Kristie Wold from Downey, CA celebrated McCourt's decision to part with the Dodgers on Wednesday, November 2, 2011.
Well, this was totally unexpected. Jared Kushner — the boyish owner of the New York Observer, scion of a somewhat controversial money clan from the Big Apple, and husband to Ivanka Trump — has made it to the next round of bidding for the Los Angeles Dodgers. How Kushner gets through when Dallas Mavericks owner Mark Cuban doesn't is a mystery to me. But there he is. This is from Bill Shaikin at the LA Times:
Jared Kushner, born into a prominent New York real estate family and son-in-law of Donald Trump, has emerged as a candidate in the bidding for the Dodgers.
Kushner, who became owner and publisher of the New York Observer in 2006, has played a key role in expanding the family business beyond real estate. At 31, he would be the youngest owner in Major League Baseball.
The Kushner bid is one of at least nine to advance to the second round of the Dodgers' ownership sweepstakes. The bid has not previously surfaced publicly and was confirmed by a person familiar with the sale process but not authorized to discuss it.
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The bleachers stand empty at Dodger Stadium in Los Angeles, California.
Just a quick update on the sale of the Los Angeles Dodgers. The bids were submitted last week and already a few potential buyers have dropped out. Most prominent among these is Dallas Mavericks owner Mark Cuban, who tried to buy both the Chicago Cubs and the Texas Rangers when they available were (he failed in both cases).
Magic Johnson, the Lakers superstar and successful regional businessman, is still in the running, however. As are two of the big money guys who've been discussed as prospective owners: East Coast hedge-fund king Steven Cohen; and LA-based private-equity duke Tom Barrack.
Additionally, St. Louis Ram's owners Stan Kroenke — a player whom I hadn't written about — made the cut, which was managed by Dodgers owners Frank McCourt in concert with the investment back that's advising him on the sale, Blackstone Advisory Partners. Given that the Rams could be the new LA NFL franchise, depending on how things go with the AEG Downtown stadium project (the project is still in search of a team, and it seems to be down to the Rams and Raiders), I'm not sure how Kroenke could own two sports teams in town. But that's for the NFL and Major League Baseball to sort out.
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There's been plenty of speculation about who might buy the Dodgers out of bankruptcy. But today's the day that the bids are going to start coming in. This is a "soft" deadline, meaning that yet another rich guy who wants to buy the team could still put in a bid. But at this point we have a fair idea of who the major players are likely to be.
The Dodgers could sell for anywhere from $800 billion to $2 billion, based on reported speculation. At the LATimes, Bill Shaikin does the math and concludes that Dodgers owners Frank McCourt is on the hook to various creditors and his impending ex-wife for just north of $1 billion. So a we're probably talking about a sale price of around $1.5 billion.
Here's how the sale process will work. McCourt and Blackstone Advisory Partners will take the initial bids. They expect 20, and Major League Baseball says it will consider 10. However, given that there's only a few months between now and April 1, when it's anticipated that McCourt will announce a winning buyers, there probably won't be that many.
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One of the potential bidders for the Dodgers, due to be sold out of bankruptcy by April 30, is Steven Cohen, a secretive and monumentally successfully hedge fund billionaire. I've already written about how he made his money. I've also speculated on why he might want the Dodgers. What I haven't dealt with is that possibility that he could wind up in jail.
That's probably overstating the case. However, Cohen's firm, SAC Capital Advisors, has seen a number of former employees get in hot water with the Securities and Exchange Commission over insider trading. And the heat just got turned up a few notches. As part of an ongoing investigation into insider trading at hedge funds, the FBI has arrested three SAC Capital alumni (and they aren't the first to face prosecution). This is from CBNC's John Carney:
AP Photo/Matt Sayles
Robert Pattinson, Left, Kristen Stewart, and Taylor Launter, right, arrive at the world premiere of "The Twilight Saga: Breaking Dawn - Part 1" on Monday, Nov. 14, 2011, in Los Angeles.
Lionsgate just announced that it's buying Summit Entertaiment, the studio that produces the popular "Twilight" movies, for $412.5 million. Not really hugely big news there, except that The Wrap is reporting that billionaire investor Tom Barrack's private-equity firm, Colony Capital, wanted Summit but dropped out of the bidding several weeks ago.
How can Barrack handle losing out on a chance to buy the studio that transformed the books he found...transformative! into movies? After all, it was the "Twilight" books that got Barrack through a dark night of the soul on a lonely yacht off the coast of Turkey.
I'm not making this up. The Wall Street Journal revealed all in 2010. The WSJ also ran the colorful memo that Barrack's "Twilight" experience compelled him to write to his employees.
Here's an extended taste: