Magic Johnson crew pays $2 billion in LA Dodgers sale
Magic Johnson and his associates at Guggenheim Partners have bought the Los Angeles Dodgers from Frank McCourt for $2.15 billion.
The deal is the largest of its kind and is seen by many as the first step in bringing the bankrupt baseball team back into its fans’ good graces. However, some analysts aren’t so sure. The half-century old Dodger Stadium is in disrepair, and renovations are estimated to cost as much as $200 million. In order to actually own the land on which the stadium is built, some members of the new ownership will partner with McCourt and shell out an additional $150 million.
Staying involved with McCourt might not sit well with the Dodgers faithful, as McCourt has been accused of looting the team to for personal interests. McCourt ran up an estimated $579 million in debt and reportedly used team money to fund his and his wife Jamie’s real estate ventures.
The prospect of a new TV broadcasting agreement with a regional sports network is said to be the catalyst of the landmark purchase.