March 28, 201214 yr hot d*mn, I need to buy a major league franchise on credit and run it into the ground. That's one hell of a quick way to become a billionaire. One Los Angeles institution is buying another. A group that includes former Los Angeles 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 sports franchise. Stephen Ross paid $1.1 billion for the NFL's Miami Dolphins in 2009, and in England, Malcolm Glazer and his family took over the Manchester United soccer club in 2005 in a deal then valued at $1.47 billion. 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. "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," Johnson said in a statement.
March 28, 201214 yr The $2 billion dollar price tag for the Dodgers is the largest sale price paid by any current MLB owner. Here's that list: Team Year Price Dodgers '12 $2B Cubs '09 $845M Red Sox '02 $700M Astros '11 $615M Rangers '10 $561M
March 28, 201214 yr QUOTE (southsider2k5 @ Mar 28, 2012 -> 09:14 AM) So what does that make the Yankees worth? $3 billion? Gotta be more than that if you include the YES network. I think that network alone has more revenue than the Dodgers.
March 28, 201214 yr Author Jeff Passan @JeffPassan Total guesstimate franchise values: Yankees, $3B. Red Sox, $1.8B. Cubs, $1.5B. Mets, $1.5B. Angels, $1.2B. Cheapest team now >$500M.
March 28, 201214 yr QUOTE (southsider2k5 @ Mar 28, 2012 -> 09:34 AM) Jeff Passan @JeffPassan Total guesstimate franchise values: Yankees, $3B. Red Sox, $1.8B. Cubs, $1.5B. Mets, $1.5B. Angels, $1.2B. Cheapest team now >$500M. So if that's right, after holding the team for 3 years, the Ricketts could cash out with a value gain of $600 million?
March 28, 201214 yr Author @sportspickle: "I paid $2 billion for a baseball team, and all I got is a lineup with Mark Ellis, Juan Rivera, Juan Uribe and AJ Ellis."
March 28, 201214 yr Author The kicker is McCourt got to keep half of the parking lots. http://espn.go.com/los-angeles/mlb/story/_...ohnson-group-2b
March 28, 201214 yr Author Fun with numbers 'Duk @KevinKaduk If Frank McCourt had spent $435 million on Apple stock the day he bought the Dodgers, he'd be worth $12 billion today.
March 28, 201214 yr QUOTE (southsider2k5 @ Mar 28, 2012 -> 09:13 AM) Fun with numbers 'Duk @KevinKaduk If Frank McCourt had spent $435 million on Apple stock the day he bought the Dodgers, he'd be worth $12 billion today. Matt Speigel spent half his show yesterday talking about how rich he would be if he had spent his $1,000 of Bat Mitzvah money on Apple stock.
March 28, 201214 yr QUOTE (LittleHurt05 @ Mar 28, 2012 -> 06:22 AM) Why are the Dodgers worth double what the Cubs/Boston are? Land. LA is the 2nd largest market as well so the TV contracts and potential revenue from that perspective are massive. And did I mention land and the fact that an owner can probably pull some strings to get the NFL and potentially a new stadium into chavez ravine.
March 29, 201214 yr http://www.forbes.com/sites/prishe/2012/03.../?partner=yahoo On all the positives financially for the fans and the Dodgers' franchise. One of the points is that all MLB team values theoretically could be inflated another 25-50% by this massive deal alone...as well as the huge bump it will have in terms of generating another $3-5 billion from the soon-to-be-negotiated cable/RSN package. For another example...David Glass will go from spending $96 million on the Royals in 2000 to making $400-500 million in profit on the sale, not to mention the $93 million in profits the franchise has turned since 2006. What recession? JR's cheap, haha. How dare he cut payroll!!! Edited March 29, 201214 yr by caulfield12
March 29, 201214 yr Author QUOTE (caulfield12 @ Mar 29, 2012 -> 12:16 AM) http://www.forbes.com/sites/prishe/2012/03.../?partner=yahoo On all the positives financially for the fans and the Dodgers' franchise. One of the points is that all MLB team values theoretically could be inflated another 25-50% by this massive deal alone...as well as the huge bump it will have in terms of generating another $3-5 billion from the soon-to-be-negotiated cable/RSN package. For another example...David Glass will go from spending $96 million on the Royals in 2000 to making $400-500 million in profit on the sale, not to mention the $93 million in profits the franchise has turned since 2006. What recession? JR's cheap, haha. How dare he cut payroll!!! Cash is not the same as franchise value.
March 29, 201214 yr QUOTE (southsider2k5 @ Mar 29, 2012 -> 08:47 AM) Cash is not the same as franchise value. What this definitely does do is minimize the impact of any debt that the team is currently holding, and give a team much more leeway to go into debt if they think it can improve revenues. The Sox have one of the smallest debt loads in the league. If they lose money in some season, the assets balanced against it are even greater.
March 30, 201214 yr QUOTE (southsider2k5 @ Mar 28, 2012 -> 09:44 AM) The kicker is McCourt got to keep half of the parking lots. http://espn.go.com/los-angeles/mlb/story/_...ohnson-group-2b McCourt gets to keep "ownership" of the lots but he doesn't get any of the lot gate revenues. He gets an ownership stake in the parking which can be sold, but which will only have value if the land is redeveloped. If the Dodgers stay at Chavez Ravine forever, his shares are worthless. If they redevelop that site into housing and move elsewhere, his shares are worth a fortune.
March 30, 201214 yr Author QUOTE (Balta1701 @ Mar 30, 2012 -> 10:40 AM) McCourt gets to keep "ownership" of the lots but he doesn't get any of the lot gate revenues. He gets an ownership stake in the parking which can be sold, but which will only have value if the land is redeveloped. If the Dodgers stay at Chavez Ravine forever, his shares are worthless. If they redevelop that site into housing and move elsewhere, his shares are worth a fortune. Someone mentioned a possible building site for an NFL team.
March 30, 201214 yr Either use the half of the lot McCourt doesn't own or find a new site, but the Dodgers need a new stadium badly. Dodger Stadium is a freaking dump in an iffy part of LA that families are afraid to go to now since the incident last season. New ownership combined with a nice new modern stadium would do wonders for that franchise...
March 30, 201214 yr @JerodMorris: BREAKING: A group headed by Magic Johnson has purchased the $640 million Mega Millions jackpot for $2.1 billion
March 30, 201214 yr QUOTE (Cali @ Mar 30, 2012 -> 01:39 PM) Either use the half of the lot McCourt doesn't own or find a new site, but the Dodgers need a new stadium badly. Dodger Stadium is a freaking dump in an iffy part of LA that families are afraid to go to now since the incident last season. New ownership combined with a nice new modern stadium would do wonders for that franchise... That's an "Iffy" part of L.A. close to downtown with great freeway access. The money they could get for building high-end housing in that area would be ridiculous.
May 1, 201213 yr Author Bill Shaikin @BillShaikin Source: #Dodgers sale has closed. McCourt era has ended.
May 5, 201213 yr QUOTE (southsider2k5 @ May 1, 2012 -> 01:28 PM) Bill Shaikin @BillShaikin Source: #Dodgers sale has closed. McCourt era has ended. The shell company half owned by Frank McCourt will be paid $14 million this year by the Dodgers to lease the parking lots. Apparently, that split corporation also controls the stadium naming rights.
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