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Home MLB News MLB Club Sales The McCourt Era Is Over as Sale of Dodgers Complete

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The McCourt Era Is Over as Sale of Dodgers Complete PDF Print E-mail
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MLB Club Sales
Written by Maury Brown   
Tuesday, 01 May 2012 13:32
Sale of the Los Angeles Dodgers
It's over... Frank McCourt has officially left Dodger Stadium

The sale of the Los Angeles Dodgers took an extra day to complete, but it’s finally over. With it, Frank McCourt is out and new ownership that sees Ervin “Magic” Johnson and former Braves and Nationals exec. Stan Kasten, is in.

I go over it all in detail for Baseball Prospectus, including the fact that McCourt was never considered the front runner to begin with:

The Los Angeles Dodgers stated, “The Dodgers emerge from the Chapter 11 reorganization process having achieved its objective of maximizing the value of the Dodgers through a successful Plan of Reorganization, under which all claims will be paid. The Dodgers move forward with confidence - in a strong financial position; as a premier Major League Baseball franchise; and as an integral part of and representative of the Los Angeles community.”

Three-thousand and fifteen days. Or, eight years, three months, and two days. That’s how long Frank McCourt owned the Los Angeles Dodgers. His tenure now over, $1.588 billion cash has been moved out of escrow from Guggenheim Baseball Management, making the sale final. As part of the sale, GBM will assume $412 million in debt that the Dodgers have incurred under McCourt’s watch, and with it, the new owners get the Dodgers, Dodger Stadium, and the land upon which Dodger Stadium is built. In a separate deal for $150 million, GMB will partner with McCourt to develop the land around Dodger Stadium. But while McCourt is a partner, he does not get the revenue from the parking lots; that will go to GMB.

The deal had been set to close on Monday because McCourt owes his former wife, Jamie, $131 million as part of his divorce settlement.  McCourt had wisely set up “bridge funding” for $140 million in case the deal did not occur on time. Due to the complexities of the deal—one that has been called the most complex sports franchise sale ever—an agreement was not reached until Tuesday. After settling with his former wife, Jamie, Frank McCourt will walk away with $1.457 billion outside of the $150 million land sale. They say you should never reward bad behavior, but apparently, McCourt didn’t get that memo.

Read the rest of the story. It’s one that I’m particularly proud of.


Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He writes for Baseball Prospectus and is a contributor to Forbes SportsMoney blog.. He is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network (select his name in the dropdown provided).

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