TPMMuckraker

Blago Thought Zell Promised To Go After Trib Ed Board

Is Sam Zell, the Tribune Company owner, implicated in the charging documents of Rod Blagojevich?

From Fitzgerald’s statement:

According to the affidavit, intercepted phone calls revealed that the Tribune Company, which owns the Chicago Tribune and the Chicago Cubs, has explored the possibility of obtaining assistance from the Illinois Finance Authority (IFA) relating to the Tribune Company’s efforts to sell the Cubs and the financing or sale of Wrigley Field. In a November 6 phone call, Harris explained to Blagojevich that the deal the Tribune Company was trying to get through the IFA was basically a tax mitigation scheme in which the IFA would own title to Wrigley Field and the Tribune would not have to pay capital gains tax, which Harris estimated would save the company approximately $100 million.

Intercepted calls allegedly show that Blagojevich directed Harris to inform Tribune Owner and an associate, identified as Tribune Financial Advisor, that state financial assistance would be withheld unless members of the Chicago Tribune’s editorial board were fired, primarily because Blagojevich viewed them as driving discussion of his possible impeachment. In a November 4 phone call, Blagojevich allegedly told Harris that he should say to Tribune Financial Advisor, Cubs Chairman and Tribune Owner, “our recommendation is fire all those [expletive] people, get ‘em the [expletive] out of there and get us some editorial support.”

On November 6, the day of a Tribune editorial critical of Blagojevich , Harris told Blagojevich that he told Tribune Financial Advisor the previous day that things “look like they could move ahead fine but, you know, there is a risk that all of this is going to get derailed by your own editorial page.” Harris also told Blagojevich that he was meeting with Tribune Financial Advisor on November 10.

In a November 11 intercepted call, Harris allegedly told Blagojevich that Tribune Financial Advisor talked to Tribune Owner and Tribune Owner “got the message and is very sensitive to the issue.” Harris told Blagojevich that according to Tribune Financial Advisor, there would be “certain corporate reorganizations and budget cuts coming and, reading between the lines, he’s going after that section.” Blagojevich allegedly responded. “Oh. That’s fantastic.” After further discussion, Blagojevich said, “Wow. Okay, keep our fingers crossed. You’re the man. Good job, John.”

In other words, the Tribune company wanted a deal that would save them millions. Harris, the governor’s aide, told them that if they removed the paper’s ed board, the governor would play ball. In response, Harris got the impression that Zell had received the message and would do what Blagojevich wanted. The governor was pleased.

Late Update: Here’s a statement from the Tribune Company, denying the charge.

Barack Obama, Rod Blagojevich, Sam Zell

Editor & Publisher

Josh Marshall

Managing Editor

David Kurtz

Senior Associate Editor

Paul Werdel

Associate Editor

Tom Lane

Assistant Editor

Igor Bobic

Reporters

Brian Beutler

Carl Franzen

Sahil Kapur

Eric Kleefeld

Nick Martin

Evan McMorris-Santoro

Jillian Rayfield

Ryan J. Reilly

Benjy Sarlin

News Writers

Kyle Leighton

David Taintor

Pema Levy

Video Editor

Michael Lester

Research Interns

Christopher Hohmuth

Tom Kludt

Publishing Intern

Christopher O’Driscoll

General Manager & General Counsel

Millet Israeli

VP, Ad Sales

Bruce Ellerstein

Waldo Tibbetts

Bob Edmunds

Manager, Ad Operations and Sales Support

Versha Sharma

Deputy Publisher

Callie Schweitzer

Director of Technology

Eric Buth

Designer/Developer

Ni Mu

Matthew Wozniak