Photo Credit: SpaceX
Tesla Motors and SpaceX CEO is the DeBord Report's 2012 L.A. Businessperson of the Year!
On Tuesday, I announced that today (Thursday) the DeBord Report would be naming its 2012 L.A. Businessperson of the Year. To bring readers into the discussion, we also launched a poll, so that you good folks could vote for the two candidates:
•Former Dodgers owner Frank McCourt, who bought the team for $430 million and sold it for...$2 billion!
•Tesla Motors and SpaceX CEO Elon Musk, who has created a market for high-end electric cars, opened the era of private space flight, and has declared his intention to retire on Mars.
First the results of the voting: It's Musk by a landslide: 91 percent versus only about 8 percent for McCourt. BUT that's still 8 percent for McCourt! So maybe he isn't as widely loathed as some thought.
One percent chose, as far as I can tell, Mickey Mouse. Someone always has to vote for Mickey Mouse...
Jordan Strauss/Getty Images for Tesla
Elon Musk has had quite a year. Tesla won Motor Trend's Car of the Year with its all-electric Model S. SpaceX went to International Space Station an kicked off the era of commercial space flight. And then there's the forthcoming Solar City IPO. Is he L.A.'s Businessman of the Year?
It's the time of year for year-end lists and … contests! Not to mention awards. For 2012, the DeBord Report will be conducting a simple contest to name L.A.'s Businessperson of the Year.
You can vote on the entrants in the poll below and share your thoughts in the comments, but I'll be making the final call. And so, without further ado, here are the candidates for the DeBord Report's 2012 L.A. Business Person of the Year.
The businessman that, for the most part, Angelenos love to hate. The former Dodgers owner made his fortune in parking lots back in Boston before coming west and buying the Boys in Blue from Rupert Murdoch's NewsCorp in 2004 for $430 million.
In 2009, the long saga of Frank's divorce from wife Jamie and his subsequent battle with Major League Baseball began. By 2011, McCourt had put the team, then valued at around $750 million, into bankruptcy.
Blackstone Group CEO Stephen Schwarzman at the World Economic Forum in Davos. Blackstone has been hired by AEG to explore a sale of the sports and entertainment giant.
Anschutz Entertainment Group (AEG) — the huge L.A.-based media, events, and sports company owned by reclusive Colorado billionaire Phil Anschutz — is looking at selling itself. In whole? In parts? What does this all mean for an AEG-backed Downtown L.A. NFL stadium? It's unclear. Buyers are already being talked about, with the richest man in L.A., biotech billionaire Patrick Soon-Shiong, already nominated as a bidder. Makes sense, as he was a late arrival to the bidding war for the L.A. Dodgers, losing out to the eventual new owners, Magic Johnson and Guggenheim Baseball Management.
He's worth around $7 billion. Phil Anschutz is worth around $8 billion. It would be a match of lucky $7 billionaire and the billionaire who has a billion more.
But I'm getting ahead of myself. AEG has hired Blackstone, an investment bank that managed the Dodgers sale, to work on a potential AEG deal. This isn't as easy as selling the Dodgers, which both had to be sold (former owner Frank McCourt put the team in bankruptcy over a dispute with Major League Baseball and also had to contend with paying his divorce settlement to his ex-wife) and was more concentrated in its assets. AEG is a far-flung holding company that owns pieces of L.A. sports teams, international sports teams, entertainment venues, live events, theaters, and even hotels.
Denis Poroy/Getty Images
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.
Denis Poroy/Getty Images
SAN DIEGO, CA - APRIL 5 : Magic Johnson (L) sits with Frank McCourt during the game between the Los Angeles Dodgers and the San Diego Padres in the home opener at Petco Park on April 5, 2012 in San Diego, California. (Photo by Denis Poroy/Getty Images)
The Dodgers and the organization's creditors began filing documents with the bankruptcy court in Delaware that's overseeing the team's sale. We didn't learn a whole lot beyond the known value of the deal: $2.15 billion, consisting of a cash offer, the assumption of the team's existing debt, and a side deal with outgoing owner Frank McCourt for the real estate around the stadium, currently blanketed with parking lots.
What we want to know is where the money that Guggenheim Baseball Management (GBM) — the entity that consists of Magic Johnson, Stan Kasten, Peter Guber, and financier Mark Walter of Guggenheim Partners — has brought to the deal is coming from. Remember, the final sale was conducted preemptively, without the anticipated auction that McCourt was going to conduct among the three final bidders. And the final sale price came in over half a billion higher than the initial bid than Major League Baseball approved from Guggenheim.