Categorized | Mark Timmons

As We Await Frank’s Final Answer…

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!

 

About Mark Timmons

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

18 Responses to “As We Await Frank’s Final Answer…”

  1. DRomo says:

    Well written Mark!

    I actually think you are dead on here. Frank will not leave money on the table. And if Cohen’s group in fact “over pays” it will be well worth it because of the land. When it is finally developed it will pay for itself.

  2. Bobby says:

    yeah, I think you’re dead on as well Mark. Whatever the “true value” is, will be exceeded by the Cohen group to purchase the parking lots/land, just to avoid the McCourt headache and shoo him out of town.

  3. Ken says:

    Dodger catchers should be required to watch film of Bills every day for 1 hour because heaven knows that neither Bills nor Honeybutt can correct Bill’s pitching motion during a game.

    Padres are for sale and have a new TC contract!

    McCourt will try to keep an option to participate as a silent partner in the future Dodger real estate development.

    • Jae says:

      I think Billingsley should be fitted with a shocking dog collar that Honeycutt can deploy when Chad gets out of sync.

  4. jerry says:

    honeycutt couldnt help broxton .so why could he help bills. i think we need a new pitching coach

  5. AnewBlueDay says:

    It will be interesting to see what Donnie boy does with the starting line-up the first week of the season.

    Will Uribe start, or will he sit for a hitter that is doing more . . .

    Will Billingsley be the #2 pitcher on this team, or will another arm take that slot . . .

    Who will get the most catching starts . . .

    Who will get the most starts in LF . . .

    C-Bills went 5 innings today giving up 11 hits and 2 walks. The pen the rest of the way gave up only 2 more. And Elbert was there and 3 up and 3 down on Ks. Sands finally got a key hit. Maybe his hard work is paying off.

  6. RogerCraig says:

    I believe that this is Chad Billingsley’s last chance in LA as a starter. If he can’t pull it all together the first half of this season, he could find himself in the bullpen and I happen to think he might be a very good closer.

    He can throw 98+ if he only has to throw an inning. Starting may not be his cup of tea — there were others: Eckersley, Fingers, Smith, Sutter. No shame – just do not keep on doing the same thing and think you will get a different result.

    Get rid of Honeycutt? Yeah, he sure screwed up that Kershaw kid didn’t he? If the Dodgers got rid of Honey, there are about 30 other teams who would love to have him.

    Honey isn’t the problem. Broxton was too low key and it appears to me that Billingsley just loses focus at times. He might flourish in the bullpen. That is my 2 cents.

  7. Brooklyn Dodger says:

    I believe it was 2007 when Grady Little (remember him?) had Bills coming out of the pen for while. I remember him being lights out, and lighting up the gun at 97. I still think he could be an effective starter, but it just might be that he’s best suited for the pen. Of course, this is 2012 and that was 2007. Things change over time, but Billingsley coming out of the pen could be interesting.

  8. DRomo says:

    Billingsley lacks “Testiclar Fortitude”. If he could only believe in himself he would be lights out. It is shocking to me that a guy like him hasn’t gotten it by now. I wish his agent Dave Stewart would rub off on him. Stew was a mean SOB on the mound. Bills could use soe of that swagger!

  9. Mike Dixon says:

    Looks like Magic’s group is the new owner…..I like this….

  10. Mike Dixon says:

    Says they were sold for 2 Billion….Damn….Mark was right about the price…never thought they would fetch that much..McCourt is brilliant…..

  11. Bobby says:

    Welcome Earvin Magic Owner!!!!

  12. Bill Russell says:

    Parking lots not included in the sale?

  13. Brooklyn Dodger says:

    Sounds like the Dodgers and all the land were acquired for $2 billion, and that that was followed by a joint venture between affiliates of Magic Johnson’s group and McCourt to purchase the land for $150 million. Does that land include just the parking lots or does it also include Dodger Stadium? I’m sure we’ll be getting more details in the next few days and maybe weeks.

    Glad to see this done, and now just hope that the devil isn’t in the details.

  14. Ken says:

    Treanor looks like he is in good shape this spring. He must work out a lot with Misty May.

    In hindsight we will all know that Magic’s group overpaid for the Dodgers unless the Dodgers (1) receive at least a $4 billion TV contract within two years, or (2) there is enough money left in the insurance companies to create a Cable TV Network that provides profits greater than $4 billion over the next 20 years.

    Is Peter Guber the guy to run the Cable Channel?

    If the Debt used to acquire the team is around $1 billion, then the team must earn $125 million per year in EBITDA which they can not do until 2014. They made a whooping $1.2 million last year. Don’t look for any major player signings unless another investor joins Magic’s group. Having worked with insurance commisioners I suspect that there is one planning an audit of Guggenhiem in the near future. Prudent Investor Rule?

    Did any of you really think that Frank would be completely gone? Magic to develop the Cable TV Channel is actually good news for the Dodgers. So what if Frank develops the land.

    However, most sale/leasebacks are a sign of illiquidity. Therefore selling the land to Frank is a potential sign of an undercapitalized company. I will smile when I see all of the financial details.

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