Stupid Deal of the Decade? Magic Johnson Group Buys LA Dodgers for $2 billion…

There are good investments…and bad.  Paying out $2 billion for a Sports Franchise in a sport which is on the way down – is definitely one of those “bad” investment ideas. Seems to me $2 b could be better spent buying a NFL Franchise (Several of which are actually worth $2 B or more) or investing in Mixed Martial Arts (MMA), which is about the fastest growing professional sport out there right now. The list of the Top 50 Professional Sports Franchises in the World looks like this.

So… Why but the Dodgers?

I hope Magic hasn’t lost his business “magic”!

Group Led by Magic Johnson Wins Auction to Buy Dodgers for $2.15 Billion

In a quick, dramatic end to the year-long financial crisis of the Los Angeles Dodgers, the team’s owner, Frank McCourt, agreed to sell the team Tuesday night for $2.15 billion to a group headed by Magic Johnson, the Lakers’ Hall of Famer.

The Johnson group’s deal, financed largely by Guggenheim Partners, a Chicago-based financial services firm, includes $2 billion for the team (minus $412 million in debt) and $150 million to create a joint venture with McCourt on the parking lots and land surrounding Dodger Stadium. The deal is valued at $2.3 billion.

If the all-cash deal is approved by the judge overseeing the Dodgers’ bankruptcy, the price will be the most ever paid for a professional sports team.

The most ever paid for a franchise is at least $1.4 billion for Manchester United. The Miami Dolphins were sold for $1.15 billion and the Chicago Cubs were acquired for $845 million. McCourt, who bought the team in 2004 for $421 million, had resisted selling the real estate, preferring to rent the lots for $14 million a year to the team’s new owner. But the Johnson group suggested the joint venture on the land, said a person briefed on the sale but not authorized to speak publicly.

The deal will let McCourt repay a $150 million loan made to the team last year by Major League Baseball and his $130 million divorce settlement to his ex-wife, Jamie.

The winning bid defeated one by Stan Kroenke, the billionaire owner of the St. Louis Rams, Colorado Avalanche and Denver Nuggets, and a second from two other billionaires: Steven A. Cohen, the hedge-fund manager who recently bought a small share of the Mets, and Patrick Soon-Shiong, who made his money in pharmaceuticals.

The final steps in the process came rapidly. McCourt’s investment banker, Blackstone, asked each bidder to raise their offers Monday night.

Baseball owners approved all three bidders Tuesday afternoon and later in the evening McCourt selected on the Johnson group. An announcement was made shortly after 11 p.m. eastern.

In addition to Johnson and Guggenheim Partners, the winning group includes Stan Kasten, the former president of the Atlanta Braves and Washington Nationals, and Peter Guber, the film producer and head of Mandalay Entertainment.

The agreement to sell the Dodgers to Johnson’s group appears to end an extraordinary year for the team. It filed for bankruptcy last June after Selig blocked a new, long-term billion-dollar cable TV deal between the Dodgers and Fox Sports. Selig had sharply criticized McCourt’s management of the team — in particular his use of team money for his and his ex-wife’s personal use — and installed a monitor to oversee the team’s operations. McCourt called that a hostile takeover.

Bad Doggie! Baaaaaad Doggie!

Good reason to own a cat!

Dog Runs Over Owner With Truck

Lesson learned the hard way: Never trust canine drivers.

Tassey's Mug Shot

A Florida man was taken to the hospital yesterday after his dog ran him over with the man’s own pickup truck. Christopher Bishop, 43, made the mistake of putting his Ford F-150 in neutral as he got out to check for oil leaks, the St. Petersburg Times reports. As he checked under the front, his bulldog Tassey leapt into the front seat and knocked the truck into gear.

The truck rolled over the left side of Bishop’s body. He managed to get up and get into the truck to stop it. After several hours of intense pain, he called an ambulance and was taken from his home to a nearby hospital with non-life-threatening injuries. He said he’d waited so long because he doesn’t like doctors.

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