Explaining Southern California's economy

Who is Tom Barrack, the latest billionaire to covet the Dodgers?

Bill Shaikin of the LA Times is reporting that Tom Barrack, an LA-based billionaire real-estate investor, has joined the ever-expanding list of potential bidders for the Dodgers. The team was put into bankruptcy by embattled owner Frank McCourt and has to be sold to somebody by April 30.

Prospective somebodies include Rick Caruso and Joe Torre; Magic Johnson; Mark Cuban; and a furtive Connecticut hedge-fund billionaire, Steven Cohen

Barrack ads some new local flavor to the action. I feel obligated, however, to explain how the various Very Rich Men who are interested in owning the team made their money — and what that could tell us about how they'd run the Dodgers.

I've already tackled how Steven Cohen amassed his hedge-fund billions. Now I'll take a look at Barrack.

At base, the guy does real estate. From the helm of his $34-billion private-equity shop, Colony Capital in Santa Monica, Barrack manages this most debt-intensive of investments. His mojo is to zero in on "distressed" assets — properties that could be worth a lot more than their apparent face value and, being real estate, provide an obvious form of collateral to use for leverage — and, to put it simply, fix them up. This is from a New York Magazine profile of Barrack, a 63-year-old USC grad, that appeared in late 2010:

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