Chicago White Sox owner and chairman Jerry Reinsdorf gave an exclusive interview to Crain’s Chicago Business this week, and in the process gave new details on the cost and scope of the team’s proposed stadium project in the South Loop.
Reinsdorf, who met with lawmakers during a visit to Springfield this week, says that the total cost of the first phase of the ballpark project in the South Loop could hit $4 billion, and that the Sox would seek public funding to complete the project, according to the interview.
The project would include not just the ballpark, but also infrastructure around the stadium, as well as a hotel and apartments, along with a variety of businesses.
The funding would come from a variety of sources, including a TIF district established in a deal between the city and Related Midwest, the company developing "The 78" site.
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Bond issues would also be required, as would capturing state sales taxes in the area of the project.
“At the end of the day, the benefits to the city and state are going to outweigh the cost,” he said. “This is not just a ballpark. This is a development of which the ballpark is the anchor.”
Reinsdorf also argued that the White Sox “cannot succeed” in their current location, saying the team can’t generate revenue to pay salaries of top-tier players, citing Shohei Ohtani’s $700 million contract as an example.
According to Forbes, the White Sox have a current value of $2.05 billion.
Reinsdorf also said the team would likely be sold after his death, and said the stadium project would be the only surefire way to ensure they would remain in Chicago.
More details can be found within the Crain’s story, which you can read here.
The White Sox released a statement after their meetings with lawmakers on Tuesday.
“We recognize discussions about The 78 serving as the future home of the Chicago White Sox have generated a lot of excitement over the potential of the larger project’s positive economic impact. We are mindful and respectful of the legislative process and wanted to travel to Springfield to meet personally with legislative leaders. We’re excited to share our vision, and we appreciate their time and hospitality.”
Another statement followed from a Related Midwest Spokesperson.
“We appreciated the time afforded to us by lawmakers in Springfield today. As we shared in the meetings, The 78 is a generational development and an investment in our hometown. It’s personal to us and we are excited about the prospect of delivering the city’s next great neighborhood, while making an historic economic investment that will bring over 10,000 construction jobs and 22,000 permanent jobs to our city and state. The long-term impact will be transformative – creating a new riverfront neighborhood anchored by a state-of-the-art ballpark for generations of fans to enjoy and help enhance Chicago’s place as a top destination.”
According to a recent, extensive report from Crain's Chicago Business, Reinsdorf is reportedly confident in his chances of winning over the state's approval for his complex financial plan to fulfill the goal of building an entirely new Sox stadium, in collaboration with real estate firm Related Midwest, along the Chicago River.
"The two [Reinsdorf and Related Midwest President Curt Bailey] are bullish they can win state support by arguing the stadium subsidies will bring along billions more in private investment, and the deal is structured in a way to not require new or increased taxes," the report states.
The onus of the plan is to create private investment funds from housing, bars, restaurants, a 4,000-spot parking garage and parks around the stadium from the state subsidy to create funding back to the state.
The White Sox hope to use a 2% hotel occupancy fee --- meant to pay ISFA’s [Illinois Sports Facilities Authority, a government entity used for constructing sports stadiums, including the White Sox' Guaranteed Rate Field] annual debt service for their bonds towards the White Sox' stadium and the Bears' 2003 renovations to Soldier Field --- "for decades beyond when all outstanding bonds are currently meant to be paid off in 2034."
The extensive, complex plan needs state approval, which will be the most difficult part of the plan. Illinois Gov. J.B. Pritzker, much like other state politicians, is hesitant to use public funding on stadiums, as it rarely creates positive dividends for the city/state.
Last week, Pritzker noted that he thought renderings of a potential new Sox stadium were beautiful, but said his administration will soon have official talks regarding the plans. The governor noted the state needs "to be careful with public dollars" while asking aloud what kind of benefit the stadium would bring to the state.
The IFSA would certainly need to co-sign the plan, too, as the adjustments to their bonds are drastic. The plan leaves Guaranteed Rate Field unaccounted for, which they are on the hook for paying.
If approved, it could be a massive turning point in Chicago's history.
Check back to this story for more updates
