Explaining Southern California's economy

Guggenheim's Mark Walter clarifies the McCourt parking lots deal

MPR529/Flickr (Creative Commons-licensed)

Dodger Stadium during a night game.

Mark Walter, the CEO of Guggenheim Partners and "controlling partner" of the Guggenheim Baseball Management team that includes Magic Johnson and is buying the Dodgers for $2 billion, has finally commented on the burning issue of the sale: What's going on with Frank McCourt and the parking lots?

Thanks to Mark Lacter at LA Biz Observed for digging this up:

ESPN is reporting that the Dodger sale includes a 50 percent stake in the parking lots, which are said to have a value of $300 million. Current owner Frank McCourt will keep the other half.
[Controlling owner Mark] Walter said he understood the concerns, but insisted that McCourt will only have an "economic interest" in the land and not any control or influence over it. "Frank's not involved in the team, baseball, any of that," Walter said. "What Frank does have is an economic interest in land, but we control the parking and all the fan experience and that's of the utmost importance to us."

Read More...

What's the deal with the Dodgers parking lots?

Dodger Stadium Bleachers

pvsbond/Flickr (cc by-nc-nd)

The bleachers stand empty at Dodger Stadium in Los Angeles, California. You can see Frank McCourt's precious parking lots in the background.

Forget that Magic Johnson, Stan Kasten, Peter Guber, and Guggenheim Partners — as "Guggenheim Baseball Management" — are buying the L.A. Dodgers for $2 billion. Everyone really wants to know what's going on with Frank McCourt and the massive parking lots!

At L.A. Weekly, David Futch summarizes:

Though many wanted him gone for good, under the sales terms, McCourt will be co-owner of the surrounding lands. In essence, he purchased the Dodger acreage from himself along with his new partner, a still-unnamed affiliate of Guggenheim.
McCourt has dreamed of a major development that could substantially alter the deliberately scruffy, artsy Echo Park vibe. Locals fear that the tin-ear McCourt will champion something along the lines of The Grove in the Fairfax District, an upscale mall that’s anethema to Eastsiders — many of whom make a sport of dumping on cookie-cutter chain stores and Muzak drifting from outdoor speakers shaped like boulders.

Read More...