LOS ANGELES -- It's the Magic number of all Magic numbers --$2 billion.
As in Earvin "Magic" Johnson, the former Laker who is the most beloved athlete in Los Angeles history. His group bought the Dodgers from McCourt for a price of $2 billion. It's the largest price ever paid for an American sports franchise. The previous high was the nearly 1.1 billion dollars spent by Stephen Ross to purchase the Miami Dolphins in 2008.
"It's absolutely a done deal," said a member of Johnson's organization, who requested that his name not be used.
Mark Walter, the CEO of Guggenheim Partners, will be the controlling partner, as Guggenheim is putting up the majority of the money. Johnson will be the face of the franchise, while Stan Kasten, former president and GM of the Atlanta Braves, Atlanta Hawks and Washington Nationals likely will run the baseball operations. Calls were placed to the Guggenheim Baseball Management group, but had yet to be returned as this story was being written.
The Dodgers issued the following quotes in a statement confirming the transaction:
Frank McCourt stated, "This agreement with Guggenheim reflects both the strength and future potential of the Los Angeles Dodgers, and assures that the Dodgers will have new ownership with deep local roots, which bodes well for the Dodgers, its fans and the Los Angeles community. We are delighted that this group will continue the important work we have started in the community, fulfilling our commitment to building 50 Dream Fields and helping with the effort to cure cancer."
Earvin "Magic" Johnson stated, "I am thrilled to be part of the historic Dodger franchise and intend to build on the fantastic foundation laid by Frank McCourt as we drive the Dodgers back to the front page of the sports section in our wonderful community of Los Angeles."
Lakers owner Jerry Buss congratulated Magic on Tuesday: "Magic Johnson is probably the most beloved sports figure in Los Angeles history. In addition to being a phenomenal success on the court in leading the Lakers to five NBA Championships, he has been a success in everything else he's become involved with, most notably his spectacular business career and also his educational campaign on behalf of HIV awareness. I'd like to congratulate Magic and his partners on their acquisition of the Dodgers and wish them the best of luck."
It was also announced that the parking lot controversy was settled when McCourt agreed to become a partner in a group of investors that will buy back the real estate for $150 million. The parking lot investment group is described as "Mr. McCourt and certain affiliates of the purchasers."
McCourt bought the Dodgers prior to the 2004 season and paid approximately $421 million for the team, with a Boston-area parking lot used as collateral to finance most of the purchase.
Under McCourt, the Dodgers made the playoffs four times—2004, 2006, 2008 and 2009—losing in the NLCS both in '08 and '09. And the team began to make much more money, the value of the Dodgers rising to more than $700 million in just a few years. But when McCourt and his wife Jamie filed for divorce in 2009, documents showed that most of the money made was spent by the McCourts on an extravagant lifestyle. The financial situation became so dire that Major League Baseball stepped in and took away day-to-day operational control from the McCourts.
Financial experts have estimated that after McCourt pays his creditors—including a $131 million settlement with ex-wife Jamie—he will walk away with nearly 900 million pre-tax dollars.
With McCourt on his way out, the Magic Man is now in charge of taking their team back to the elite level it had occupied since the 1940's.
Johnson is one of the most well-liked athletes in sports history, especially in Los Angeles where his popularity has reached near mythical proportions. He led the Lakers to five NBA championships during the Showtime years, before being forced to retire in 1991 after he contracted HIV. Since then he has stayed visible in the community, even considering a run for mayor a few years ago.
He was known for being unstoppable when the game was on the line, always being there when the Lakers needed him most.
Now Dodgers fans know how Laker fans felt for all those years.
