Johnson/Kasten Group Agrees To Purchase Dodgers

WEDNESDAY, 7:40am: The Dodgers sold for $2.15 billion, the world record price for a sports franchise, Bill Shaikin of the LA Times reports (Twitter links). The Cubs had set the previous record for an MLB team with a sale price of $845MM. The new deal allows the incoming ownership group to control parking lots for games, but Frank McCourt and the new group will jointly pursue any development of the lots.

TUESDAY, 11:48pm: The Magic/Kasten/Guggenheim Partners group will in fact control the Dodger Stadium parking lots, reports Bill Shaikin of The Los Angeles Times (Twitter links). There was no auction between the three bidding groups; McCourt struck a deal with Walter after the owners vote today.

10:01pm: The Dodgers have reached an agreement to be sold to the bidding group led by Magic Johnson, Stan Kasten, and Guggenheim Partners according to MLB.com's Ken Gurnick. Dennis Berman of The Wall Street Journal reports (on Twitter) that they will pay $2 billion for the team, by far the most ever paid for a North American sports franchise. The Dodgers have confirmed the sale.

"I am thrilled to be part of the historic Dodger franchise and intend to build on the fantastic foundation as we drive the Dodgers back to the front page of the sports section in our wonderful community of Los Angeles," said Johnson in a statement.

“This transaction underscores the Debtors’ objective to maximize the value of their estate and to emerge from Chapter 11 under a successful Plan of Reorganization, under which all creditors are paid in full," said the team in a statement.

Former owner Frank McCourt purchased the Dodgers from NewsCorp for $430MM in 2004. He will form a joint venture with Guggenheim Partners to acquire the Chavez Ravine property for an additional $150MM according to ESPN's Molly Knight (Twitter links), indicating that the Dodger Stadium parking lots were not included in the sale. McCourt's debt has been estimated at $1.1 billion, so he'll still turn a significant profit with the sale.

The Dodgers are getting the best of both worlds with the new ownership group. Magic brings unmatched local starpower while Kasten provides decades of baseball experience. He has previously served as the president of the Braves and Nationals. Mark Walter, CEO of Guggenheim Partners, will become controlling owner of the team according to Knight (on Twitter).

The Johnson/Kasten group was competing with Stan Kroenke and a group led by Steve Cohen and Patrick Soon-Shiong. All three bidders were approved by the other MLB owners just today.


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75 Comments on "Johnson/Kasten Group Agrees To Purchase Dodgers"


East Coast Bias
3 years 5 months ago

oh snap!

Encarnacion's Parrot
3 years 5 months ago

And there was much rejoicing..

*yaaaaaaaaay*

Monty Python works on so many levels.

CaseyBlakeDeWitt
3 years 5 months ago

Yessssssssssss

chico65
3 years 5 months ago

Now they need some magic on the field

nathan118
3 years 5 months ago

Parking lots included?

Snoochies8
3 years 5 months ago

apparently

3 years 5 months ago

 “the Dodger Stadium parking lots were not included in the sale.”

Snoochies8
3 years 5 months ago


The new deal allows the incoming ownership group to control parking lots for games.”

Snoochies8
3 years 5 months ago

woohoo! it’s about time! and i think it’s also even more awesome since magic johnson is not just a legend, but an LA legend at that. absolutely awesome, congrats magic and kasten

DT Flush234
3 years 5 months ago

Finally.

Lastings
3 years 5 months ago

Just what the Dodgers needed to start winning again; a little bit of Magic…

vtadave
3 years 5 months ago

$2 billion according to WSJ.

CaseyBlakeDeWitt
3 years 5 months ago

Wow, that’s a ton. Where is he getting the money from?

Encarnacion's Parrot
3 years 5 months ago

Sure hope not from Benard Madoff.

3 years 5 months ago

 Tickets?

ultimate913
3 years 5 months ago

2 billion? When Yankees are supposedly worth 1.8? What the….

DrToast
3 years 5 months ago

The Yankees don’t own the land. That’s a big part of the Dodger’s wealth.

3 years 5 months ago

If the Yankees were sold it would be for well over 2 billion.

Taskmaster75
3 years 5 months ago

When you’re buying a company, you don’t pay for necessarily what it’s worth. In most cases, for corporations in business, you would sell it for 25-35% more, based on growth potential and other factors.

3 years 5 months ago

yayy..no more McCheese!
 

dgrfns
3 years 5 months ago

parking lots have to be included for for 2B!

rpoabr
3 years 5 months ago

And people wonder why the Angels made the splash with Pujols… Magic will put the Dodgers back on the map, if they can afford 2B for the team, they aught to be able to sign some players!

vtadave
3 years 5 months ago

“Mr. McCourt and certain affiliates of the purchasers will also be forming a joint venture, which will acquire the Chavez Ravine property for an additional $150 million.”

Magic, say it isn’t so???

bleedDODGERblue
3 years 5 months ago

That’s what we need, a sportsminded Los Angelian running our team

Gumby65
3 years 5 months ago

 Angeleno imported from East Lansing, but not being picky 😀

bleedDODGERblue
3 years 5 months ago

Beats a crook imported from Boston

johnsilver
3 years 5 months ago

Just curious how much in debt CA and especially LA county is as compared to Boston and the state of MA.? So much for “crooks” imported from Boston…

East Coast Bias
3 years 5 months ago

He was talking about McCourt… It has nothing to do with state budgets dude.

bleedDODGERblue
3 years 5 months ago

Damn.. the comment I wanted to put needs to be approved..

HummBaby
3 years 5 months ago

There go my hopes for contraction.

Gumby65
3 years 5 months ago

 …and a finish above 3rd place.

Snoochies8
3 years 5 months ago

after this year

Gumby65
3 years 5 months ago

Nah, S.I.  has Gi**ts  picked to win West this year which is totally laughable; their SP is off the charts good 1-4 but with their offensive offense, I don’t see them taking DBacks or Dodgers (even in their present state). To Clarify, I was alluding to Hummbaby’s team’s hopes…

Snoochies8
3 years 5 months ago

ah i gotcha. yeah i don’t see the giants winning the west this year either, especially if bauer/skaggs perform up to expectations and push for a spot midyear. a lot needs to go right for the dodgers to come in second though.

55saveslives
3 years 5 months ago

 Dodgers weren’t better than a Giants team that led the league in DL stints. How are they magically going to be better than a healthy Giants?

toptimrubies
3 years 5 months ago

This isn’t a serious response but you set yourself up for it–

Q. “How are they magically going to be better than a healthy Giants?”

A. MAGIC Johnson.

Snoochies8
3 years 5 months ago

ooooh clap clap clap clap clap

Lunchbox45
3 years 5 months ago

+1000

candlestick22
3 years 5 months ago

NL West will come down to Giants / D-backs. Dodgers will be battling for 3rd at best again, but 4th/5th is more realistic.

bleedDODGERblue
3 years 5 months ago

We’ll see how this holds up AFTER this year

GoDoyers
3 years 5 months ago

Time to rebuild that depleted farm system, get our scouts back in the DR, PR, HK, and everything else in between.  Good riddance to the 2nd worst owner in LA next to Donald Sterling.

triple_play_baseball
3 years 5 months ago

I am so happy

Gumby65
3 years 5 months ago

All this good info rolling out, but don’t forget the architect Stan Kasten; God he made Ted Turner look good…..

danbraun
3 years 5 months ago

Great article in Fortune magazine this month about local cable tv contracts with baseball teams driving the franchise values way up. Dodgers sale price big proof of that…

Madman2TX
3 years 5 months ago

Man…if only MLB had taken my third party, out of state, post-dated check for $2.1 billion, I could be owner of the Dodgers instead of Magic. I was robbed!!