• by Erik Sass  @eriksass1, December 10, 2008

The Tribune Co. has a lot on its plate right now, but apparently it's going to need a bigger one. Following Monday's announcement that it would file for bankruptcy protection, on Tuesday, the company's flagship Chicago Tribune was dragged into the sordid political scandal erupting around Illinois Gov. Rod Blagojevich. At presstime Tuesday evening, the company does not appear to have done anything wrong--but details in the case may fuel suspicion about Tribune owner Sam Zell.

Blagojevich's arrest at the behest of U.S. attorney Patrick Fitzgerald, while sensational, isn't particularly surprising; Illinois politics has a reputation for corruption. Blagojevich's predecessor George Ryan is currently in federal prison serving a six-and-a-half-year sentence for a corruption conviction, also obtained by Fitzgerald. In the latest case, Fitzgerald says Blagojevich was in the process of trying to sell president-elect Barack Obama's vacant Senate seat.

As the findings of federal eavesdropping came to light, Fitzgerald's office revealed that Blagojevich also tried to shake down the Chicago Tribune, whose Op-Ed page had been a vocal critic of Blagojevich, calling for his impeachment.

Blagojevich wanted the criticism to stop. To do this, according to the wiretap transcripts, he said he would block Zell's planned sale of Wrigley Field to the Illinois State Finance Authority unless Zell fired editors and writers who were criticizing him. (Zell is not named in the complaint, but referred to throughout as "Tribune Owner.") The Tribune Co. owns the Chicago Tribune, the Cubs and Wrigley Field.

None of the writers were actually fired, nor did their criticism cease. However, several details may call Zell's integrity into question.

First, while Zell may have decided against firing Blagojevich's Tribune critics, the governor and his chief of staff John Harris (who was also arrested Tuesday) seemed to think he would, based on conversations with one of Zell's aides detailed in Fitzgerald's complaint. Harris reported to Blagojevich that the unnamed aide assured him Zell "got the message and is very sensitive to the issue," adding that "certain corporate reorganizations and budget cuts are coming and, reading between the lines, he's going after that section."

Harris added that his contact did not openly acknowledge that "he interferes in the operation... but I got the clear feeling that he was, uh, very sensitive to our concerns." Later, he told Blagojevich the aide said Tribune would be "downsizing that division or changing personnel," and confirmed that Zell "understands" their demands.

Since the staffers were never fired, it's unclear what happened, although any number of scenarios can be imagined: Zell or his aide might have lied to placate Harris, or Harris might have lied to placate Blagojevich. The most damning possibility: Zell seriously considered firing the offending writers, but later changed his mind for some reason--perhaps deciding it was simply too flagrant a move.

Going forward in this economy, the Tribune is certain to make further staff cuts. They will be all the more complicated and controversial if employees believe they are politically motivated.

Second, Blagojevich's threat to withhold state support for the Cubs sale points to another area of possibly unethical dealings. According to a report from the Chicago Tribune, Zell approached Blagojevich this fall to get his support for a planned sale of Wrigley Field to the Illinois State Finance Authority that would yield the company $100 million to $150 million in tax savings.

However, the plan was opposed by Illinois lawmakers and Chicago Mayor Richard Daley, who argued that the state's money could be better spent elsewhere. Publicly, Blagojevich referred the matter to the ISFA; privately, Harris approached Tribune executives with the shakedown scheme, in which Blagojevich offered to circumvent opposition using the levers of corrupt political influence.

For example, he told the Cubs chairman he could use money earmarked for science and technology to fund the purchase without going through the legislature. Again, if Zell ever considered agreeing to this deal, it would imply that he was not only aware of the political corruption involved in the planned sale of Wrigley Field to the ISFA, but actively encouraged it.