Tuesday, March 27th, 2012 at 11:30 pm  |  14 responses

Magic Johnson-Led Group Buys LA Dodgers for a Record $2 Billion

Magic Johnson’s interest in buying the LA Dodgers was no secret, and his investment group has won the bid for the legendary baseball team, for the hefty and record-breaking sum of $2 billion. Per the AP: “Los Angeles Dodgers owner Frank McCourt has announced an agreement 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, announced Tuesday night about after 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. Mark Walter, chief executive officer of the financial services firm Guggenheim Partners would become the controlling owner. The price would be easily a record for a North American sports franchise.”

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  • Ismael

    2 freakin billion?!?!?!?! for the L.A. Dodgers?!?! WHY?

  • thetalkingcomb

    And it doesn’t even include parking.

  • S Kemp

    I honestly had no idea Magic had this kind of money, I know not all of the 2 billion is his but he must have some serious cash.when he was playing in the early 90s NBA money was nowhere near what it is now so I find this story pretty incredible.

  • thetalkingcomb

    A lot of it would certainly be in loans, which is why they brought the private equity guys in. I’m not sure any group would pay any higher than what they paid though, so I guess they are stuck with the team for the time being. I’m not an expert on the economics of baseball though, although I believe it would have been better invested in an NBA team or a famous football club simply because of the greater international audience.

    I guess they saw an open opportunity and took it, but I’m surprised that Stan Kroenke didn’t win it, seeing how he lacks only an MLB team for him to be the dominant playa in the game.

  • Rhubarb Rhino

    Any business’s gross profit pa should add up to its value over 5 year (10 years max if its a really sound investment) So a baseball team makes $200m gross profit pa??? I’m from Australia so we play cricket, is baseball THAT big in the US????

  • http://cnbc.com JTaylor21

    Magic is paying only a portion of that price, there are a couple other big dogs that are footing the majority of the bill.

  • Ash

    Not only did Magic Johnson NOT lead the group, but he’s actually far from being a majority owner. The principal owner of the team is the CEO of the Guggenheim Financial group. A few other individual major financial contributers also work for that firm. Magic Johnson is more of a name than anything, though he did put a nice chunk of his own money down.

  • dazzy

    I can easily see my Yankees being worth that much, but the Dodgers? Man please.

  • Mark

    Don’t forget tho, Magic Johnson owns LOTS of business’s he has alottt of money he may not be owning much of it or whatever,but you can bet he put alottttt of money into this.

  • MikeC.

    I don’t understand the economics of baseball. How are the teams worth so much when they never fill their stadiums? I went to a Blue Jays game last June and sat 3rd row on the first base line and my ticket was $17.00. I sat 7th row at MSG for a Knicks game and the cost of those tickets made my credit card explode and implode at the same time. There is now a black hole where my Mastercard used to be.

  • http://slamonline.com nbk

    The Dodgers were valued at $800M just last year. They weren’t worth even remotely this much.

  • Buujangles

    The McCourts bought the dodgers for 274 mil and sold it for a cool 2 billion. damnnn

  • alpahbeta

    Magic 2-yrs ago, unloaded all his Starbucks for a cool $100 mil, plus his 5% stake in the Lakers, so I’m pretty sure he was setting up his move into this deal. I think he may have put in $100 mil into this deal, but $2 billion is ridiculous. How do they even compute any profit out of this deal. MLB has no where near the margins NFL teams have. McCourt payed $450 mil or so, just 8 yrs ago for the Dodgers, and turns around and 5x his investment….dang he made off good.

  • robb

    Magic isn’t paying that money S Kemp, he’s only contributing with a small percentage but his presence was very important to get that deal done.