Los Angeles Dodgers owner Frank McCourt announced an agreement Tuesday night to sell the bankrupt team for $2 billion to a group that includes former Lakers star Magic Johnson and former Atlanta Braves and Washington Nationals president Stan Kasten.
The agreement, revealed about five hours after Major League Baseball owners approved three finalists for the auction, is to lead to a transfer of the team by the end of April. It is subject to approval in federal bankruptcy court.
“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 in a statement.
Mark Walter, chief executive officer of the financial services firm Guggenheim Partners, would become the controlling owner. The price easily would be a record for a North American sports franchise.
As part of the agreement, the Dodgers said McCourt and “certain affiliates of the purchasers” would acquire the land surrounding Dodger Stadium for $150 million. A source with knowledge of the situation, speaking on the condition of anonymity, told ESPNLosAngeles.com’s Tony Jackson that means the group will purchase half the Dodger Stadium parking lots, which were deemed to have a total value of $300 million, with McCourt keeping the other half. The source said it has yet to be determined how that relationship will work and whether the new ownership group still will be forced to lease the McCourt-owned half of the lots.
The acquiring group, called Guggenheim Baseball Management, includes Mandalay Entertainment chief executive Peter Guber.
“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.
McCourt paid $430 million in 2004 to buy the team, Dodger Stadium and 250 acres of land that includes the parking lots, from the Fox division of Rupert Murdoch’s News Corp., a sale that left the team with about $50 million in cash at the time. The team’s debt stood at $579 million as of January, according to a court filing, so even after the divorce payment, taxes and legal and banking fees, he stands to make several hundred million dollars.
Kasten is expected to wind up as the team’s top day-to-day executive.
Via: Espn.Go.Com
