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Old 03-27-2012, 10:15 PM   #1
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Default LA Dodgers sold for 2 Billion Dollars.

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;_yl...ap-dodgerssale


Bye bye Franky!

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Old 03-27-2012, 10:25 PM   #2
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It's finally been done, wow!
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Old 03-27-2012, 10:58 PM   #3
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Hmm...wow!
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Old 03-27-2012, 11:05 PM   #4
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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.
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Old 03-27-2012, 11:10 PM   #5
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there's no way in hell the Dodgers are worth as much as Man U.
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Old 03-28-2012, 08:16 AM   #6
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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?
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Old 03-28-2012, 08:19 AM   #7
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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.

Last edited by Lestat; 03-28-2012 at 08:23 AM..
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Old 03-28-2012, 08:20 AM   #8
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2 billion dollars? That's cartoonish
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Old 03-28-2012, 08:24 AM   #9
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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.

Last edited by Meck77; 03-28-2012 at 08:29 AM..
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Old 03-28-2012, 08:24 AM   #10
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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...
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Old 03-28-2012, 08:28 AM   #11
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couldn't he buy the rox instead.
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Old 03-28-2012, 08:28 AM   #12
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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.
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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
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Old 03-28-2012, 08:35 AM   #13
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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.
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Old 03-28-2012, 08:38 AM   #14
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Bring them back to Brooklyn where they belong.
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Old 03-28-2012, 08:38 AM   #15
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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.
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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.
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Old 03-28-2012, 08:38 AM   #16
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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.
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Old 03-28-2012, 08:39 AM   #17
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Damn that's a lot of Pesos
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Old 03-28-2012, 08:52 AM   #18
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Quote:
Originally Posted by extralife View Post
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.

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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.

Last edited by broncocalijohn; 03-28-2012 at 09:20 AM..
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Old 03-28-2012, 08:52 AM   #19
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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.
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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.
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Old 03-28-2012, 09:03 AM   #20
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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.
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Old 03-28-2012, 09:09 AM   #21
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I like the idea of Magic buying into the Dodgers.. now will it turn out to be good ownership.. time will tell.
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Old 03-28-2012, 09:23 AM   #22
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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.
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Old 03-28-2012, 09:27 AM   #23
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Quote:
Originally Posted by Lestat View Post
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 boobies.
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Old 03-28-2012, 09:45 AM   #24
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Why overpay for the dodgers?.....and then give back McCourt parking? Magic and his group seem like dunces.
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Old 03-28-2012, 09:49 AM   #25
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Quote:
Originally Posted by Meck77 View Post
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...

Quote:
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/SB1000...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.
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