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Magic Johnson’s group agrees to buy Dodgers for record price of $2 billion

Mar 27, 2012, 11:17 PM EDT

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UPDATE: Here’s the text from the press release, officially announcing word of the agreement between the two sides:

The Los Angeles Dodgers and Frank McCourt today announced an agreement under which Guggenheim Baseball Management LLC (“GBM”) will acquire the Los Angeles Dodgers for $2 billion upon completion of the closing process.  The purchasing group includes Mark R. Walter as its controlling partner, as well as Earvin “Magic” Johnson, Peter Guber, Stan Kasten, Bobby Patton and Todd Boehly.  Mr. McCourt and certain affiliates of the purchasers will also be forming a joint venture, which will acquire the Chavez Ravine property for an additional $150 million.

The Los Angeles Dodgers stated, “This transaction underscores the Debtors’ objective to maximize the value of their estate and to emerge from Chapter 11 under a successful Plan of Reorganization, under which all creditors are paid in full.”

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.”

11:08 PM: Whoa. Dennis K. Berman of the Wall Street Journal reports that Johnson’s group have agreed to purchase the Dodgers for $2 billion. One would think this offer would be good enough to include the parking lots, right?

The good news is that Dodgers fans will have the most popular sports figure in Los Angeles as part of the new ownership group, but McCourt is going to walk away from this thing filthy, stinkin’ rich.

11:06 PM: It’s Showtime.

Details are scarce at the moment, but Ken Gurnick of MLB.com reports that the Dodgers have reached an agreement to be sold to the group led by Magic Johnson and longtime MLB and NBA executive Stan Kasten.

MLB owners had approved the groups led by billionaire hedge-fund manager Steve Cohen and St. Louis Rams owner Stan Kroenke, but outgoing owner Frank McCourt has apparently identified Johnson’s group as the winning bidder. No word yet on the exact terms, but most estimates had the sale price to exceed $1.5 billion, which would establish a new record for a North American sports franchise.

  1. notsofast10 - Mar 27, 2012 at 11:15 PM

    YESSSSSSS! Lets go Magic!!!!!

  2. cur68 - Mar 27, 2012 at 11:17 PM

    Oh, please let this be true. No more Frank McCourt, please? If it’s true then he really is MAGIC Johnson.

    • chuckj1234 - Mar 28, 2012 at 12:00 AM

      The only problem I have with this good news is Mcourt is now filthy rich. Does Jamie get any of this?

      • xavier46 - Mar 28, 2012 at 1:30 AM

        $131 million, which all of a sudden seems like a screw job

      • cur68 - Mar 28, 2012 at 1:33 AM

        I don’t care who gets what, folks, just so long as McCourt has nothing further to do with the Dodgers daily operations. He’ll be allowed to hang on as part of the “Development Group” but he’ll be eventually bought out once the rest of the group has what they really want: The Team. So I fervently hope, at any rate.

    • gtizzo - Mar 28, 2012 at 12:29 PM

      Yeah Frank McCourt is laughing all the way to the bank. Magic massively over paid, shows why sports athletes are always broke they can’t value anything properly.

      • primesinister - Mar 28, 2012 at 1:58 PM

        LOL. Please, Some Guy On The Internet, do go on about how you totally have more business acumen than Magic Johnson.

      • gtizzo - Mar 28, 2012 at 8:06 PM

        Actually there is another professional athlete that has more business sense than Magic his name is Julius Erving aka Doctor J. Once he was done with his basketball career the doctor purchased Pepsi contracts. Today if you purchase a Pepsi in the state of Pennsylvania there is an 80 percent chance your buying it from Doctor J. Course he played basketball in time were players didn’t sign one hundred million dollar contracts. Then didn’t get million dollar endorsement deals.

      • gtizzo - Mar 28, 2012 at 8:17 PM

        But in response to primesinister,

        There is only one team in Baseball worth anywhere close to 2 billion dollars that would be the NY Yankees. Not some triple A team on steroids from the National League. That isn’t “business sense” that is common sense.

  3. brewcrewfan54 - Mar 27, 2012 at 11:18 PM

    Other than the Magic Hour there isn’t much he’s missed on in his business ventures.

  4. andrebeingandre16 - Mar 27, 2012 at 11:19 PM

    Great day for Dodger fans.

  5. phillyphever - Mar 27, 2012 at 11:21 PM

    Honestly, it’s pretty much the only owner out of the three that’s the best fit. Dodger fans need a jolt of excitement after the McCourt disaster. Who better than Showtime himself. Congrats LA, you deserve this.

  6. olmos4527 - Mar 27, 2012 at 11:25 PM

    I’m an Angel fan, but I’m happy to see this happy. Everything Magic touches turns to gold!

    • brewcrewfan54 - Mar 27, 2012 at 11:30 PM

      Except “The Magic Hour”.

      • AlohaMrHand - Mar 28, 2012 at 12:57 AM

        Not totally true,the one with Howard Stern was pretty good

  7. lostsok - Mar 27, 2012 at 11:27 PM

    Happy days are here again,
    McCourt will not be near again,
    The Giants should start to fear again.

    Happy days are here again!

    • Gonzo - Mar 27, 2012 at 11:35 PM

      Awesome.

  8. dickclydesdale - Mar 27, 2012 at 11:36 PM

    STD awareness night!
    Ffree condom giveaway to all fans in attendance when the Nationals come to town.

  9. 1943mrmojorisin1971 - Mar 27, 2012 at 11:36 PM

    Awesome news! Hopefully he makes the baseball world forget about McCourt post haste.

    • paperlions - Mar 28, 2012 at 6:53 AM

      He’s not that magical.

  10. Old Gator - Mar 27, 2012 at 11:37 PM

    Congratulations to all Dodger fans and especially to my friends from LA as well as relict Brooklynites who still carry the torch. A great day for a great franchise, and good riddance to McCourt and the entire circus around him.

  11. mikeone496 - Mar 27, 2012 at 11:40 PM

    How friggin outrageous! $2 BILLion, with a Bee? Proceeds from a Bernie Madeoff deal? This really stinks like the 5am 2 buck taxi tip from a crack house!

  12. lanflfan - Mar 27, 2012 at 11:43 PM

    Get the frack out Frank and don’t let the door hit you on your brains on the out.

  13. 4d3fect - Mar 27, 2012 at 11:48 PM

    Has anyone translated the PR speak to determine whether McScumbag keeps the lots?

  14. illyistic1 - Mar 27, 2012 at 11:53 PM

    yes! I really hope they got the parking lots as well.

    • lanflfan - Mar 28, 2012 at 12:19 AM

      From what I have heard (sorry no source link), the parking lots are part of the sale. McAsshat is part of a joint venture with Magic’s group with the other land surrounding the Stadium (hills and undeveloped land). It’s not a totally clean break, but all the important parts sound like they are finally McAsshat-free.

  15. eugenesaxe - Mar 28, 2012 at 12:02 AM

    I hope it’s worth 2B to get rid of McCourt. Should’ve demanded the parking too.

  16. highlander24 - Mar 28, 2012 at 12:05 AM

    All right Magic! Now all we ask of you is to buy the parking lots and run Frank’s sorry ass out of town. And his wife too while you’re at it.

  17. jkaflagg - Mar 28, 2012 at 12:19 AM

    Read closer, folks…..Frank remains involved with the group that will develop the parking lot land……

    Plus, Magic actually thanked him for the wonderful job he did with the franchise !!!!!!

    $2 billion, still dialed in to develop the parking lot, Magic sucking up to him…..Frank wins again

  18. davecotuit - Mar 28, 2012 at 12:44 AM

    here s what i am concerned about—–

    Mr. McCourt and certain affiliates of the purchasers will also be forming a joint venture, which will acquire the Chavez Ravine property for an additional $150 million.

    if the irishman keeps the parking lots, i ain t goin to the games!!!!!!!!!!!!!!!!!!

  19. randygnyc - Mar 28, 2012 at 12:58 AM

    He keeps a partnership with the land and subsequent lots (and anything else developed on the land in the future. And 2 billion dollars

    Yeah, McCourt comes out way ahead.

    The silver lining? The Yankees are now worth 4 BILLION!!!!

    • sdelmonte - Mar 28, 2012 at 9:06 AM

      Good, because I think they owe A-Rod $1 billion.

  20. billsfansam - Mar 28, 2012 at 1:16 AM

    Los Angeles is not totally rid of McCourt.

    As part of the deal, McCourt will be part of a new joint venture with the ownership group to buy the surrounding land—primarily for the Chavez Ravine parking lots—for around $150 million

    I wont be going to any Dodger games. Not quite a grandslam, Magic.

    I wanted Marc Cuban or the Rams’ owner to get the team, could’ve had football back in LA.

  21. wj4122 - Mar 28, 2012 at 1:17 AM

    Good bye mccheap!! Great day for those who bleed blue!! Easily the best choice of the 3!

  22. cup0pizza - Mar 28, 2012 at 3:01 AM

    Really the best Dodgers news in forever. Words can’t express my happiness & sense of relief. Soon Colletti will be 86′ed. Now I’ll take a break from posting & reading comments here for a while. See you some other time. Go NEW Dodgers.

  23. buffalomafia - Mar 28, 2012 at 3:05 AM

    What does Magic know about baseball?

    Good luck.

    • samu0034 - Mar 28, 2012 at 4:24 AM

      What does he need to know? Especially being a minority stakeholder, all he needs is to know how to do is smile and stay out of the GM’s way. And we all know he’s pretty good at smiling.

    • natstowngreg - Mar 28, 2012 at 9:12 AM

      Stan Kasten knows a great deal about baseball. Shouldn’t be a problem.

  24. losangelasbasketball - Mar 28, 2012 at 6:48 AM

    “God sprinkled a little more gold dust on him.”
    – Jerry West

  25. koufaxmitzvah - Mar 28, 2012 at 6:48 AM

    Very happy that Magic won the bidding. Now Uncle Sam needs to audit ole Frankies taxes over the past 7 years and take enough of a chunk to dent his take.

    • lanflfan - Mar 28, 2012 at 11:48 AM

      That laughing you hear isn’t McAsshat taking his ill-gotten gold to the bank, that’s Uncle Sam preparing to loot McAsshat’s riches. Even Al Capone couldn’t outrun, outfox and outgun the IRS.

      • koufaxmitzvah - Mar 28, 2012 at 12:00 PM

        I rarely root for the Taxman, but this is the time to insist on that Get Out of Jail Free (i.e. You Pay Us the $200 Million You Owe) card.

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