Major League Baseball

Dodgers sale may be record

Published Nov. 2, 2011 1:00 a.m. ET

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A deal between Major League Baseball and embattled Los Angeles Dodgers owner Frank McCourt to auction the storied franchise to the highest bidder sets up what will likely be a record sale for a US sports team.

The team is expected to fetch $1.2 billion to $1.5 billion, according to several sports-finance experts. The auction agreement, reached late Tuesday night, comes after months of acrimony between the two parties, as McCourt struggled to hold on to his cash-strapped team and MLB commissioner Bud Selig pulled nearly every lever within his powers to force him to sell it.

But as the sides prepared for a trial that had been set to begin in US Bankruptcy Court Oct. 31, settlement talks accelerated, allowing both sides to avoid both the expense and nastiness of a court fight in which Selig was scheduled to testify. The US Bankruptcy Court in Delaware will oversee a sale process led by Blackstone Group, ensuring the team will go to the highest viable bidder.

As word of the deal spread, potential bidders began to prepare in earnest for the chance to buy the rarest of properties: a legendary sports team that is profitable, plays in one of the country's top media markets, provides priceless cachet for its owners, and, most importantly, offers the team's next owner the chance to make a windfall by launching or becoming a partner in a lucrative regional sports network. The team's current media-rights deal expires after the 2013 season.

"When a trophy property becomes available, the first thing a potential owner thinks about is the fantasy of owning something like this, but the second is the media opportunity that's available, and that's what's going to be driving the frenzy in this case," said Lee Berke, a sports-industry media consultant.

An array of business, finance and media titans have already expressed interest in buying the team or becoming a part of an ownership group. Many have deep connections to the Southern California region.

They include former sports agent Dennis Gilbert, who flirted with a bid for the Texas Rangers before backing out; magnate Ron Burkle, a co-owner of the National Hockey League's Pittsburgh Penguins; the developer and philanthropist Eli Broad, who bid for the Dodgers in 2004; Dallas Mavericks owner Mark Cuban, who bid for baseball's Texas Rangers and Chicago Cubs; cable-industry veteran Leo Hindery and financier Marc Utay, who tried to buy the Cubs in 2008; Tom Schieffer, a former president of the Texas Rangers who ran the Dodgers earlier this year after MLB seized the team; and Peter Guber, the film producer and founder of Mandalay Entertainment, an owner of the NBA's Golden State Warriors and numerous minor league baseball teams.

"It is one of the best brands in all of sports, and like many people, I'd be very proud to be a part of its future," Burkle said.

The other potential investors were unavailable or declined to comment on their personal interest in the team.

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