Magic Brings Cache But Value of Dodgers Sale In Guggenheim
So the Los Angeles Dodgers are no longer property of Frank McCourt. The outgoing owner retains a stake in the parking lots (which he’ll purchase in some combination with a consortium of the buyers for $150 million) but those mostly exist as temporary restrooms and space for tailgating.
In his place, the saviors of Chavez Ravine, for the record-breaking price of $2 billion are an investment banking firm known as Guggenheim Partners (Guggenheim Baseball Management, LLC in this transaction). Oh, and an ex-Laker named Magic Johnson.
The NBA legend brings star power and a recognizable name. His associates bring the capital.
Mark R. Walter, CEO of Guggenheim becomes the controlling partner with Stan Kasten, former president of the Atlanta Braves and Washington Nationals, slated to run the day-to-day operations.
That arrangement is very similar to the one in Arlington where baseball man Nolan Ryan assumed the duties of running the franchise while the money men trusted him to successfully handle their investment.
In terms of financial incentives on both sides, this deal is mutually beneficial.
Frank McCourt likely recognizes profits of approximately $1 billion in the sale just in time for a $131 million payment due April 30th to his ex-wife.
Guggenheim and Magic Johnson purchase one of baseball’s signature franchises, a limitless opportunity that prior to 2011, regularly drew more than three million fans annually.
The Dodgers place 11th in Major League Baseball payroll standings in 2012, some $35 million behind their Los Angeles Angels of Anaheim counterparts.
Albert Pujols might have been the huge winter story in L.A. but Matt Kemp and Clayton Kershaw are destined for Hollywood mega-stardom if and when the new owners spend money around them.
This seems like a good time to mention the looming free agent market and a certain Southern California pitcher (Cole Hamels) who has yet to sign an extension with the Philadelphia Phillies.
The Dodgers, at least according to the numbers of the firm ($125 billion in management assets) now funding them, just hit the Mega Millions jackpot a couple of times over.
Magic Johnson is a fan-friendly addition but supporters of the Dodgers should be even more impressed by the financial prowess of the men around him.
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