The Los Angeles Dodgers’ acquisition of the Boston Red Sox’s three highest-paid players last month fit the team’s business model, Stan Kasten, Dodgers chief executive officer, said at the Bloomberg Sports Business Summit hosted by Bloomberg Link in New York.
The Los Angeles Dodgers’ new ownership group is confident about making a return on its record $2.3 billion investment and the addition of All-Stars Hanley Ramirez, Adrian Gonzalez, Josh Beckett and Carl Crawford fits into that plan, Chief Executive Officer Stan Kasten said.
The new owners of the Los Angeles Dodgers will need more than great play on the field to justify the record $2.15 billion they paid for the baseball team. They may need to transform the real estate surrounding Dodger Stadium into a money maker, succeeding where their predecessors failed.
Magic Johnson’s winning $2.3 billion offer for the Los Angeles Dodgers probably was fueled by what one sports economist called a “wild bidding process” that will unfold between Time Warner Cable Inc. and News Corp.’s Fox Sports for the Major League Baseball team’s broadcast rights.
News Corp.’s Fox Sports unit will sign a television deal with the Los Angeles Dodgers that’s worth $6 billion to $7 billion over 25 years, Deadline Hollywood said, without disclosing where it got the information.
The Los Angeles Dodgers have shot out of bankruptcy and into the ranks of baseball’s biggest spenders, fueled partly by a secret agreement between former owner Frank McCourt and Major League Baseball that may limit the revenue the team is obliged to share with less prosperous clubs.
When Mark Walter, the chief executive officer of Guggenheim Partners LLC, ran Chicago investment firm Liberty Hampshire Co., a junior associate asked in 1996 why he decided to accept money from outside investors.