Rod Blagojevich

Report Identifies Zell Financial Adviser

Zachary Roth | December 12, 2008, 4:53PM

Since the complaint against Rod Blagojevich was made public Tuesday, we've been wondering about the identity of the "Tribune Financial Adviser" who is said to have met with John Harris, the governor's then chief of staff, about the possibility of firing Tribune editorial writers who had been critical of Blagojevich.

Now the Tribune itself is reporting that it's Nils Larsen, a Tribune exec and managing director of the Equity Group, a private investment group started by Tribune CEO Sam Zell. Larsen has been interviewed by the FBI, adds the paper.

Larsen had been at the top of our list of suspects. The complaint says that the person is someone mentioned in media reports as a top financial adviser to Zell, who played a major role in Zell's purchase of the Tribune Company.

And Larsen appears to fit the bill. Consider this paragraph from a profile in Chicago Business last year:

Mr. Larsen, 37, is a managing director at Equity Group Investments LLC, Chicago billionaire Sam Zell's private investment firm -- and the company that will lead Tribune Co. when it goes private later this year. He's been Mr. Zell's point man in arranging and negotiating $11.2 billion in financing for the deal, scoping the future of Tribune's 23 television stations and running the sale of the Chicago Cubs.

We called Larsen yesterday to ask if he was the financial adviser named in the charging documents, but he didn't respond. He didn't respond to the Tribune either, and neither did Zell.

The paper adds that the feds have also issued a subpoena to the Tribune Company (probably wasn't hard for them to get the scoop!), seeking memos that might shed light on the governor's apparent efforts to get the editorial writers fired.

Barack Obama

Blago Thought Zell Promised To Go After Trib Ed Board

Zachary Roth | December 9, 2008, 11:16AM

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.