There are many things one could buy with $2 billion dollars, two billion items from the dollar menu at McDonald's for instance. You could also buy the Los Angeles Dodgers, which is exactly what the group led by Magic Johnson and Stan Kasten will do, according to a report from the Wall Street Journal.
Be sure to read Douglas' take on the Dodgers deal too.
Many had speculated that the group led by Magic and Kasten, officially called Guggenheim Baseball Partners, were the favorites. Nobody thought they were the favorites because they would pay $2 billion. They had the highest bid all along at $1.6 billion according to reports, but the local connection was always thought to be the key. Now, they had the money too.
Later in the process, the group added Peter Guber and some other heavy hitters to the lineup. Guber runs Mandalay Sports Entertainment, which owns a number of sports properties and the television, movie and music production to back them. The Dodgers TV rights are worth billions, now they have the know-how to build a network and synergy with a ton of other entertainment properties. Two billion might be a bargain when it's all said and done.
One thing to remember, MLB will have to bless this deal. If the $2 billion offer looks significantly different than the one MLB saw, they can move for changes. It then has to pass muster with the bankruptcy court judge. The deal is expected to go through.
There is another interesting catch to the deal. It is being reported that McCourt and "certain affiliates of the purchasers" will buy back the parking lots for $150 million.
And as for why this matters at TST, a site focused on the St. Louis Rams, well, it means Rams owner Stan Kroenke is out of the mix for the Dodgers. Which should surely end some of the fears about relocation that his interest in the Dodgers stoked. There is still a long way to go in the Edward Jones Dome lease process; the team's proposal is due May 1.
Another note about LA football, Johnson is part of the ownership group trying to bring the NFL to the imagined AEG project in Downtown LA. It will be interesting to see how things proceed with Farmers Field with this happening in the backdrop.