Billionaires Mat and Justin Ishbia quietly bought a small stake in the Chicago White Sox in 2021, according to multiple people familiar with the details. MLB ownership bylaws would force the brothers to sell the previously unreported LP interest if they’re successful in their pursuit of the Minnesota Twins.
The Ishbias’ White Sox stake represents a mid-single-digit percentage of the team, said the people, who were granted anonymity because the details are private. The brothers invested as part of a special purpose vehicle (SPV) organized by two of owner Jerry Reinsdorf’s adult children, which bought out a number of existing LPs and increased the family’s ownership position in the MLB club, according to one of the people. The Ishbias’ role is passive, with no formal leadership positions or governance.
A representative for the Ishbias declined to comment. A rep for the White Sox declined to comment.
Justin Ishbia is planning to lead a bid to purchase the Twins, as Sportico reported last month. His offer would likely include Mat and other investors. The Twins are worth $1.7 billion, according to Sportico’s most recent valuations, ranking 19th in the 30-team league.
In October, the Pohlad family hired Allen & Company to explore a sale of the Twins after 40 years of family ownership, which ranks as the fourth-longest tenure behind the New York Yankees (1973), White Sox (1981) and Philadelphia Phillies (1981). The Pohlads believe a deal could be in place by Opening Day, The New York Times reported last week.
The bulk of the Ishbias’ money comes from Michigan-based United Wholesale Mortgage, now UWM Holdings, which was founded by their father. Mat, who now runs the company and is worth about $8.6 billion, owns a 71% stake in UWM; Justin, worth about $4.7 billion, owns 22%, according to Forbes.
They’ve long been donors to Michigan State University athletics, but they’ve built a sizable pro sports portfolio in just the last few years. It includes the NBA’s Phoenix Suns and the WNBA’s Phoenix Mercury, which they bought in 2023 at a $4 billion valuation, and a stake in MLS club Nashville SC. Mat is the primary governor of the NBA and WNBA franchise, with Justin serving as alternate governor. Justin is also alternate governor of the MLS team.
Though the family assets are spread out geographically, Justin has the deeper ties to Chicago. He is founder and managing partner of Shore Capital Partners, a private equity firm based in downtown Chicago with $11.5 billion under management.
The White Sox just set a new mark for the most losses in a season in MLB’s modern era with a record of 41-121. They are led by 88-year-old Jerry Reinsdorf, who owns an estimated 20-25% of the club, but has controlled the team since 1981 via ChiSox Corp., a general partner corporate entity, according to Crain’s. There’s also Chicago White Sox Ltd., comprised of many minority investors who have no say in governance.
The SPV, led by Michael and Jonathan Reinsdorf, was aimed at giving the family a bigger stake in the team by buying out some members of Chicago White Sox Ltd. It’s unclear how many new LPs were involved in the SPV beyond the Ishbias. Crain’s reported at the time that Jerry was not involved in the venture, citing a letter distributed to the MLB team’s investors.
It remains to be seen whether the SPV’s involvement makes it more likely that the Reinsdorfs keep the team once Jerry is no longer involved. Should it sell, that transaction would likely help the sons reap a profit from the minority stakes bought in 2021. In February, Jerry told Crain’s that Michael “will have an obligation to do what’s best” for the other White Sox investors after he passes away. “That likely means putting the team up for sale,” Reinsdorf said. “The team will be worth more out of town.”
(This story has been updated with the current number for Shore Capital Partners’ assets under management, as provided by a representative of the fund. A previous version of this story used the AUM listed on the fund’s website.)