Magic Johnson’s group wins Dodgers auction, buys Los Angeles Dodgers baseball team for $2.15 billion

By on Mar 28, 2012 in Baseball, Business, Sports, United States Comments

Basketball legend Magic Johnson, who retired from NBA in 1991, and his investment group Guggenheim Baseball Management (GBM), won the auction bid on Tuesday, March 27, 2012 to buy Dodgers, Los Angeles baseball team for $2.15 billion.

Magic Johnson in 2008
Image Credit: Seth Wenig/Associated Press

According to a press release by Dodgers on its official website that day, GBM, led by EaGrvin “Magic” Johnson with Mark R. Walter as its controlling partner, and other investors, agreed to buy the Los Angeles baseball team.

As noted in the report, Dodgers owner Frank McCourt and certain affiliates of the purchasers will also be forming a joint venture, which will acquire the Chavez Ravine property, a land surrounding Dodger Stadium, including its parking lots, for $150 million for an additional $150 million.

“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.” Los Angeles Dodgers was quoted in the press release.

“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.” Frank McCourt 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.” Magic Johnson reportedly said.

Apparently, the business deal came after Los Angeles Dodgers filed for bankruptcy protection last June to prevent MLB commissioner Bud Selig from seizing control of the team, with Forbes noting that the company’s debt is close to $600 million.

Nevertheless, the Dodgers business deal is now being considered as the most expensive US sports franchise deal, beating the earlier record of Steve Ross, who bought the NFL‘s Miami Dolphins for $1.1 billion in 2009.

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