The Los Angeles Times has acquired documents providing more details on last year’s $2 billion sale of the Dodgers and Dodger Stadium, after a judge ruled that the Dodgers’ new owners couldn’t keep them secret. And while the specifics are a bit convoluted, the upshot is: Baseball has been very, very good to Frank McCourt, who could end up with three billion dollars on the sale of the bankrupt franchise that he raided in order to line his pockets.
The short version: McCourt got $2.15 billion in cash for the Dodgers, Dodger Stadium, and half-ownership of the stadium parking lots. The new owners, Guggenheim Baseball Management, it now turns out, also were required to “invest as much as $650 million in a real estate development fund run by McCourt,” and to pay him an annual management fee of $5.5 million. As for McCourt’s remaining 50% share of the lots, McCourt is getting at least $7 million a year in rent from the Dodgers, plus has an option to sell back the lots to the Guggenheim for $150 million — or to buy the Dodgers’ share himself to build a non-baseball stadium. And since the NFL has been sniffing around the Dodger Stadium parking lots for a possible stadium, that clause might well come into play.
All this is interesting enough in terms of what happens to the Dodger Stadium property, but mostly because it’s an indication that Guggenheim’s purchase price for the Dodgers is even more insane than it appeared at the time. (“Our goal was to put together a proposal that got a yes,” Guggenheim partner Todd Boehly told the Times yesterday, which roughly translates as “We had to have the team, and money was no object.”) And also an indication that though Dodger Stadium is often referred to as “privately built,” the publicly gifted land that Walter O’Malley picked out from a helicopter ended up being worth quite a bit, indeed.