On the previous thread, I was asked this question:
Doesn’t McCourt get to choose the winner? If all 3 bidders are approved by MLB, he doesn’t necessarily have to choose the highest one. I believe he might be in cahoots with that Rams owner. Am I just paranoid or are my fears justified?
I thought today would be a good day to answer that question. Additionally, Bill Shaikin of THE LA TIMES has an excellent Q & A on this very subject today.
My answer is that you are not paranoid, but there aren’t too many scenarios whereby Frank McCourt is going to walk away from a higher offer and leave money on the table.
- I could see him possibly taking a $1.4 billion offer from someone like Magic’s group if Cohen offered $1.6 billion but insisted on the Land (I don’t call them “parking Lots” because they are worth a whole lot more for development than they are for parking).
- There is speculation that Stan Kroenke might buy the Dodgers and allow McCourt to build a stadium for the Rams, but the Rams moving back to LA is a big hurdle and an even bigger hurdle is that the NFL wants nothing to do with Frank McCourt, so that doesn’t seem viable to me. I doubt that any professional sports league wants any connection with Frank McCourt.
- Anything is possible, but it seems likely that Frank will take the money from the highest bidder. In the end, I believe Cohen and Soon-Shiong will prevail because they can afford to overpay and develop the land which could become worth well in excess of $600,000,000… maybe more.
- The way it looks now is that Cohen/Soon-Shiong will prevail at about $1.7 to $1.9 billion, with the land included. It makes no sense to have a landlord for that kind of property.
- We should know by April Fools’ Day. HOW FITTING!