of the Western Division of Major League Baseball's American League. From to the present, the Athletics have played in the O.co Coliseum....
owner, Charlie O. Finley.
In the 1980s, Reinsdorf, Bud Selig and the American League
American League
The American League of Professional Baseball Clubs, or simply the American League , is one of two leagues that make up Major League Baseball in the United States and Canada. It developed from the Western League, a minor league based in the Great Lakes states, which eventually aspired to major...
President colluded to dissuade the Philadelphia Phillies
Philadelphia Phillies
The Philadelphia Phillies are a Major League Baseball team. They are the oldest continuous, one-name, one-city franchise in all of professional American sports, dating to 1883. The Phillies are a member of the Eastern Division of Major League Baseball's National League...
from signing Lance Parrish
Lance Parrish
Lance Michael Parrish, aka "Big Wheel", is an American former professional baseball player. He played in Major League Baseball as a catcher for the Detroit Tigers , Philadelphia Phillies , California Angels , Seattle Mariners , Cleveland Indians , Pittsburgh Pirates , and the Toronto Blue Jays...
who was a Detroit Tigers
Detroit Tigers
The Detroit Tigers are a Major League Baseball team located in Detroit, Michigan. One of the American League's eight charter franchises, the club was founded in Detroit in as part of the Western League. The Tigers have won four World Series championships and have won the American League pennant...
free agent
Free agent
In professional sports, a free agent is a player whose contract with a team has expired and who is thus eligible to sign with another club or franchise....
. During the strike, Reinsdorf, who was an anti-union hard-liner, was so pessimistic that he did not expect baseball to resume until the 1996 Major League Baseball season
1996 Major League Baseball season
*American League Championship Series MVP: Bernie Williams**American League Division Series*National League Championship Series MVP: Javy López**National League Division Series*All-Star Game, July 9 at Veterans Stadium: National League, 6-0; Mike Piazza, MVP...
. In the early 1990s he was able to get new stadiums (United Center
United Center
The United Center is an indoor sports arena located in Chicago. It is named after its corporate sponsor, United Airlines. The United Center is home to both the Chicago Bulls of the National Basketball Association and the Chicago Blackhawks of the National Hockey League...
and U.S. Cellular Field
U.S. Cellular Field
U.S. Cellular Field is a baseball ballpark in Chicago, Illinois. Owned by the Illinois Sports Facilities Authority, it is the home of the Chicago White Sox of Major League Baseball's American League. The park opened for the 1991 season, after the White Sox had spent 81 years at old Comiskey Park...
) for his teams.
Some fans and columnists have accused Reinsdorf of breaking up the championship Bulls team after their third straight title and sixth in eight years, claiming the Bulls
Chicago Bulls
The Chicago Bulls are an American professional basketball team based in Chicago, Illinois, playing in the Central Division of the Eastern Conference in the National Basketball Association . The team was founded in 1966. They play their home games at the United Center...
could have competed for more titles with Michael Jordan
Michael Jordan
Michael Jeffrey Jordan is a former American professional basketball player, active entrepreneur, and majority owner of the Charlotte Bobcats...
, Scottie Pippen
Scottie Pippen
Scottie Maurice Pippen is a retired American professional basketball player who played in the National Basketball Association . He is most remembered for his time with the Chicago Bulls, with whom he was instrumental in six NBA Championships and their record 1995–96 season of 72 wins...
and good support from the rest of the team that in the eight-year span included Dennis Rodman
Dennis Rodman
Dennis Keith Rodman is a retired American Hall of Fame professional basketball player of the National Basketball Association's Detroit Pistons, San Antonio Spurs, Chicago Bulls, Los Angeles Lakers and Dallas Mavericks. Born in Trenton, New Jersey, he was nicknamed "Dennis the Menace" and "The...
, Horace Grant, Toni Kukoc
Toni Kukoc
Toni Kukoč is a retired Croatian professional basketball player. He was renowned for his versatility and passing ability; although his natural position was small forward, he played all five positions on the court with prowess and demonstrated court vision and an outside shooting touch that were...
, Ron Harper
Ron Harper
Ronald "Ron" Harper is a retired American professional basketball player whose career spanned from 1986 to 2001 with four teams in the NBA. At 6 ft 6 in , his position was shooting guard/point guard.- Collegiate career :...
, BJ Armstrong, and coach Phil Jackson
Phil Jackson
Philip Douglas "Phil" Jackson is a retired American professional basketball coach and player. Jackson is widely considered one of the greatest coaches in the history of the National Basketball Association . His reputation was established as head coach of the Chicago Bulls from 1989 through 1998;...
. Some accounts claim that because Jackson feuded with both Reinsdorf and Krause and because both Jordan and Pippen were linked to Jackson, the team was broken up. Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
describes the scenario as an example of owner greed. Many note that Phil Jackson's decision not to return as coach and Jordan's retirement during the 1998–99 NBA season lockout
1998–99 NBA lockout
The 1998–99 NBA lockout was the third lockout in the history of the National Basketball Association . It lasted from July 1, 1998 to January 20, 1999, and forced the 1998–99 season to be shortened to 50 games per team and that season's All-Star Game to be canceled...
impacted the decisions of several players on whether to return to Chicago. Krause and Reinsdorf had held out hope that they could convince Jackson and Jordan to return and thus had introduced Tim Floyd
Tim Floyd
Tim Floyd is an American college basketball coach and the current head coach of the University of Texas at El Paso Miners men's basketball team. He is also a former head coach of several teams in both the NCAA and the NBA, most recently the University of Southern California men's college...
as President of Chicago Bulls Basketball Operations instead of head coach
Head coach
A head coach, senior coach or manager is a professional at training and developing athletes. They typically hold a more public profile and are paid more than other coaches...
. Reinsdorf had made it clear to Jackson that he was wanted back.
Reinsdorf was one of two bidders for the Phoenix Coyotes
Phoenix Coyotes
The Phoenix Coyotes are a professional ice hockey team based in Glendale, Arizona. They are members of the Pacific Division of the Western Conference of the National Hockey League . They play their home games at Jobing.com Arena....
that would commit to not relocating the team. On July 29, 2009 Reinsdorf and his group were approved for ownership of the Coyotes for $148 million. The official sale is set to occur during bankruptcy auction which will take place September 10.
In August 2009, it was reported that Jerry Reinsdorf & Ice Edge LLC had dropped its bid for the Coyotes, leaving only Balsillie and the NHL as bidders for the team. The NHL bid ultimately prevailed, however the league has stated it wishes to re-sell the franchise as soon as possible. On March 24, 2010, it was reported that Reinsdorf is once again a possible buyer for the Phoenix Coyotes. Reinsdorf is has been working out an arrangement to make the deal more feasible with the municipality of . As of August 2011, negotiations between Reinsdorf and the City of Glendale are still in process for the purchase of the Coyotes.
Legacy
Reinsdorf is largely responsible for the revenue sharingRevenue sharing
Revenue sharing has multiple, related meanings depending on context.In business, revenue sharing refers to the sharing of profits and losses among different groups. One form shares between the general partner and limited partners in a limited partnership...
of the internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
rights of Major League Baseball in which all teams have shared equally since Major League Baseball Advanced Media (known as BAM) was established in 2000. Reinsdorf also endeavored to sell the naming rights to the New Comiskey Park to U.S. Cellular
U.S. Cellular
United States Cellular Corporation, d.b.a. U.S. Cellular , owns and operates the sixth largest wireless telecommunications network in the United States, behind Verizon Wireless, AT&T Mobility, Sprint Nextel, T-Mobile USA, and Metro PCS. , they serve about 6.1 million customers in 126 markets in...
in a $68 million 20-year deal that funded a 7-year $85 million overhaul of the stadium that ended prior to the 2008 Major League Baseball season
2008 Major League Baseball season
The 2008 Major League Baseball season began on March 25, 2008 in Tokyo, Japan with the 2007 World Series champion Boston Red Sox defeating the Oakland Athletics at the Tokyo Dome 6–5 in the first game of a two-game series, and ended on September 30 with the host Chicago White Sox defeating the...
. The overhaul included the removal of top rows of the upper deck, replacement of the baby blue
Baby blue
Baby blue is a tint of blue, one of the pastel colors.The first recorded use of baby blue as a color name in English was in 1892.-Bubbles:Bubbles is a pale tint of baby blue....
seats with traditionally-colored green ones and dozens of other upgrades. Prior to the 7 year overhaul, the 2001 White Sox barely broke even financially with a $700,000 operating profit on revenues of $101.33 million.
Reinsdorf won a major revenue sharing legal battle with other NBA owners over the Chicago Bulls broadcasts on WGN-TV
WGN-TV
WGN-TV, virtual channel 9 , is the CW-affiliated television station in Chicago, Illinois built, signed on, and owned by the Tribune Company. WGN-TV's studios and offices are located at 2501 W...
. The 55 game schedule on the superstation for an audience of 35 million competed with the NBA broadcasts, but Reinsdorf was permitted to maintain the contract. As recently as 2004, the Bulls continued to be the NBAs most profitable team, earning $49 million in operating income and having an estimated valuation of $356 million.
Reinsdorf feels that if Major League Baseball Players Association
Major League Baseball Players Association
The Major League Baseball Players Association is the union of professional major-league baseball players.-History of MLBPA:The MLBPA was not the first attempt to unionize baseball players...
chief, Donald Fehr
Donald Fehr
Donald M. Fehr is the executive director of the National Hockey League Players Association. He previously served as the executive director of the Major League Baseball Players Association from 1986-2009....
, had not opposed steroid
Steroid
A steroid is a type of organic compound that contains a characteristic arrangement of four cycloalkane rings that are joined to each other. Examples of steroids include the dietary fat cholesterol, the sex hormones estradiol and testosterone, and the anti-inflammatory drug dexamethasone.The core...
testing, baseball would have taken a stand against steroid use much sooner. He feels that in the end this delayed action will cost some players election into the National Baseball Hall of Fame
National Baseball Hall of Fame and Museum
The National Baseball Hall of Fame and Museum is an American history museum and hall of fame, located at 25 Main Street in Cooperstown, New York, operated by private interests serving as the central point for the study of the history of baseball in the United States and beyond, the display of...
.
Accolades and service
Reinsdorf has been involved (along with the likes of Playboy EnterprisesPlayboy Enterprises
Playboy Enterprises, Inc. is a privately held global media and lifestyle company founded by Hugh Marston Hefner to manage the Playboy magazine empire. Its programming and content are available worldwide on television networks, Websites, mobile platforms and radio...
' Christie Hefner) in Chicago Mayor Richard M. Daley
Richard M. Daley
Richard Michael Daley is a United States politician, member of the national and local Democratic Party, and former Mayor of Chicago, Illinois. He was elected mayor in 1989 and reelected in 1991, 1995, 1999, 2003, and 2007. He was the longest serving Chicago mayor, surpassing the tenure of his...
's initiative to improve standardized test
Standardized test
A standardized test is a test that is administered and scored in a consistent, or "standard", manner. Standardized tests are designed in such a way that the questions, conditions for administering, scoring procedures, and interpretations are consistent and are administered and scored in a...
scores in the 559 Chicago Public Schools
Chicago Public Schools
Chicago Public Schools, commonly abbreviated as CPS by local residents and politicians and officially classified as City of Chicago School District #299 for funding and districting reasons, is a large school district that manages over 600 public elementary and high schools in Chicago, Illinois...
. He has been involved in other extensive charitable work including those of CharitaBulls and White Sox Charities. His philanthropy and community development have been notable in the Near West Side
Near West Side, Chicago
The Near West Side, one of the 77 defined community areas of Chicago, is located , adjacent to the downtown central business district . The rich history of the Near West Side of Chicago has its genesis in the Hull House phenomenon...
community area
Community areas of Chicago
Community areas in Chicago refers to the work of the Social Science Research Committee at University of Chicago which has unofficially divided the City of Chicago into 77 community areas. These areas are well-defined and static...
near the United Center. Twice the White Sox Charities has donated $1 million to the Chicago Park District
Chicago Park District
The Chicago Park District is the oldest and largest park district in the U.S.A, with a $385 million annual budget. It has the distinction of spending the most per capita on its parks, even more than Boston in terms of park expenses per capita...
with particular attention to funding baseball and softball
Softball
Softball is a bat-and-ball sport played between two teams of 10 to 14 players. It is a direct descendant of baseball although there are some key differences: softballs are larger than baseballs, and the pitches are thrown underhand rather than overhand...
fields.
Reinsdorf was inducted into the Appleton, Wisconsin
Appleton, Wisconsin
Appleton is a city in Outagamie, Calumet, and Winnebago Counties in the U.S. state of Wisconsin. It is situated on the Fox River, 30 miles southwest of Green Bay and 100 miles north of Milwaukee. Appleton is the county seat of Outagamie County. The population was 78,086 at the 2010 census...
Baseball Hall of Fame on August 5, 2006 in a ceremony at Fox Cities Stadium
Fox Cities Stadium
Time Warner Cable Field at Fox Cities Stadium is a baseball park in Grand Chute, Wisconsin. It is primarily used for baseball, and is the home field of the Wisconsin Timber Rattlers minor league baseball team. Since 2000, it has also hosted the NCAA Division III College World Series. The stadium...
prior to that evening's game between the Midwest League
Midwest League
The Midwest League is a Class-A minor league baseball league which operates in the Midwestern United States.-History:Six teams – the Belleville Stags, the Centralia Cubs, the Marion Indians, the Mattoon Indians or East Frankfort White Sox, the Mount Vernon Braves, and the West Frankfort...
Wisconsin Timber Rattlers
Wisconsin Timber Rattlers
The Wisconsin Timber Rattlers are a minor league baseball team of the Midwest League, and the Class A affiliate of the Milwaukee Brewers. They are located in Grand Chute, Wisconsin, and are named for timber rattlesnakes. The team plays its home games at Time Warner Cable Field at Fox Cities Stadium...
and Beloit Snappers
Beloit Snappers
The Beloit Snappers are a Class A minor league baseball team, affiliated with the Minnesota Twins, that plays in the Midwest League.Beloit joined the Midwest League as an expansion franchise in 1982. They were a Milwaukee Brewers farm team from its beginning through 2004; they switched to the...
. He was so recognized because a former Minor League club, the Appleton Foxes, was a Chicago White Sox affiliate and won three consecutive Midwest League Championships in the early years of Reinsdorf's ownership.
He has been a member of the board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
of Shearson Lehman Brothers, Inc., the Northwestern University Law School Alumni Association, LaSalle Bank
LaSalle Bank
LaSalle Bank Corporation was the holding company for LaSalle Bank N.A. and LaSalle Bank Midwest N.A. . With $116 billion in assets, it was headquartered at 135 South LaSalle Street in Chicago, Illinois...
, Equity Office Properties and numerous other corporations and charities. He currently serves as a Life Trustee of Northwestern University
Northwestern University
Northwestern University is a private research university in Evanston and Chicago, Illinois, USA. Northwestern has eleven undergraduate, graduate, and professional schools offering 124 undergraduate degrees and 145 graduate and professional degrees....
. Reinsdorf and his wife, Martyl, have four children and eight grandchildren.
Throughout the years Reinsdorf has been active in the affairs of baseball, serving on the Executive Council and Ownership, Long Range Planning, Restructuring, Expansion, Equal Opportunity, Strategic Planning, Legislative and Labor Policy Committees of Major League Baseball, he also serves on the Boards of MLB Advanced Media and MLB Enterprises.