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View Full Version : LA Dodgers sold for 2 Billion Dollars.


24champ
03-27-2012, 10:15 PM
NEW YORK (AP)—A group that includes former Lakers star Magic Johnson and longtime baseball executive Stan Kasten agreed Tuesday night to buy the Los Angeles Dodgers from Frank McCourt for a record $2 billion.

The price would shatter the mark for a North American sports franchise, topping the $1.1 billion Stephen Ross paid for the NFL’s Miami Dolphins in 2009.

Mark Walter, chief executive officer of the financial services firm Guggenheim Partners, would become the controlling owner.

The deal, revealed about five hours after Major League Baseball owners approved three finalists for an intended auction, is one of several steps toward a sale of the team by the end of April. It is subject to approval in federal bankruptcy court.

As part of the agreement, the Dodgers said McCourt and “certain affiliates of the purchasers” would acquire the land surrounding Dodger Stadium, including its parking lots, for $150 million.

http://sports.yahoo.com/mlb/news;_ylt=AoniGw9q6Iulg0d9TVafS0Y5nYcB?slug=ap-dodgerssale


Bye bye Franky!

http://media.tumblr.com/tumblr_m0f55scWAv1qmwb38.gif

strafen
03-27-2012, 10:25 PM
It's finally been done, wow!

Shiloh_C
03-27-2012, 10:58 PM
Hmm...wow!

Lestat
03-27-2012, 11:05 PM
lol and McCourt will net about 10 mil for himself once he pays off all his debts.
even with inflation there is no franchise worth that much money. i thought Cuban was being a bit disingenuous when he bowed out and called it a media rights deal but damn he was right.

extralife
03-27-2012, 11:10 PM
there's no way in hell the Dodgers are worth as much as Man U.

Rohirrim
03-28-2012, 08:16 AM
Great to get rid of McCourt. I just hope the new owners have enough money left over to put a good team on the field. Rebuild the farm system! Remember Fernando?

Lestat
03-28-2012, 08:19 AM
yeah but we have to remember that 594 mil of this purchase price is debt(which how that's possible for a sports franchise is nuts). so the basic value was 1.65 billion which is still an insane amount of money but they'll end up potentially building their own regional sports network like the Yanks and Sox after 2014 and could rival what the Lakers got for just their media broadcast rights.

despite the price paid the Dodgers are a potential golden goose. once the debt is cleared you can build a nice little franchise.
the main issue now for successful teams is going to be the cap on the draft and international free agent spending.
this year IFA is 2.9 for each team, next year the cap is a sliding scale based upon finish, worst getting to spend 2.9, best getting to spend 1.6.

for the Dodgers,Rangers,Yanks,Sox & most recently the A's that means cutting out a chunk of their ammo to get players sign.

Drunken.Broncoholic
03-28-2012, 08:20 AM
2 billion dollars? That's cartoonish

Meck77
03-28-2012, 08:24 AM
I'd be curious to know much of that was cash and wow the opportunity cost of that cash. You could probably buy all of downtown Denver for $2 Billion.

I don't know the layout of the stadium but they must have serious plans for the 250 acres around it to try and even justify 2 billion for the team.

I suspect a lot of that parking lot will go vertical and become parking garages. Sadly that is what is going to happen around MileHigh.

Gcver2ver3
03-28-2012, 08:24 AM
2 billion for the LA Dodgers?...

thats the signal that the market is finally primed for me to put my magic beans up for sale on Craigs List...

bendog
03-28-2012, 08:28 AM
couldn't he buy the rox instead.

Lestat
03-28-2012, 08:28 AM
they sold a good chunk of the land around Dodger Stadium to McCourt & others for 150 mil in the deal so any income from that would go to McCourt and his companies.

i doubt much of it was cash though. too many assets would have to be liquidated, too many taxes to be paid and you're assuming almost 600 mil in debt in the deal that has to be restructured and paid off.
I'd be curious to know much of that was cash and wow the opportunity cost of that cash. You could probably buy all of downtown Denver for $2 Billion.

I don't know the layout of the stadium but they must have serious plans for the 250 acres around it to try and even justify 2 billion for the team. wow

Meck77
03-28-2012, 08:35 AM
And the affiliates of the owners lestat. Yeah this is a baseball deal but at that price I'm sure thee are massive real estate development plans.

Chris
03-28-2012, 08:38 AM
Bring them back to Brooklyn where they belong.

Lestat
03-28-2012, 08:38 AM
oh i know, it's gonna be a massive deal sooner or later. this wasn't just about the dodgers, the overall deal as a whole is structured for serious future profit.
And the affiliates of the owners lestat. Yeah this is a baseball deal but at that price I'm sure thee are massive real estate development plans.

WolfpackGuy
03-28-2012, 08:38 AM
Probably setting up to do what they've done in New England and are in the process of doing in Philadelphia.

Shopping, restaurants, and hotels around the stadium.

$2 billion seems crazy though.

baja
03-28-2012, 08:39 AM
Damn that's a lot of Pesos

broncocalijohn
03-28-2012, 08:52 AM
there's no way in hell the Dodgers are worth as much as Man U.

Dodgers just got sold based on an ego boost for Magic Johnson and the other investors! $2 billion (minus $150 million) and doesn't include the parking lot? McCourt back to his parking lot business. Watch everything surrounding the stadium and everything inside go up in value or just cost, we shall see. While getting McCourt out of there is what Dodgers' fans wanted, the price tag might bring prices up to cut out the common fan. Good luck with that Champ.

Probably setting up to do what they've done in New England and are in the process of doing in Philadelphia.

Shopping, restaurants, and hotels around the stadium.

$2 billion seems crazy though.

The stadium isnt in a desired area and while the view is outstanding, it is up on a bluff and parking is used for the whole thing. I don't know how those shops will feel the other 280 days of the year.

Lestat
03-28-2012, 08:52 AM
true but it's amazing for the local economy though and makes it more of a tourist attraction. the tax payers will complain about it but normally with deals like this you're talking adding 1,500+ jobs to the area and even more money flowing into the local economy and allowing for upgrades to areas around it.
Probably setting up to do what they've done in New England and are in the process of doing in Philadelphia.

Shopping, restaurants, and hotels around the stadium.

$2 billion seems crazy though.

Meck77
03-28-2012, 09:03 AM
Rest assured the "affiliates" are local politicians and insiders who will use tax increment financing to hose the tax payers and split tens of millions among themselves. That is how big deals like this get done. They often use the word private/public partnership to confuse the general population/voters.

It will be interesting to follow this story and bump this thread in about 5 years when the true nature of this deal is exposed and who made the money. By then the politicians who were involved will have jumped to the private sector and be immune from legal action.

BroncoBen
03-28-2012, 09:09 AM
I like the idea of Magic buying into the Dodgers.. now will it turn out to be good ownership.. time will tell.

Lestat
03-28-2012, 09:23 AM
Ben i can't put my finger on it but for some reason i can't stop staring at your avatar.

back to the thread though.
even though Dodger stadium is in a "rough" area, with enough building up of the area around it you can push some of that out a bit further from the stadium. granted crime will still happen but it can be pushed out of that 250 acre area for the most part.

Chris
03-28-2012, 09:27 AM
Ben i can't put my finger on it but for some reason i can't stop staring at your avatar.

back to the thread though.
even though Dodger stadium is in a "rough" area, with enough building up of the area around it you can push some of that out a bit further from the stadium. granted crime will still happen but it can be pushed out of that 250 acre area for the most part.

I know. And he doesn't tell me where he gets them. It's unfair. He doesn't even talk about it and it's like BLAM tits.

DarkHorse30
03-28-2012, 09:45 AM
Why overpay for the dodgers?.....and then give back McCourt parking? Magic and his group seem like dunces.

24champ
03-28-2012, 09:49 AM
I'd be curious to know much of that was cash and wow the opportunity cost of that cash. You could probably buy all of downtown Denver for $2 Billion.

I don't know the layout of the stadium but they must have serious plans for the 250 acres around it to try and even justify 2 billion for the team.

I suspect a lot of that parking lot will go vertical and become parking garages. Sadly that is what is going to happen around MileHigh.

100 percent cash. I am floored myself but its in the Wall Street Journal...

The person said the other offers, which were perceived as opening bids, were in the range of $1.5 billion, some 25% less than the Johnson-Walter bid. As a result, the other bidders were never given a chance to match, and the deal was wrapped up by Tuesday evening.

The bid was described as a “100% cash offer.” Mr. Walter is making a significant personal contribution to the purchase price, with Guggenheim Partners, of which he is chief executive, playing a substantial role in financial contribution.

http://online.wsj.com/article/SB10001424052702303404704577308483250633906.html?m od=WSJ_hp_LEFTTopStories



Secondly, about the parking lots and land that surround the Stadium, McCourt won't control the parking tickets on gameday and Magic Johnson can veto any plans that McCourt has as far as building developments. This information is from Bill Shaikin of the LA Times. Basically Magic has controlling interest in the parking lots and McCourt has minority control over it.

Lestat
03-28-2012, 09:50 AM
part of the known issue in selling the dodgers was that McCourt refused to sell the team without securing the parking lots and land around the stadium. that's why 3-4 guys were bounced from the process because they wanted it all and McCourt completely gone.

MLB can't legislate that part of the sale. he simply has to sell the team and the stadium.

24champ
03-28-2012, 09:52 AM
Why overpay for the dodgers?.....and then give back McCourt parking? Magic and his group seem like dunces.

The parking lot is a joint venture, which the group paid 150 million to be a part of...and McCourt has minority control over it. He doesn't run the parking lots on game day, Magic does.

Lestat
03-28-2012, 09:54 AM
First, Magic is a ****ing business marvel(stunned he's not a majority NBA owner). Second, 100% cash? where the hell is the money coming from? that's a crap load of liquidating assets.
it's smart because then you only incur personal debt in terms of losing a chunk of capitol but man that's a lot of money.
normally loans,bonds and corporation taking on debt is the majority and very little is pure cash. this is definitely a deal for the future.
100 percent cash. I am floored myself but its in the Wall Street Journal...



http://online.wsj.com/article/SB10001424052702303404704577308483250633906.html?m od=WSJ_hp_LEFTTopStories



Secondly, about the parking lots and land that surround the Stadium, McCourt won't control the parking tickets on gameday and Magic Johnson can veto any plans that McCourt has as far as building developments. This information is from Bill Shaikin of the LA Times. Basically Magic has controlling interest in the parking lots and McCourt has minority control over it.

DomCasual
03-28-2012, 09:57 AM
As a Rockies fan, it's sad to see a good guy like McCourt go.

extralife
03-28-2012, 09:59 AM
Second, 100% cash?

<embed src="http://www.youtube.com/v/07G23zMGa4g?version=3&amp;hl=en_US" type="application/x-shockwave-flash" width="420" height="315" allowscriptaccess="always" allowfullscreen="true"></embed>

24champ
03-28-2012, 10:01 AM
First, Magic is a ****ing business marvel(stunned he's not a majority NBA owner). Second, 100% cash? where the hell is the money coming from? that's a crap load of liquidating assets.
it's smart because then you only incur personal debt in terms of losing a chunk of capitol but man that's a lot of money.
normally loans,bonds and corporation taking on debt is the majority and very little is pure cash. this is definitely a deal for the future.

The Guggenheim group is a very rich group, and all of the members of the ownership group aren't using this franchise to be their primary source of income. Which Frank McFraud did.

campocorto
03-28-2012, 10:05 AM
From Maury Brown who writes a blog called "Biz of Baseball"

Dodgers = $2.15B = pending media rights. Not every sale will wind up like this. Auction, TV deal drove it so high.

http://twitter.com/#!/BizballMaury/status/184872064962928641

Lestat
03-28-2012, 10:10 AM
i know they're rich but this is normally not heard of. the potential media network had to play heavily into this. most of the time you make the acquisition with as little cash as possible. but the 2014 media rights bidding war and potential Dodgers network forming would be a huge windfall to make it more than worth it.
The Guggenheim group is a very rich group, and all of the members of the ownership group aren't using this franchise to be their primary source of income. Which Frank McFraud did.

Lestat
03-28-2012, 10:12 AM
here you go
<iframe width="480" height="360" src="http://www.youtube.com/embed/92gjubnQdkU" frameborder="0" allowfullscreen></iframe>
As a Rockies fan, it's sad to see a good guy like McCourt go.

Meck77
03-28-2012, 10:43 AM
Second, 100% cash? where the hell is the money coming from? that's a crap load of liquidating assets.

Incredible if that is the case. I suspect other players are going to be taking profits since the DOW has stalled out around 13,000.

13,000 built on not much more than federal reserve quantitative easing/bailout money. These guys are playing with digital bucks anyway. Might as well buy something tangible, cut a few deals, add in a figure head like Magic Johnson to make it all seem legit. $2,000,000,000 for a baseball team in the ghetto*.

*Ok that's a shot at you cali folks. I have no idea if the stadium is in the ghetto. My dislike for all things california is well documented here at the mane. ;D

Lestat
03-28-2012, 10:46 AM
yeah it's in the ghetto essentially. that's why people were so pissed off about the lack of security at Dodger games.
Incredible if that is the case. I suspect other players are going to be taking profits since the DOW has stalled out around 13,000.

13,000 built on not much more than federal reserve quantitative easing/bailout money. These guys are playing with digital bucks anyway. Might as well buy something tangible, cut a few deals, add in a figure head like Magic Johnson to make it all seem legit. $2,000,000,000 for a baseball team in the ghetto*.

*Ok that's a shot at you cali folks. I have no idea if the stadium is in the ghetto. My dislike for all things california is well documented here at the mane. ;D

Meck77
03-28-2012, 11:07 AM
yeah it's in the ghetto essentially. that's why people were so pissed off about the lack of security at Dodger games.

Oh that's right I remember now. People get shanked over there.

Maybe Obama is going to cut Magic a check to build a supermax prison around the stadium. I'd imagine 250 acre tracts of land are a bit hard to come by around there.

Rohirrim
03-28-2012, 11:55 AM
A billion ain't what it used to be.

24champ
03-28-2012, 12:48 PM
A billion ain't what it used to be.

I am hearing that the new TV deal will possibly be north of 4 billion for 20 years. Time Warner and Fox, two TV giants, will be bidding for the TV rights to the Dodgers.


The next TV contract for the Dodgers, whose current deal with Fox expires after the 2013 season, is expected to go for unprecedented dollars because of the team's fundamental importance in the Los Angeles sports television landscape -- an importance only enhanced by the 180-degree turnabout of having the beloved Johnson as co-owner in place of McCourt, who with his ex-wife Jamie came to be reviled by fans for their management of the team's finances.

Fox will be intent on retaining the Dodgers after losing rights to Johnson's old team, the Los Angeles Lakers, to Time Warner Cable, which is launching English- and Spanish-language networks this fall dedicated to the perennial NBA powerhouse. Should the Dodgers leave as well, Fox would have to seriously consider shuttering one of its two local sports cable channels and the hundreds of millions in revenue that come with it. (News Corp.-owned Fox bought the Dodgers in 1998 essentially to launch that second channel.)

On the other hand, Time Warner Cable will be concerned about maintaining audience for its new channels during the summertime months without NBA action. Nabbing the Dodger rights would have the twofold benefit of boosting their own efforts while imperiling Fox's, while Fox can say the same in reverse.

With an exclusive negotiating window through Nov. 30 on a contract extension, as well as certain rights to match competing offers thereafter, Fox will have the upper hand in the battle for the Dodgers, but the ultimate control of the bidding will go to Guggenheim's Walter, Johnson, Guber and partners Stan Kasten, Bobby Patton and Todd Boehly. It will be up to them to decide whether to make a quick deal with Fox for financial certainty, or play out the bidding process to the fullest extent possible.

http://www.variety.com/article/VR1118052013

BroncoLifer
03-28-2012, 03:59 PM
As a Rockies fan, it's sad to see a good guy like McCourt go.

I felt the same way when Al Davis died.

maven
03-28-2012, 08:06 PM
Who buys a team for $2 billion dollars, and do not own the parking/land around the stadium. Talk about stupid.

baja
03-28-2012, 08:42 PM
Who buys a team for $2 billion dollars, and do not own the parking/land around the stadium. Talk about stupid.

Stupid people do not have 2 billion dollars in liquid assets

Lestat
03-28-2012, 08:45 PM
Stupid people do not have 2 billion dollars in liquid assets
that's true, assuming you never give your wife a reason to divorce you when you're that wealthy.
if you do, then you would in fact be a stupid person with 2 billion dollars in liquid assets(or rather a little under a billion after divorce settlement and alimony)

maven
03-28-2012, 09:05 PM
Stupid people do not have 2 billion dollars in liquid assets

The price tag, not owning the parking and land around the stadium. Makes sense why some left the table when the priced reached this high. Mccourt will still be involved with the Dodgers, and expect prices to go up at Dodgers stadium. Someone will have to pay, and the fans will be the one. Because that's a terrible price to pay.

baja
03-28-2012, 09:20 PM
The price tag, not owning the parking and land around the stadium. Makes sense why some left the table when the priced reached this high. Mccourt will still be involved with the Dodgers, and expect prices to go up at Dodgers stadium. Someone will have to pay, and the fans will be the one. Because that's a terrible price to pay.

Tue it is an astonishing amount of money for the rights to a baseball team, which is how most of us relate to the deal but what we do not know are the nuances of the deal, TV etc. It might be a hell of a deal for the buyers we just are not privy to the information necessary to apprize that.

maven
03-28-2012, 09:24 PM
Tue it is an astonishing amount of money for the rights to a baseball team, which is how most of us relate to the deal but what we do not know are the nuances of the deal, TV etc. It might be a hell of a deal for the buyers we just are not privy to the information necessary to apprize that.

It is just digital money anyway. So to the new owners of the Dodgers I see your side, so why not.

baja
03-28-2012, 09:32 PM
What it really says is how much the dollar has been devalued.

$2,000,000,000 - I mean really!

24champ
03-28-2012, 10:07 PM
Who buys a team for $2 billion dollars, and do not own the parking/land around the stadium. Talk about stupid.

They essentially DO own the land surrounding the Stadium. McCourt is in a joint venture with the new owners and has no say about parking prices, and can't develop without the new owners consent.

Essentially McCourt gets a percent of the profits and that's it.

24champ
03-28-2012, 10:12 PM
The price tag, not owning the parking and land around the stadium. Makes sense why some left the table when the priced reached this high. Mccourt will still be involved with the Dodgers, and expect prices to go up at Dodgers stadium. Someone will have to pay, and the fans will be the one. Because that's a terrible price to pay.

McCourt has no control over prices. Get your facts straight.