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Los Angeles Dodgers owner Frank McCourt. He sold the team, but kept the parking lots, to the tune of $14 million a year.
Now that the Los Angeles Dodgers have been officially sold, for the record-setting price of $2 billion, we can, without emotion, consider the accomplishment of former owner Frank McCourt.
You'd have to seriously consider him for the title of businessman of the year. Seriously.
Why? Because in 2004, McCourt bought the Dodgers for $430 million, using effectively none of his own money. After satisfying the various debts related to the team as it emerged from bankruptcy court into the arms of Magic Johnson's ownership group, Guggenheim Baseball Management (GMB), McCourt should clear something like $1 billion. He had to pay his ex-wife $131 million in their divorce settlement — but the side deal he did for the Dodger Stadium parking lots amounted to $3 billion, split between himself and what has been described as an "entity" associated with the new owners. At $150 million, his half wound up being worth close to $20 million more than Jamie's payout.
Meet the Dodgers' new ownership team. Who do you think that tall guy in the XXXL jersey in the middle bearing number 12 is?
The new Dodgers owners are in the middle of a Vin Scully-emceed press conference on a gray and rainy day at Dodger Stadium (let's hope the old wedding adage about bad weather is proven true in this new betrothal). Magic Johnson provided the rousing message about making the team back into winners, living up to the legacy of the great players of the past.
Mayor Antonio Villaraigosa said the usual politician things.
Interestingly, Major League Baseball Commissioner Bud Selig didn't make it to centerfield.
Stan Kasten, the veteran baseball pro who'll be running Dodger operations, quipped that "he'd been under a gag order" for six months, then highlighted the "TLC" that Dodger Stadium, turning 50 this year, needs. He spoke of "enhancements," of bringing the experience "into the 21st century." Given the fan exodus that the Dodgers saw over the past few years, and given that the stadium is no longer thought of as a safe place to see a game, Kasten pressed home a message about serving the team's loyalists. He even rolled out an email suggestion box: firstname.lastname@example.org. And if that sounds kind of old school, he also nodded toward social media.
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Magic Johnson sits with Frank McCourt during a game between the Los Angeles Dodgers and the San Diego Padres. The Dodgers are finally sold. Now we can move on to the Padres!
Well, our long local nightmare has finally drawn to an anticlimactic close. After a briefly alarming delay last night, the Los Angeles Dodgers are now no longer the property or Frank McCourt but belong instead to Guggenheim Baseball Management, a group made up chiefly of Magic Johnson, Stan Kasten, and Mark Walter, the CEO of Guggenheim Partners. The purchase price was a whopping, record-setting $2.15 billion.
The thorn in the side of Angelenos who grew to...well, let's just say dislike McCourt over the years will be the former owner's 50-percent stake in the parking lots around Dodger Stadium. GBM will get to collect the parking fees for games, but McCourt will be able to propose development plans — although they'll have to be approved by the new owners.
The press conference is tomorrow. Don't know where it is yet, nor what time, but rumor has it that Walter will be in attendance.
It doesn't say Time Warner Cable.
I caught wind of some rumors about a week ago that the Dodgers' new owners, Guggenheim Baseball Partners, led by Magic Johnson and Guggenheim Partners CEO Mark Walter, might have done a sort of pre-deal with...somebody for the team's future broadcast rights. It appears that the rumor was just that. Here's Bill Shaikin from the L.A. Times (note than Fox has the current broadcast deal):
Under its settlement with the Dodgers, Fox had the right to challenge any sale in which rival Time Warner Cable was involved. The Dodgers already had told the court that TWC was not involved, but Fox asked for assurances from the new owners.
According to Thursday's filing, the new owners would state for the court record that TWC is not directly or indirectly funding the purchase of the Dodgers and that no "formal or informal agreements have been reached with TWC to telecast [Dodgers] games for the 2014 MLB season or beyond." U.S. Bankruptcy Judge Kevin Gross would then include that language in his order approving the sale.
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Andre Ethier #16 of the Los Angeles Dodgers greets his teammates after being introduced on Opening Day prior to playing the San Francisco Giants at Dodger Stadium on March 31, 2011.
Welcome to your 2012 Dodgers home opener revenue projection!
Since 2009, the Los Angeles Dodgers have seen their yearly revenues fall into a death spiral, culminating in Frank McCourt's decision to put the team into bankruptcy and — just a few weeks back — sell it to Magic Johnson, Stan Kasten, and a group of investors headed by Guggenheim Partners' CEO Mark Walter. The numbers are rough: $286 million in 2009 down to $230 million (estimated) in 2011. That slide happened against the backdrop of more than $500 million in debt, now due to be discharged by the sale of the team and assumed by the new owners.
Oh, and Dodger Stadium needs to be fixed up. That will cost at least $200 million.
Last year, the L.A. Times broke down the revenues:
[T]icket receipts of $107.2 million were the largest contributor (37.5%) to the Dodgers' $286 million in total revenue that year.
The second-biggest contributor was $42.6 million from MLB funds that the teams divide, such as from national television broadcasts and MLB.com. That was followed by local broadcasting revenue ($41.5 million), advertising promotions ($27 million), concessions ($25.5 million), suite rentals ($20 million) and parking ($11 million).