Explaining Southern California's economy

How much could LA sports and entertainment giant AEG be worth in a sale?

AEG

In this rendering released by AEG, the proposed football stadium to house a NFL team in Los Angeles, California is seen. Today, AEG's parent company announced that it's seeking buyers for the entertainment and sports group, but L.A. Mayor Antonio Villaraigosa said that the stadium plan will move forward.

Earlier today, the Anschutz Corporation announced that it's "exploring" or "planning" a sale of the Anschutz Entertainment Group (AEG) — various media outlets reported the announcement differently — and has hired the the mergers-and-acquistions arm of the Blackstone Group to manage the bids. From the company's statement, however, the objective seems to be to transition "AEG to a new qualified owner," which sounds very much like this is the real deal.

A substantial minority stake in AEG — 49 percent — was nearly sold to Ticketmaster and Cablevision in 2008. The transaction didn't ultimately happen, but it was thought to be worth $200 million, making AEG at the time worth around $400 million in total. [UPDATE: I misread the NYTimes DealBook report from 2008 — AEG wasn't thought to be worth $1 billion at the time.]

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Q&A: What are the NHL owners and players fighting over?

2012 NHL Stanley Cup Final ? Game Six

Bruce Bennett/Getty Images

President, Business Operations, Alternate Governor Luc Robitaille of the Los Angeles Kings holds up the Stanley Cup. The Kings may not have to give it back this year if an impending lockout leads to canceled season, as it did in 2004-05.

If the National Hockey League's players and owners can't come to an agreement over a new contract in a little more than 12 hours, the NHL will be dealing with its fourth lockout in the past 20 years. So what are these guys fighting about. I'm glad you asked...

Q: If the owners do lockout the players, how long could fans be without their beloved hockey, hockey fights, and opportunities to wear player jerseys to stadiums across America and Canada?

A: This would be the fourth lockout since 1992. Back then, the lockout was relatively short and only 30 games were sacrificed. In 1994-95, hockey was AWOL for more than three months. And in 2004-05, the lockout lasted nearly a year and led to the cancelation of the NHL season.

Q: What does each side want?

A: The owners want to renegotiate the current collective bargaining agreement (CBA) with the players' union, which expires tomorrow at midnight. The CBA dates to 2005, when it took a reduction in player salaries of nearly a quarter, as well as a salary cap, to get a deal. It bears noting that this was before the financial crisis. Now the owners want to reduce what the players get from so-called "hockey related revenue" (HRR), according to AP. How much? Originally, the reduction was from 57 percent to 43 percent, but the owners upped that to 47 percent. The union did away with the percentages and asked for a preservation of the status quo: the same $1.8 billion they got in 2011-12. This could mean they will in practice accept less than 57 percent. But they've included a provision to get back to 57 percent of HRR by 2015-2016, according to NHL.com.

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NHL lockout? It wouldn't help the LA Kings' already iffy finances

2012 NHL Stanley Cup Final ? Game Six

Harry How/Getty Images

The Kings celebrate on ice on their way to a Stanley Cup. But they should get too excited. The team is losing money and the fourth NHL lockout since 1992 looms.

There's a very good chance that, unless NHL players and owners can come to some kind of miraculous eleventh hour resolution, the league will be dealing with its fourth lockout since 1992. As CBSSPorts.com points out, with each stoppage has come a bigger hit to the pro hockey schedule, culminating in the loss of the entire 2004-05 season. 

In Los Angeles, this means that the Stanley Cup-winning L.A. Kings may not enjoy the full fruits of their first season after a stirring victory. Some obvious question arise. If a lockout comes, how much will it cost the players? What will be the local ecoomic impact?

Those are relatively simple to answer. Some players, depending on where they are in their contracts (which pay out more in some years than in others), will feel some pain, although as Bleacher Report notes, a few players could head to the Kontinental Hockey League and garner reduced wages there.

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