BBTF's Newsblog Discussion :: Mark Cuban, Dennis Gilbert out of Dodgers’ ownership derby

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Friday, January 27, 2012

Mark Cuban, Dennis Gilbert out of Dodgers’ ownership derby

Dallas Mavericks owner Mark Cuban and local baseball executive Dennis Gilbert did not advance to the second round of the Dodgers’ ownership bidding, according to two people familiar with the process but not authorized to discuss it publicly.

Cuban told The Times in November that he did not believe the Dodgers were worth $1.2 billion. Outgoing owner Frank McCourt believes he can sell the team for at least $1.5 billion.

Gilbert, the former agent and current Chicago White Sox executive, had partnered with former talk show host Larry King as well as Jason Reese and Randy Wooster of Imperial Capital.

Hello, Los Angeles…you’re off the air.

Repoz Posted: January 27, 2012 at 10:59 PM | 21 comment(s) | Login to Bookmark
Tags: Business, General, LA Dodgers, Media

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1. Frank McCourt's Gold Stars are up for sale! Posted: January 28, 2012 at 12:47 AM (#4048014)

AP was reporting Cuban and Gilbert had made the cut, so someone's wrong.

From ESPN, the advancing bidders:

• The group headed by Los Angeles Lakers legend Magic Johnson and largely funded by Guggenheim Partners chief executive officer Mark Walter.

• The group headed by Steve Cohen, the billionaire hedge fund manager and founder of SAC Capital Advisors in Stamford, Conn.

• The group headed by Los Angeles real estate developer Rick Caruso, a group that also includes former Dodgers manager Joe Torre.

• The group headed by Stanley Gold, the chief executive officer of Shamrock Holdings, a private investment company founded by the late Roy E. Disney, with several of Disney's surviving family members also involved in that group.

• The group headed by former Dodgers owner Peter O'Malley, which reportedly has discussed joining the Gold/Disney group but thus far hasn't done so.

2. Frank McCourt's Gold Stars are up for sale! Posted: January 28, 2012 at 12:48 AM (#4048016)

I'd prefer Magic's group win.

3. Joe Kehoskie Posted: January 28, 2012 at 12:51 AM (#4048017)

Not surprised about Cuban given his prior comments about his perceived value of the Dodgers, but the Gilbert news is surprising. It seemed like he had been assembling a group for a year or more.

4. Vaux, A.B.D. Posted: January 28, 2012 at 01:09 AM (#4048025)

My guess is that Torre has inside info that the commissioner prefers Caruso's group. (Maybe he's not as rich as the other bidders.)

5. Joe Kehoskie Posted: January 28, 2012 at 01:19 AM (#4048027)

My guess is that Torre has inside info that the commissioner prefers Caruso's group. (Maybe he's not as rich as the other bidders.)

Mike Ozanian with Forbes came out and said he doubts Caruso/Torre has the money to get the deal done. As I recall, his report said Caruso's net worth has been overstated and that it's illiquid (mostly real estate).

I wouldn't be surprised if MLB saw a bidding war coming and tried to position things for a possible merger between Magic/Kasten and Caruso/Torre. Otherwise, at least one of the MLB insiders is going to lose, since McCourt gets to pick the winner (and apparently has agreed to accept the highest bid).

6. Vaux, A.B.D. Posted: January 28, 2012 at 01:33 AM (#4048028)

Oh yeah, I'd somehow forgotten that Bud doesn't get to pick the winner this time. Otherwise "net worth overstated" and "mostly real estate" sounds like just the ticket.

7. Joe Kehoskie Posted: January 28, 2012 at 01:34 AM (#4048030)

"Baseball's ideal owner," one well-placed insider explained, "is someone who can pay top price for a club but has absolutely nothing left over to start spending wildly on players."

Source: Low profile allows Lerner to play hardball

8. TerpNats Posted: January 28, 2012 at 01:40 AM (#4048033)

If the Caruso/Torre and O'Malley groups joined forces, they would probably have enough popular support (and, possibly, enough money) to get the team.

9. Frank McCourt's Gold Stars are up for sale! Posted: January 28, 2012 at 01:40 AM (#4048034)

It would've been politically untenable for Bud to take anything but the richest of the rich when looking for new LA owners.

10. Frank McCourt's Gold Stars are up for sale! Posted: January 28, 2012 at 01:42 AM (#4048036)

"Baseball's ideal owner..."

Fantastic quote.

11. Frank McCourt's Gold Stars are up for sale! Posted: January 28, 2012 at 01:44 AM (#4048037)

This sale could carry rather far-reaching effects: Do the Rams move back to LA? Does a stadium get built downtown? If not, what does Chavez Ravine development look like in 20 years?

12. TerpNats Posted: January 28, 2012 at 01:59 AM (#4048041)

I still maintain the Angels are a wild card in the downtown LA derby. Moreno can get only so much from an out-of-the-way Anaheim location, and the value of his franchise would at least double if they played in a new park near Staples Center. (The NFL, a more suburban league, would be better off at the City of Industry site, where tailgating would be substantially easier.)

13. Joe Kehoskie Posted: January 28, 2012 at 02:05 AM (#4048044)

12 — The really interesting thing is that the NFL apparently prefers Chavez Ravine over either the AEG proposal or Ed Roski's City of Industry proposal. With McCourt apparently not obligated to sell the Chavez Ravine land, it adds an interesting subplot to the deal.

14. Squash Posted: January 28, 2012 at 05:27 AM (#4048061)

"Baseball's ideal owner," one well-placed insider explained, "is someone who can pay top price for a club but has absolutely nothing left over to start spending wildly on players."

I was going to say baseball's ideal owner is someone who can spend a ton of money on the team, but knows nothing really about running a sports franchise, and so will take it's cues from the commissioner's office. Which is why guys like Cuban and Gilbert are out.

15. Rafael Bellylard: Built like a Molina Posted: January 28, 2012 at 07:29 AM (#4048072)

If not, what does Chavez Ravine development look like in 20 years?

At the current rate, like a parking lot.

16. JE (Jason Epstein)

Posted: January 28, 2012 at 08:47 AM (#4048077)

Peter Gammons:

McCourt won the right to pick Dodger buyer, so there was never any chance for Dennis Gilbert because of his relationship with Bud Selig.

17. Lassus: Posted: January 28, 2012 at 09:23 AM (#4048089)

McCourt won the right to pick Dodger buyer

The guy who destroyed the place gets to choose his successor? There's a great idea.

This really doesn't seem different from a lot of the stories of team sales in 1912 and earlier.

18. JE (Jason Epstein)

Posted: January 28, 2012 at 09:30 AM (#4048092)

The guy who destroyed the place gets to choose his successor? There's a great idea.

And get stinking rich in the process! OTOH, it also means that, unlike with other sales, you don't have to be Selig's BFF to win. So there's that.

19. Joe Kehoskie Posted: January 28, 2012 at 06:43 PM (#4048385)

McCourt won the right to pick Dodger buyer, so there was never any chance for Dennis Gilbert because of his relationship with Bud Selig.

This makes some sense, but Gilbert isn't the only one with MLB or Selig ties among the bidders, many of whom were approved to move ahead. (Kasten was smart to join forces with Magic; it would be a p.r. disaster to eliminate that group too soon.)

20. Swedish Chef Posted: January 28, 2012 at 07:08 PM (#4048395)

I don't see McCourt giving up money so he can settle scores, the ones who are dropping out may just be cheaper than the field, this is not the right time for bargain hunters. Maybe the price is further driven up by it being a rare opportunity to get into the club not depending on connections. The Selig buddies wouldn't pay a premium for that.

21. Fancy Pants Handle is the AntAgonizer Posted: January 28, 2012 at 07:43 PM (#4048411)

I don't see McCourt giving up money so he can settle scores, the ones who are dropping out may just be cheaper than the field, this is not the right time for bargain hunters.

That remains to be seen. I would say. I think the fact that McCourt is selling on a deadline has a chance to really hurt him. That combined with the weak economy, means that people who can drum up 1bn cash on short notice are in short supply. Doesn't sound like a good way to get market value on your sale IMO.

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Mark Cuban, Dennis Gilbert out of Dodgers’ ownership derby

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