CHICAGO – Some
are calling it the end of
a dynasty – the Pritzker
family, owners of a $15
billion real estate
empire that includes
the Hyatt Hotel chain,
have ultimately agreed
to liquefy and distribute
assets to 11 family
members over the next
decade. Family
disagreements over
money and business
have provoked four
generations of
Pritzkers to go their
separate ways.
“Since Jay's death in
1999, the family has all
worked together on a
common strategy for
generational transition.
During this process,
we jointly considered
the divergent interests
and points of view of
the various family
members. Through
this process, we were
able to reach common
ground and goals for
the ongoing conduct of
our family's business
interests,” said a
statement issued by
the Pritzkers last
Tuesday.
Four years before Jay
Pritzker’s death in
1999, he issued a
memorandum to 11
members of the
Pritzker family,
appointing three of
them to head the
family’s businesses,
and clarifying that the
Pritzker fortune is to be
shared among the rest
of the family.
Last year, quarreling
between family
members prompted
the termination of that
agreement, and led to
a secretly devised new
plan that would
breakup the Pritzker
Empire and disperse
funds to each of the 11
members.
However, a young
cousin has put a snag
in the plan by suing her
father, Robert – Jay
Pritzker’s brother – and
eight other Pritzkers for
the return of $1 billion
to her trusts and $5
billion in punitive
damages.
Liesel Pritzker – an
18-year-old-actress
who starred in “Air
Force One” with
Harrison Ford –
contends that her trust
funds were emptied to
benefit the other
members of that
generation, who are
decades older. The
lawsuit maintains that
Robert Pritzker moved
assets from his
children’s trusts to their
cousins’ and to the
family’s philanthropy,
the Pritzker Foundation,
the New York Times
reported.
In the statement
issued by the
historically private
Pritzker family, they
express desire to settle
the dispute amicably.
“As a family, we have
traditionally shied away
from publicity in order
to attempt to lead our
lives in private.
However, now that
Liesel Pritzker has
taken action in a public
forum, we are issuing
this joint statement in
order to balance the
media's interest in
understanding more
about our generation
with our own interest in
preserving our ability to
live as private
individual,” said the
statement. “We regret
that Liesel, who
continues to be a
beneficiary of
significant wealth and
advantage from the
family, has chosen to
sue her father and
other members of her
family. While we do not
agree with her
assertions, Liesel is a
member of our family
and we therefore
remain united in our
hope for a fair
resolution for all
involved.”
As for the Pritzker
Empire, which includes
more than 60
companies in the $6.4
billion Marmon Group
and 2,500 domestic
and offshore trusts, the
cousins have agreed to
liquefy assets during
the next 10 years, and
to each take about $35
million from the Pritzker
Foundation to set up
their own charities, in
addition to receiving
$30 million as part of
the agreement,
reported the New
York Times.
Despite rumors that
the family had already
commissioned a plan
to take Hyatt public,
Hyatt Chairman and
CEO, Thomas Pritzker
denied the rumors
saying that the
company, which owns
40 hotels and
manages 207 more,
presently, would
remain private.
“Can't foreclose our
options in the future,
but I can say we have
no plans to take Hyatt
public in the next
several years,” said
Thomas Pritzker,
Chairman and CEO
Hyatt Corp., Regarding
Hyatt going public.
US Franchise
Systems, which was
purchased by the
Pritzkers in 2000, also
declined to comment.
What do you
think about this issue?
Will the Pritzker’s be
able to keep this
unfolding drama
behind closed doors?
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