SAC’s Steve Cohen Loses LA Dodgers Bid to Magic Johnson

SAC CAPITAL ADVISORSHedge fund manager Steve Cohen has officially lost out on his bid to own the LA Dodgers according to CNN. While Cohen had been a frontrunner, former LA Lakers legend Magic Johnson, together with a group of investors spent $2 billion to acquire the bankrupt team. They call themselves Guggenheim Baseball Management and, according to the NY Daily News, includes Johnson, Mark R. Walter, Peter Guber, former baseball executive Stan Kasten, Bobby Patton and Todd Boehly.

CNN reports that price was “higher than expected” and constitutes “the most expensive purchase of an American sports franchise in history.”  The previous top sales price for a US team had been $1.1 billion for the Miami Dolphins in 2009 while the top sales price in the world had been $1.4 billion for Manchester United. “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’ in a statement.

That may all be true but the LA Dodgers deal is doubly expensive given what the new owners have to deal with. Attendance at Dodger Stadium has declined sharply, going from an average of 44,000 fans in attendance per game in 2010 to just over 36,000 in 2011. Combine this with its increasing payroll and it is easy to see that the franchise will have to work hard to stay profitable.

The team may be bankrupt, and struggling in the field (it played to make the playoffs the last two seasons), but there is a small fortune to be made in the television rights. Specifically, media outlets will pay billions for the rights to broadcast its games – even if the team is struggling and especially for a team with a following like the Dodgers have. Its current broadcaster, News Corp (NWSA)’s Fox unit has already offered $3 billion for a 17-year extension.

Cohen will be missing out on this one, but losing out on this deal means he will be able to keep his limited share of the New York Mets. Cohen had been one of 12 investors to buy a $20 million stake in the franchise. Under the terms of ownership, Cohen would have had to sell his stake in the Mets if his bid for the Dodgers was approved.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!