OT: Dodgers sold for 2 billion dollars

[Fourier]

Originally Posted by hatterson

As far as I understand it, the reason the Dodgers are worth so much is because they're open to new TV broadcasting rights, they're not locked into a contract.

Estimates I've seen place a TV deal in the range of $2-$4 billion for a 25 year extension

Or possibly their own network.

[Morris Wanchuk]

Originally Posted by Moo

Safe to say there will be a ripple effect through North American sports franchise values, including Forbes' top-ranked franchise, the Dallas Cowboys.

http://www.dallasnews.com/sports/dal...81-billion.ece



In fact, on the world stage, the 2011 list last summer had these:

http://www.forbes.com/sites/kurtbade...-sports-teams/

ManU is $1.86B for the top spot, ahead of the Cowboys and third-place New York Yankees at $1.7B.

The Dodgers were 38th at $800M. (The sale is for 2.5 times that amount!)

Top NBA team? New York Knicks at 47th spot, $655M. Lakers next at48th, $643M.

No NHL teams in the top 50. The below link shows the Maple Leafs as the top NHL team with $521M.

http://www.forbes.com/nhl-valuations/

One thing that always confused me about these rankings is these franchise values is that many owners own different entities (club, stadium, broadcasts) in different corporations.

Take the Bruins for example. They are owned by the Boston Professional Hockey Association, Inc. The arena and associated parking and building lots, as well as the concessions are owned by Delaware North, and the 20% share in NESN is owned by Jacobs himself. So yea, the value of the Boston Bruins franchise might be along the lines of the Forbes estimate, but when you sell along with it the building and network, the worth goes sky high.

[LadyStanley]

http://www.tsn.ca/mlb/story/?id=392457

The Los Angeles Dodgers filed a [Chapter 11 bankruptcy] revised reorganization plan on Friday and said they are on track to exit bankruptcy as planned by April 30.
...
The $2 billion purchase price includes about $412 million of existing debt financing that will remain in place. The balance, just under $1.6 billion, will be paid in cash from equity financing by the owners and affiliates of Guggenheim, which has provided a cash deposit of about $159 million.
...
The April 30 date was included in a settlement that resolved a dispute between the Dodgers and Major League Baseball over the team's bankruptcy. It coincides with the deadline for current owner Frank McCourt to pay $131 million to his ex-wife, Jamie, as part of their divorce settlement.

The judge presiding over the bankruptcy case has scheduled a hearing next Friday to consider whether to confirm the plan.

[LadyStanley]

EricFisherSBJ tweeting from bankruptcy court this afternoon

2 hour "rain delay" for hearing. But may have had some action:

EricFisherSBJ 1:00pm via web New docs filed in #Dodgers case indicate that land disclosure issue re parking lots resolved during recess today.

[LadyStanley]

http://www.tsn.ca/mlb/story/?id=393095

Wire story on hearing; judge approved sale.

Friday's hearing helped resolve a number of lingering issues ahead of the team's sale. Fox, the team's current broadcaster, had wanted written assurance that competitor Time Warner Cable was not contributing funds being used for the purchase. Lawyers for the Dodgers agreed to do that.

Friday's hearing dragged into the evening, however, as lawyers for the Dodgers and Major League Baseball sparred over the information being given to the league about the plan. A lawyer for Major League Baseball said the league has issues with the plan and is owed more information. A Dodgers lawyer said the team has met all the criteria to have the plan confirmed, and the judge agreed.

[LadyStanley]

http://www.mercedsunstar.com/2012/05...finalized.html

Sale finalized

[Thomas L]

Originally Posted by wpgsilver

Seems like they overpaid to me, but who knows what the other offers were. If the Dodgers turn into contenders, the owners will have no trouble making serious coin though.

Maybe they received a killer stadium management fee?