Magic gets the Dodgers

[Biggtone23]

The Group led by Magic Johnson and Stan Kasten have reached an agreement to buy the Dodgers for $2 Billion.

http://www.mlbtraderumors.com/2012/0...ten-group.html

[doctor_gogol]

Good news!

But its weird that the parking lots weren't included. That is going to cause problems.

[jnakamura]

Holy crap....

It's real...the nightmare is finally over...

$2 Billion...wow...

...and Stan Kasten will no doubt become the new Dodgers President in charge of baseball operations....

WAHOO!!!!!!!!!

[UnderPressure]

Holy crap....

It's real...the nightmare is finally over...

$2 Billion...wow...

...and Stan Kasten will no doubt become the new Dodgers President in charge of baseball operations....

WAHOO!!!!!!!!!

Soon-Shiong and Cohen's combined net worth was so attractive but it's not really about net worth. Just glad McCourt is officially out.

[jnakamura]

Good news!

But its weird that the parking lots weren't included. That is going to cause problems.

The parking lots are included...sort of: According to the WSJ, the lots will be co-owned by a separate group including McCourt, but also including the new owners, and/or their affiliates.

The WSJ is reporting the sale price, including the lots as $2,150,000,000.00....shattering the old record of $1.1B paid for the Miami Dolphins.

$2B for the team and Dodger Stadium and $150M for the surrounding property.

-

[jnakamura]

Magic Johnson Wins Auction for Los Angeles Dodgers

http://online.wsj.com/article/SB1000...250633906.html

Basketball legend Magic Johnson led a group that won an auction for the Los Angeles Dodgers baseball team Tuesday night, marking the final chapter of in a soap-opera style saga for the legendary franchise, according to people with knowledge of the process.

With a bid of $2.15 billion, including the surrounding land, Mr. Johnson, controlling partner Mark Walter and partners Peter Guber, Stan Kasten, Bobby Patton and Todd Boehly beat out a group of some of the wealthiest businessmen in the country to land a team that is one of Major League Baseball's flagship franchises. The sales figure shatters the previous record sales price for a U.S. sports franchise, Steve Ross's purchase of the Miami Dolphins for $1.1 billion three years ago.

But buying the Dodgers now comes with a unique opportunity to launch a potentially lucrative regional sports network in the country's second-largest market, or sign a new local broadcast deal with the current broadcaster, News Corp.'s Fox unit, which has already offered the team a 17-year extension valued at nearly $3 billion. (News Corp. also owns The Wall Street Journal).

The sales process was led by Blackstone LP, the New York-based investment advisory firm, which held the auction Tuesday evening, just hours after Major League Baseball approved three finalists in the bidding, allowing current owner Frank McCourt to accept the highest and best offer.

Mr. McCourt filed the team for bankruptcy protection in June amid a deepening cash crisis and an ongoing feud with Major League Baseball Commissioner Bud Selig.

The deal allows Mr. McCourt to enter into a joint venture with the new owners on the land surrounding the stadium.

In a statement, the Los Angeles Dodgers stated, "This transaction underscores the Debtors' objective to maximize the value of their estate and to emerge from Chapter 11 under a successful Plan of Reorganization, under which all creditors are paid in full."

Mr. McCourt said the agreement "reflects both the strength and future potential of the Los Angeles Dodgers, and assures that the Dodgers will have new ownership with deep local roots, which bodes well for the Dodgers, its fans and the Los Angeles community."

In a statement, Earvin "Magic" Johnson said, "I am thrilled to be part of the historic Dodger franchise and intend to build on the fantastic foundation laid by Frank McCourt as we drive the Dodgers back to the front page of the sports section in our wonderful community of Los Angeles."

The other bidders who survived until the final round were a partnership that included hedge-fund billionaire Steven Cohen and Los Angeles biotech billionaire Patrick Soon-Shiong. The other bidder was Stan Kroenke, the billionaire developer and husband of a Walton family heir. Mr. Kroenke already owns the NFL's St. Louis Rams, the NBA's Denver Nuggets, the NHL's Colorado Avalanche, the Colorado Rapids of MLS and English soccer club Arsenal.

The deal is preliminary and still has to go through a complicated closing process and receive approval from the U.S. Bankruptcy Court in Delaware. However, Mr. McCourt is under pressure to complete the deal by April 30, one day before he owes his ex-wife a $131 million payment as part of their divorce settlement.

If the sale goes through it will bring to a close the McCourts' stormy eight-year stewardship of what had been one of MLB's model franchises.

A developer and owner of parking lots, Mr. McCourt bought the team in 2004 from News Corp. in a highly leveraged deal valued at about $420 million. A native of Boston, Mr. McCourt and his former wife quickly inserted themselves into the Los Angeles social scene and were a constant presence at Dodgers games in marked contrast to the team's previous owners and the O'Malleys, the low-key family that moved the Dodgers from Brooklyn after the 1957 season and built the team into a Southern California institution during the next 31 years.

However, during the divorce proceedings, it was revealed that the McCourts had siphoned more than $100 million from the team to finance their lavish lifestyle, including the purchase of several luxury homes. As the team's performance declined, fans soured on the McCourts, as did Mr. Selig.

The previous record sale for a baseball team was $845 million for the Chicago Cubs in 2009 by the Ricketts family, founders of TD Ameritrade Holding Corp.

In an interview earlier this month, former owner Peter O'Malley said watching the team become an object of ridicule had been painful.

"It's been tough," said Mr. O'Malley, who explored a bid to reacquire the team before dropping out. "But I am prepared to help the new owner in whatever he needs. I'm not looking for a job."

[GiambiJuice]

Wow! If the Dodgers are worth 2 billion, the Yankees must be worth, what, 5 billion?

[KCGHOST]

$2B!?!? That just seems crazy. These guys are going to be cash strapped just paying the interest on that kind of dough. They are eally betting on the come on this one.

[CandlestickBum]

$2B!?!? That just seems crazy. These guys are going to be cash strapped just paying the interest on that kind of dough. They are eally betting on the come on this one.

When is the last time an owner sold for lower than they paid? Think of this as an investment property, writ really large. Cash flow wise, it doesn't need to pay for itself to make a profit for the owner. That's gravy if it does.

[jnakamura]

Wow! If the Dodgers are worth 2 billion, the Yankees must be worth, what, 5 billion?

According to Forbes:

1. Yankees: $1.85B
2. Dodgers: $1.4B
3. Red Sox: $1B
4. Cubs: $879M
5. Phillies: $723M
6. Mets: $719M

http://www.forbes.com/mlb-valuations/

[jnakamura]

According to the Wall Street Journal, the deal is 100% CASH--no borrowing involved whatsoever.

[bluesky5]

According to the Wall Street Journal, the deal is 100% CASH--no borrowing involved whatsoever.

Damn......

[UnderPressure]

I have a feeling the new ownership will build a stadium in downtown.

[bluesky5]

I have a feeling the new ownership will build a stadium in downtown.

What is wrong with Dodger Stadium?

[UnderPressure]

What is wrong with Dodger Stadium?

Just like nothing was wrong with Yankee Stadium, but they built a new one anyway. Most likely, the new ownership will want a smaller stadium.