Business
Magic Johnson group to acquire Dodgers for $2 billion
Basketball legend turned entrepreneur Earvin “Magic” Johnson. PHOTO/File
A group that includes former Lakers star Magic Johnson and longtime baseball executive Stan Kasten agreed Tuesday night to buy the Los Angeles Dodgers from Frank McCourt for a record US$2 billion.
The price would shatter the mark for a sports franchise,, Stephen Ross paid US$1.1 billion for the NFL’s Miami Dolphins in 2009, and in England In Malcolm Glazer and his family took over the Manchester United soccer club in 2005 in a deal then valued at US$1.47 billion.
Mark Walter, chief executive officer of the financial services firm Guggenheim Partners, would become the controlling owner.
The deal, revealed about five hours after Major League Baseball owners approved three finalists for an intended auction, is one of several steps toward a sale 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.
As part of the agreement, the Dodgers said McCourt and “certain affiliates of the purchasers” would acquire the land surrounding Dodger Stadium, including its parking lots, for US$150 million.
“If they invested that much money, I’m sure they’ll invest to get us a winner,” said Tommy Lasorda, the Dodgers’ retired Hall of Fame manager. “I wish them all the luck, and I admire them. I know both of them. I know Magic from the day he came into Los Angeles as a basketball player for the Lakers.”
The acquiring group, called Guggenheim Baseball Management, has several other investors, among them Mandalay Entertainment chief executive Peter Guber, Guggenheim Partners president Todd Boehly and Bobby Patton, who operates oil and gas properties among his investments. Kasten is the former president of the Atlanta Braves and Washington Nationals.
