NBA Hall of Famer and partners win club with $2 billion bid
GLENDALE, Ariz. -- A deal has been consummated between the Dodgers and Magic Johnson's bidding group for the Dodgers and Dodger Stadium for $2 billion, the club announced Tuesday night. The purchase price is the highest amount ever paid for a North American sports franchise.
The sale officially is to Guggenheim Baseball Management LLC, which includes Mark R. Walter as its controlling partner, Johnson, Peter Guber, Stan Kasten, Bobby Patton and Todd Boehly. Current owner Frank 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.
"I am 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," Johnson said.
The Dodgers released a statement at 8:04 p.m. PT announcing the sale.
"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," the club said in the 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," McCourt said. "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."
The Dodgers entered bankruptcy last June when they couldn't meet player payroll or pay bills after MLB Commissioner Bud Selig declined to approve a $3 billion agreement between FOX and the Dodgers to extend their television broadcast rights.
Based on a settlement with MLB and overseen by the bankruptcy court, McCourt had until April 1 to identify a winning bidder. The deal must close by April 30, the same day McCourt must pay his former wife, Jamie McCourt, a $131 million divorce settlement.
There were three final bidders in the auction run by Blackstone Advisory Partners on behalf of McCourt -- the group led by Johnson; one that included billionaires Steven Cohen and Patrick Soon-Shiong and agent Arn Tellem; and Stan Kroenke, owner of the St. Louis Rams.
The McCourts bought the Dodgers in 2004 from FOX for a net purchase price of $371 million -- $421 million minus $50 million in operating capital. With the $2 billion for the team and stadium, plus $300 million for the surrounding land and parking lots, the selling price is a total of $2.3 billion, just shy of $2 billion appreciation in eight years.
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