Categorized | Mark Timmons

$1.5 Billion is the Magic Number

There is a flurry of activity behind the scenes right now involving bidders for the Dodgers.  I know there are some well-healed bidders, but I’m not sure if anyone will pay the $1.5 billion that the Dodgers will fetch, including the parking lots.  Not only will that be the most ever paid for a baseball team – IT WILL BE NEARLY DOUBLE the price of what the Ricketts family paid for the Cubbies.  I think you could see FOX or Time Warner allying themselves with certain investment groups in order to raise the money.  Neither company wants to run the Dodgers, but if either is part of the group that buys the Dodgers, they automatically get the TV deal.

On the other hand, if someone can pony up $1.5 Bil on their own and wait until 2014, they can start their own TV network.  If you pay $1.5 Bil for the Dodgers you better be ready to sink another $500 mil into the stadium and shops and development around Dodger Stadium (like McCourts’ Dream, which was a solid idea – he just didn’t have the money to pull it off).  If the right buyer gets the team, they could ultimately have over $2 Billion invested in the team and development around Dodger Stadium, but with a TV network and development of a “destination” around Dodger Stadium, it could be a cash cow.

… or maybe they will just build a new stadium downtown and develop the Ravine…

It is going to be very, very interesting!

About Mark Timmons

When you see the invisible, you can do the impossible!

8 Responses to “$1.5 Billion is the Magic Number”

  1. RogerCraig says:

    I have heard anything from $1 billion all the way up to $2 billion. I guess in the middle is safe.

  2. Anonymous says:

    Do you really think both cable networks will bid? Is that really possible?

  3. Dave says:

    Is anyone else here intrigued with Josh Macciano? Even if he doesn’t pass the Selig/owners vetting process, what an interesting guy. Mason & Ireland spoke about him again today and interviewed the ESPN writer whose article linked below is on ESPNLA.COM.

  4. Dave says:

    Typo Macciello not Macciano (I went to school years ago with a Macciano, thus the typo). OOPS

  5. Ken says:

    Every appraiser knows this one foundational principle from USPAP “Price does not equal Value”. The value is not in the Dodger franchise. It is in the intangible assets, the TV rights, the potential real estate development, and the ludicrous appreciation that occurs when an egotist wants to own a major league franchise like the LA Dodgers. Who would pay $1.5 billion for an investment that returns merely $30 million a year? You can get that return when investing in a 10 year US treasury obligation. Cough cough

    • Mark_Timmons says:

      If Frankie gets his price, he\’s earned about $200 mil a year on it, counting what he took and appreciation. That\’s not too bad!

  6. jason says:

    How much will Frank make when all is said and done? Should be zero given the fact that he ran this franchise into the ground…

  7. Jae says:

    As much as Frank has been reviled, I think the Dodgers are in better shape than when the last two owners sold.


Leave a Reply

Mandatory Daily Dodger Reading