Per Newsday:

Sam Zell, currently $12.8 billion in debt with the Tribune Co., is reportedly structuring a possible sale of Newsday in a way that could save him hundreds of millions of dollars in capital gains taxes.

The idea of a non-cash asset swap has been swirling about talks with suitors for Newsday, including News Corp. chief and New York Post owner Rupert Murdoch and New York Daily News owner Mort Zuckerman.

Any deal could potentially save the media mogul between $175 million and $245 million in capital gains tax. Or as Zell calls it, pussy money.