Dodgers sold for $2.15 Billion Dollars

• IggyPride00

  

  Only in America is all I can say.
  
  Frank McCourt was litterally the worst owner in professional sports for the past 8 years, having even driven the team into bankruptcy.
  
  His reward? A sale price that is literally double what the team is worth.
  
  He literally borrowed every dollar of the $430 million he bought the team with 8 years ago, and now is selling them for $2.15 Billion.....and gets to keep half the interest in the parking lot and surrounding real estate. Suddenly that $130 million dollar divorce payment to his wife he needs to make this year looks like chump change.
  
  Financially I am not sure how this deal ever works for the new owner. Unless they just really wanted to own the Dodgers and don't care about ever making a profit, I just don't see how this doesn't end up being a disaster. The stadium apparently needs $300 million dollars worth of renovation, and they don't even own the dead to the land free and clear because they let McCourt stay on as a partner some how.
  
  The Dodgers are a great franchise, but what does this make the Yankees/Red Sox worth who are arguably much better properties.
  
  NFL owners have to be doing cartwheels, because franchise values in that sport will be using this as a litmus going forward to value their teams. Baseball is comparatively small potatoes as far as TV money goes, and that kind of valuation on the Dodgers lifts everyone.
  
  I just found this whole thing stunning in the sense that it seems like the other 2 bids were around 1.2-1.4 billion, and this one came in wildly higher. It is just amazing to me.
  
  http://espn.go.com/los-angeles/mlb/story/_/id/7747476/los-angeles-dodgers-sale-magic-johnson-praised-deal-dissected
• chicago510

  

  I too was blown away by the sale price for three reasons:
  
  1) The second highest bid was reported to be 1.2-1.4 Billion
  2) That was the highest price EVER paid for any sports franchise by nearly double.
  3) Forbes has never valued ANY franchise at over the $2 billion mark. They had the Dodgers around $800 mil They valued the Yankees at $1.8 billion and the Red Sox at $900 mil for comparison.
  
  Not that the Steinbrenner family would ever sell, but if they did they should ask for $3-4 billion easy. Insanity.
• mucalum49

  

  All about regional TV contract revenue. The Angels got a contract for $3 billion last year and ESPN analysts were saying the Dodgers expect they'll be able to get more.
• Jawbreaker

  mucalum49;1130401 wrote:All about regional TV contract revenue. The Angels got a contract for $3 billion last year and ESPN analysts were saying the Dodgers expect they'll be able to get more.

  This.
  
  This isn't like the NFL where they all share the TV contract money.
• sleeper

  

  Overpaid by about 1 billion dollars.
  
  They will never realize a ROI.
• Gblock

  that ish cray
• Footwedge

  My God ...that's more money than I made over the past 3 years.
• said_aouita

  

  I guess Aids also makes you retarded. Magic Johnson & group are stupid.
  
  Going by what the Dodgers sold for, does that mean the Yankees are worth $5+ billion?
• Gblock

  said_aouita;1131023 wrote:I guess Aids also makes you retarded. Magic Johnson & group are stupid.
  
  Going by what the Dodgers sold for, does that mean the Yankees are worth $5+ billion?

  there was a blog out today saying 4 billion for the yankees...i also if i remember correctly i heard cowherd say they were purchased for 8.8 million
• Raw Dawgin' it

  

  If i were the owner of the red sox or yankees i'd in all out sell mode after this ha
• fan_from_texas

  Interesting note: my firm represented the party with the winning bid. I didn't personally do any work on it, but it's pretty cool to be at a place that does these sorts of deals.
• gerb131

  

  sleeper;1130798 wrote:Overpaid by about 1 billion dollars.
  
  They will never realize a ROI.

  A ripoff bigger than even MegaMillions.
• chicago510

  

  fan_from_texas;1131064 wrote:Interesting note: my firm represented the party with the winning bid. I didn't personally do any work on it, but it's pretty cool to be at a place that does these sorts of deals.

  Lol, I can only imagine the fees on a deal of this size.
• chicago510

  

  They paid almost 10x current annual revenues. Thats insanely idiotic.
  
  They better hope this TV deal materializes like expected or they will be screwed.
• fan_from_texas

  chicago510;1131068 wrote:Lol, I can only imagine the fees on a deal of this size.

  
  I'm sure it's outrageous. We recently handled the Cubs and Rangers sales, too, so this practice is on a bit of a roll.
• TBone14

  

  I read that the amount of money Magic's group bid over the 2nd closest bid could have bought the Astros. And probably the Indians.
• ichsnjb

  

  I heard this deal has something to do with bringing an NFL team to L.A.
• mucalum49

  

  ichsnjb;1131227 wrote:I heard this deal has something to do with bringing an NFL team to L.A.

  Khan saw how much a mediocre team is valued in LA so it entices him more to move the Jags to LA? Or do you mean the new Dodgers ownership would bring NFL to LA?
• ichsnjb

  

  I don't know.
• Ironman92

  

  said_aouita;1131023 wrote:I guess Aids also makes you retarded. Magic Johnson & group are stupid.
  
  Going by what the Dodgers sold for, does that mean the Yankees are worth $5+ billion?

  
  Didn't Magic make about 40 zillion dollars after he had to retire? Magic knows what he's doing.
• derek bomar

  

  This is your prize for beating AIDS: The Dodgers (followed 5 years later by bankruptcy, and possibly death)