Bill Madden notes that Frank McCourt is suddenly well liked in baseball circles:
Ever so gradually, Frank McCourt has gone from the most villified owner in baseball to everyone’s guardian angel; from Bud Selig’s worst nightmare to the commissioner’s fondest dream.
Such is the stunning fallout from McCourt plunging the Los Angeles Dodgers into bankruptcy court and the subsequent forced auction in which seven or eight of the richest men in America are all bidding against each other for the right to own one of baseball’s signature franchises. The first elimination round was completed last week with those advancing all committed to paying a minimum of $1.5 billion for the team. When you consider the previous highest price a baseball team fetched was the $845 million from Tom Ricketts for the Chicago Cubs in 2009, this is staggering, especially when you also consider the substantial wealth of all the remaining bidders will surely drive the ultimate sale price to $2 billion.
Imagine what the team would be worth if McCourt was a proper proprietor! Madden also notes this is very good news for the Mets, since the New York franchise should be worth quite a bit of money as well.
He bought the Dodgers for 430 million with borrowed money using parking lots worth 200 million as collatoral in 2004. Now with debts of 650 million, sans parking lots, he stands to make 3/4 of a billion. Even after doling out some to his wife, he stands to make over 500 million less taxes.
Mans a genius.
Also, the Dodgers made the playoffs 4 times in 8 years and increased the teams payroll 15% while revenues increased 35%.
Last years team was a bit unlucky due to injuries.
As owners go, there have been worse.
Bud had an agenda here that might have been foiled by McCourts use of the bankruptcy courts to make sure the team got sold to the highest bidder, and from preventing MLB seizing control and managing the process.
…the substantial wealth of all the remaining bidders will surely drive the ultimate sale price to $2 billion.
I don’t think the wealth of the bidders will change how they value the club.