OT - Magic buys the Dodgers

[Dback Jon]

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 $2 billion.

Mark Walter, chief executive officer of the financial services firm Guggenheim Partners, would become the controlling owner. The price would shatter the record for a North American sports franchise, topping the $1.1 billion Stephen Ross paid for the NFL's Miami Dolphins in 2009.

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.



Read more: http://www.azcentral.com/sports/dia...h-deal-magic-johnson-group.html#ixzz1qRfTyJI5

 

[Folster]

$2 billion is insane. Mark Cuban wasn't interested after the asking price reached $1 billion. McCourt bought them in 2004 for $355 million. Forbes estimated their value at $800 million in 2011. http://www.forbes.com/lists/2011/33/baseball-valuations-11_Los-Angeles-Dodgers_338671.html

 

[82CardsGrad]

Can't imagine what's about to happen to ticket, beer and food prices...

 

[TheHopToad]

What makes them attrative right now and why this price might turn out to be a good deal, is that their broadcast rights are coming up for renewal. Speculation is that they may be able to secure a long-term deal with either FOX or Time Warner for around $5B.

 

[Brian in Mesa]

Can't imagine what's about to happen to ticket, beer and food prices...

Not much, IMHO. Probably stay the same or go down to keep the fans happy and coming to the park.

There's also this:

http://www.latimes.com/sports/dodgersnow/la-sp-sn-dodgers-tv-rights-20120328,0,847499.story

If the $2 billion that Magic Johnson's group paid to buy the Dodgers sounds like a lot of money, just wait until the new owners auction off the team's television rights.

With Time Warner, Fox and others expected to show interest, estimates for the total value of the deal have risen as high as $4 billion.

 

[crisper57]

This is very good news for us. It shows a complete disregard for quality analysis and paying the true value of a product. The Dodgers can now try to outbid the Yankees and Red Sox for aging/declining talent. And let's not forget that their neighbors in Anaheim have also jumped into the overpaying pool.

While the continue to overpay to remain in the popularity contest, KT will continue to find diamonds in the rough.

I predict the Dodgers will be cash-strapped from this stupid move down the road and in the long term, they will have a hard time recovering. And that is before they compound this mistake with stupid FA moves.

 

[TheHopToad]

This is very good news for us. It shows a complete disregard for quality analysis and paying the true value of a product. The Dodgers can now try to outbid the Yankees and Red Sox for aging/declining talent. And let's not forget that their neighbors in Anaheim have also jumped into the overpaying pool.

While the continue to overpay to remain in the popularity contest, KT will continue to find diamonds in the rough.

I predict the Dodgers will be cash-strapped from this stupid move down the road and in the long term, they will have a hard time recovering. And that is before they compound this mistake with stupid FA moves.

While your example compares them to the Yankees and Red Sox in the "overpaying pool", it must be said that those two franchises have dominated baseball in the last 15 years and have seven World Series titles to show for it in that time.

Money talks. I expect the Dodgers to start trying to buy a ring. Don't underestimate the competitive drive that Magic has. That group is already loaded and is about to double their investment with a huge TV deal.

Yankees West....

 

[Folster]

While your example compares them to the Yankees and Red Sox in the "overpaying pool", it must be said that those two franchises have dominated baseball in the last 15 years and have seven World Series titles to show for it in that time.

Money talks. I expect the Dodgers to start trying to buy a ring. Don't underestimate the competitive drive that Magic has. That group is already loaded and is about to double their investment with a huge TV deal.

Yankees West....

I doubt Magic has any real role in decision making. He's just the face of the ownership group, a mascot if you will.

 

[TheHopToad]

I doubt Magic has any real role in decision making. He's just the face of the ownership group, a mascot if you will.

Magic has charm and influence. The next time a big free agent is sitting on the fence pondering what deal to take, it will only take a visit from Magic and a conversation about winning to get the deal done.

Magic doesn't have to have a technical baseball role to be effective. Players will want to play for him.

 

[slinslin]

Listening to Magic Johnson as a basketball analyst I am pretty sure you do not want him anywhere close to the decision making.

 

[coyoteshockeyfan]

Meh. Everybody said the same thing when Jordan started his front office dalliances, and that's been a total disaster. Ownership prestige means next to nothing.

 

[crisper57]

While your example compares them to the Yankees and Red Sox in the "overpaying pool", it must be said that those two franchises have dominated baseball in the last 15 years and have seven World Series titles to show for it in that time.

Money talks. I expect the Dodgers to start trying to buy a ring. Don't underestimate the competitive drive that Magic has. That group is already loaded and is about to double their investment with a huge TV deal.

Yankees West....

I get what you are saying, but I think the Yankees and Red Sox will still get the overpaid athletes that are closer to their value, while the decision-makers will go for style over substance and get much less value in return. It's okay to try and buy a ring (we did it in AZ), but you have to have an eye for talent in order to overpay for the right guys. I don't see anyone in this new group that makes me think they will spend their money well.

 

[BC867]

I don't see anyone in this new group that makes me think they will spend their money well.

What about former Atlanta Braves and Washington Nationals President Stan Kasten? He is going to be running the operation.

 

[crisper57]

What about former Atlanta Braves and Washington Nationals President Stan Kasten? He is going to be running the operation.

Didn't really see much in Washington that impressed me. And he delegated all the big moves for the Braves to Schuerholz. But I guess him and Magic can talk NBA. He was the Hawks GM too. Just another figurehead.