Dodgers sold to Magic Johnson's group

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By Ken Gurnick / MLB.com

GLENDALE, Ariz. -- A deal has been struck between the Dodgers and legendary Laker Magic Johnson's bidding group for the Dodgers and Dodger Stadium for $2 billion, the club announced on Tuesday night. The purchase price is the highest amount ever paid for a North American sports franchise.

The sale officially is to Guggenheim Baseball Management LLC, which includes Mark R. Walter as its controlling partner, Johnson, Peter Guber, Stan Kasten, Bobby Patton and Todd Boehly. Current owner Frank McCourt and certain affiliates of the purchasers will also be forming a joint venture, which will acquire the Chavez Ravine property and parking lots for an additional $150 million.

"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," said Johnson. CONTINUE....

Los Angeles Dodgers Sale Complicated By Frank McCourt's Decision To Keep Land Surrounding Ballpark

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The decision by Frank McCourt to hang onto the parking lots and land surrounding Dodger Stadium is already complicating the sale of the team and caused one high-profile group to withdraw from the bidding process.

Developer Rick Caruso and former Dodgers manager Joe Torre decided to pass on bidding for the Los Angeles Dodgers and Dodger Stadium after discovering that McCourt intended to keep the lots, per the Los Angeles Times, as well as enforce an existing contract where the Dodgers lease the lots for $14 million annually. That MLB signed off on this provision is interesting and a little sloppy: it severely diminishes the value of the total package while at the same time takes out the only asset in the packages with any true upside. Indeed, having the ability to develop the land surrounding the ballpark is what interested Caruso -- and McCourt, way back when -- in the Dodgers package: it's a very attractive parcel of land for future development in the heart of Los Angeles. While there's certainly some upside in restoring the Dodger brand and bringing fans back to Dodger Stadium, it's safe to say there's considerably more upside in the development rights to Chavez Ravine. CONTINUE....

Related articles

• Report: Joe Torre, Rick Caruso Withdraw Bid To Purchase L.A. Dodgers (tracking.si.com)
• Joe Torre Drops out of Running to Buy LA Dodgers (bleacherreport.com)
• Caruso, Torre pull Dodgers bid: source (reuters.com)