The long and contentious sale of the Los Angeles Dodgers ended Tuesday night when the iconic but troubled franchise announced that a group led by basketball Hall of Famer Magic Johnson would purchase the team from owner Frank McCourt for a staggering $2 billion.

Johnson and his partners in Guggenheim Baseball Management LLC, which includes controlling partner Mark R. Walter, Peter Guber, Stan Kasten, Bobby Patton and Todd Boehly, beat out several of the wealthiest businessmen in the country in an auction for the team, including New York are hedge fund manager Steven Cohen, who recently purchased a $20 million minority share of the New York Mets. Cohen, who runs SAC Capital Advisors LP, was considered the frontrunner to win the bid, followed by Stan Kroenke, who owns the National Football League's St. Louis Rams and Arsenal of English soccer's Premier League, and Guggenheim.

The agreement, announced by the Dodgers about five hours after Major League Baseball owners approved the three finalists for the auction, is subject to approval in federal bankruptcy court and is expected to close by the end of April, when McCourt must pay $131 milllion to his ex-wife Jamie in what became a bitter divorce settlement leading to the sale of the team.

The Guggenheim group landed one of Major League Baseball's historic franchises, and the $2 billion figure, which will immediately inflate the value of New York's Yankees and Mets franchises, easily tops the record sales price for a U.S. sports team -- the purchase of the Miami Dolphins for $1.1 billion in 2009 by Steve Ross.

The Dodgers' announcement said that 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 Chavez Ravine parking lots had been a bone of contention in the sale, with McCourt angling to keep control of them and the bidders insisting they must be included in the sale price.

"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," said the Dodgers' statement.

"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," said McCourt, who took the Dodgers into bankruptcy following a nasty divorce battle with his wife, Jamie McCourt.
"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."

Johnson said he is "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."

The Guggenheim group will now have an opportunity to launch a potentially lucrative regional sports network in the country's second largest market, or sign a new local broadcast deal with the current broadcaster, News Corp.'s Fox unit, which has already offered the team a 17-year extension valued at nearly $3 billion.

McCourt put the Dodgers into bankruptcy in June and engaged in a battle with commissioner Bud Selig, who he said forced the team into a cash crisis by rejecting a new contract with Fox Sports, which holds the team's television rights through the 2013 season. — with Wire Services

http://www.nydailynews.com/sports/baseba...1#ixzz1qNn6M6id