Magic Johnson led consortium to buy Los Angeles Dodgers for record $2 billion
28 Mar 2012
A consortium led by basketball legend Magic Johnson yesterday agreed to buy the bankrupt Los Angeles Dodgers baseball team from Frank McCourt for a record $2 billion.
The purchase price is the highest amount ever paid for a North American sports franchise, topping the $1.1-billion paid by Stephen Ross for the National Football League's Miami Dolphins in 2009.
The Dodgers, which have won 6 World Series titles and 21 National League pennants, entered bankruptcy in June 2011 when they could not pay player salaries or bills.
The sports regulator refused to approve a $3-billion agreement between Fox sports channel and the Dodgers to extend their television broadcast rights.
The regulator feared that owner McCourt would use a part of the money to fund his messy divorce.
Based on a settlement with the regulator and overseen by the bankruptcy court, McCourt had until 1 April to identify a winning bidder. The deal must close by 30 April, the same day McCourt must pay his former wife, Jamie McCourt, a $131 million divorce settlement.
In an auction run by New York-based investment advisory firm Blackstone Advisory Partners, three bidders entered the final round and Frank McCourt was given the choice to accept the highest and best offer.