Most Successful Baseball Owner Ever
March 28, 2012 by staff
Most Successful Baseball Owner Ever, If Frank McCourt’s sale of the Los Angeles Dodgers to a group with Magic Johnson as the front-man holds up, he will become the most financially successful owner of a team in Major League Baseball history. The sale must still be approved by a federal bankruptcy court.
McCourt bought the team, Dodger Stadium and about 260 acres of surrounding real estate from News Corp. for an enterprise value of $371 million in February, 2004. In that deal, McCourt paid $330 million for the team, Dodger Stadium and the land under the stadium. He also paid an additional $91 million for 260 acres of land around the stadium, but that purchase included $50 million of cash, so the net cost was $41 million.
Frank McCourt (Getty Images North America via @daylife)Johnson’s group is paying $2 billion for the Dodgers and the stadium a (compared to the $330 million McCourt paid News Corp.), yielding McCourt an annualized gain of 25%. Affiliates of Johnson’s group will also be forming a joint venture with McCourt for the 260 acres of real estate (Chavez Ravine).
In this deal McCourt is kicking in the land and while the affiliates will pay $150 million, valuing the real estate at $300 million. The $2.3 billion valuation for the team, stadium and land (versus the $371 million he paid) gives McCourt a 26% annualized return.
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