After the dust settles on the $2-billion sale of the Los Angeles Dodgers and Dodger Stadium, it looks like Frank McCourt could walk away from the deal with a cool billion-dollar profit.
The math is pretty simple. Guggenheim Baseball Management LLC is paying $1.6 billion for the franchise and the ballpark and paying $400 million toward team debt, according to the Los Angeles Times. There’s an additional $173 million in debt and $200 million in tax liabilities, as well as $130 million owed to Jamie McCourt as part of the McCourt divorce settlement. Throw out some additional fees relating to the bankruptcy, and that will still leave roughly a billion dollars for McCourt, who with his wife bought the team and ballpark for $430 million in 2004. (Not clear: if the new owners assumed all liabilities for the team, which could still include any monies won by beating victim Bryan Stow in an upcoming lawsuit.)
(There have been two figures floating around regarding the sales price of the team. The Dodgers initially announced it was a $2-billion transaction. Other media outfits have since revised that number to $2.15 billion, including money paid to McCourt for the Chavez Ravine land that will basically be sold back to him and other partners for development. Since that transaction is a wash, we’ll stick with the $2 billion figure.)
It truly is amazing that McCourt will be walking away from this train wreck of a baseball team with any money in his pocket, much less a billion dollars. It’s like totaling your Datsun 720 pickup in a freeway accident and being awarded 20 Maybachs as compensation by your insurance company.
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