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Magic Johnson’s group to buy Dodgers for $2 billion

metirish Mar 28 2012 06:02 AM

WOW Magic Johnson’s group to buy Los Angeles Dodgers for $2 billion, according to Major League Baseball The long and contentious sale of the Los Angeles Dodgers ended Tuesday night when the iconic but troubled franchise announced that a group led by basketball Hall of Famer Magic Johnson would purchase the team from owner Frank McCourt for a staggering $2 billion. Johnson and his partners in Guggenheim Baseball Management LLC, which includes controlling partner Mark R. Walter, Peter Guber, Stan Kasten, Bobby Patton and Todd Boehly, beat out several of the wealthiest businessmen in the country in an auction for the team, including New York are hedge fund manager Steven Cohen, who recently purchased a $20 million minority share of the New York Mets. Cohen, who runs SAC Capital Advisors LP, was considered the frontrunner to win the bid, followed by Stan Kroenke, who owns the National Football League's St. Louis Rams and Arsenal of English soccer's Premier League, and Guggenheim. The agreement, announced by the Dodgers about five hours after Major League Baseball owners approved the three finalists for the auction, is subject to approval in federal bankruptcy court and is expected to close by the end of April, when McCourt must pay $131 milllion to his ex-wife Jamie in what became a bitter divorce settlement leading to the sale of the team. The Guggenheim group landed one of Major League Baseball's historic franchises, and the $2 billion figure, which will immediately inflate the value of New York's Yankees and Mets franchises, easily tops the record sales price for a U.S. sports team -- the purchase of the Miami Dolphins for $1.1 billion in 2009 by Steve Ross. The Dodgers' announcement said that McCourt and "certain affiliates of the purchasers will also be forming a joint venture, which will acquire the Chavez Ravine property for an additional $150 million." The Chavez Ravine parking lots had been a bone of contention in the sale, with McCourt angling to keep control of them and the bidders insisting they must be included in the sale price. "This transaction underscores the Debtors' objective to maximize the value of their estate and to emerge from Chapter 11 under a successful Plan of Reorganization, under which all creditors are paid in full," said the Dodgers' statement. "This agreement with Guggenheim reflects both the strength and future potential of the Los Angeles Dodgers, and assures that the Dodgers will have new ownership with deep local roots, which bodes well for the Dodgers, its fans and the Los Angeles community," said McCourt, who took the Dodgers into bankruptcy following a nasty divorce battle with his wife, Jamie McCourt. "We are delighted that this group will continue the important work we have started in the community, fulfilling our commitment to building 50 Dream Fields and helping with the effort to cure cancer." Johnson said he is "thrilled to be part of the historic Dodger franchise and intend to build on the fantastic foundation laid by Frank McCourt as we drive the Dodgers back to the front page of the sports section in our wonderful community of Los Angeles." The Guggenheim group will now have an opportunity to launch a potentially lucrative regional sports network in the country's second largest market, or sign a new local broadcast deal with the current broadcaster, News Corp.'s Fox unit, which has already offered the team a 17-year extension valued at nearly $3 billion. McCourt put the Dodgers into bankruptcy in June and engaged in a battle with commissioner Bud Selig, who he said forced the team into a cash crisis by rejecting a new contract with Fox Sports, which holds the team's television rights through the 2013 season. — with Wire Services Read more: http://www.nydailynews.com/sports/baseb ... z1qPcby2Ve

bmfc1 Mar 28 2012 06:21 AM Re: Magic Johnson’s group to buy Dodgers for $2 billion

Ugh. Selig is friends with Fred Wilpon so he props him up with a loan and doesn't force him out. Selig isn't friends with McCourt so no loan which helped force him out. We still have Fred and no hope for the near future, while the Dodgers have new ownership, including smart guy Stan Kasten, and lots of new money to help the team.

metirish Mar 28 2012 06:24 AM Re: Magic Johnson’s group to buy Dodgers for $2 billion

And McCourt makes out like a King, he must be chuffed to say the least.

Frayed Knot Mar 28 2012 06:52 AM Re: Magic Johnson’s group to buy Dodgers for $2 billion

metirish wrote: And McCourt makes out like a King, he must be chuffed to say the least. Except that once his lawyers, his ex-wife, and her lawyers get through it all, his cut is going to be 2 dollars and 32 cents.

John Cougar Lunchbucket Mar 28 2012 06:55 AM Re: Magic Johnson’s group to buy Dodgers for $2 billion

This might seem like an ignorant question, but what's going on with that aids virus magic had? I mean, shouldn't he be dead or something?

Benjamin Grimm Mar 28 2012 07:04 AM Re: Magic Johnson’s group to buy Dodgers for $2 billion

I don't think he had AIDS, did he? Just HIV, if I remember right. And HIV is no longer the death sentence it once was, thanks to the drugs that have been developed. Magic Johnson is, literally, living proof of that. He's been living with HIV for about twenty years now.

Edgy MD Mar 28 2012 07:35 AM Re: Magic Johnson’s group to buy Dodgers for $2 billion

Yeah man, anti-virals have been what we've all waited for and haven't really been celebrated enough for the triumph they are, because they're an effective therapy and not a cure. But we're saving millions with them. People are living for decades after their diagnoses rather than year or two they were getting back in 1983. And (PSA coming) thanks to our PEPFAR programs, these drugs are available to the poorest of the poor. When the budget-cutters come around in Congress, demand that your Congressmembers keep PEPFAR alive. It's accountable, it's cost-efficient, and the value-added is immeasurable.

LeiterWagnerFasterStrongr Mar 28 2012 10:05 AM Re: Magic Johnson’s group to buy Dodgers for $2 billion

And your new batting instructor... SHEILAAAAAAAAA E!

Edgy MD Mar 28 2012 10:11 AM Re: Magic Johnson’s group to buy Dodgers for $2 billion

This will be the third franchise Stan Kasten has owned a chunk of. He could be like the new Veeck.

Edgy MD Mar 28 2012 10:12 AM Re: Magic Johnson’s group to buy Dodgers for $2 billion

Oh, and by the way, if you just bought a piece of the Mets two weeks ago, congratulations.

Ashie62 Mar 28 2012 10:30 AM Re: Magic Johnson’s group to buy Dodgers for $2 billion Edited 1 time(s), most recently on Mar 28 2012 05:55 PM

But does Magic Johnson get to take batting practice at Dodger Stadium mow?

Edgy MD Mar 28 2012 10:45 AM Re: Magic Johnson’s group to buy Dodgers for $2 billion

Magic gets to do whatever he wants. That's nothing new.

Mets – Willets Point Mar 28 2012 11:59 AM Re: Magic Johnson’s group to buy Dodgers for $2 billion

When is he going to move the team back to Brooklyn?

smg58 Mar 28 2012 12:34 PM Re: Magic Johnson’s group to buy Dodgers for $2 billion

Has anybody offered the Wilpons anything close to 2 billion for the Mets? So McCourt uses Dodger revenue to pay for his divorce settlement while defaulting on team bills, and gets 2 billion for his troubles. It may be the opposite of what Selig intended, but he's the big winner of this transaction. It will be interesting to see if the new ownership has any money left to actually spend on players.

Edgy MD Mar 28 2012 12:52 PM Re: Magic Johnson’s group to buy Dodgers for $2 billion

Well, his creditors and wife need to be paid first, but sure. As for spending on players, a lot of the contracts are already in place, and if the revenue is there --- and it should be --- the budget should be large.

Benjamin Grimm Mar 28 2012 05:00 PM Re: Magic Johnson’s group to buy Dodgers for $2 billion

Can we get Bernard King to buy the Mets?

Edgy MD Mar 28 2012 08:00 PM Re: Magic Johnson’s group to buy Dodgers for $2 billion

And... check.