Dodgers sold to Magic Johnson's group for 2B

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Dodgers sold to Magic Johnson's group for 2B

From Comcast SportsNet
NEW YORK (AP) -- One Los Angeles institution is buying another. A group that includes former Lakers star Magic Johnson and longtime baseball executive Stan Kasten agreed Tuesday night to buy the Dodgers from Frank McCourt for a record 2 billion. The price would shatter the mark for a sports franchise. Stephen Ross paid 1.1 billion for the NFL's Miami Dolphins in 2009, and in England, Malcolm Glazer and his family took over the Manchester United soccer club in 2005 in a deal then valued at 1.47 billion. Mark Walter, chief executive officer of the financial services firm Guggenheim Partners, would become the controlling owner. The deal, revealed about five hours after Major League Baseball owners approved three finalists for an intended auction, is one of several steps toward a sale of the team by the end of April. It is subject to approval in federal bankruptcy court. "I am thrilled to be part of the historic Dodger franchise and intend to build on the fantastic foundation laid by Frank McCourt as we drive the Dodgers back to the front page of the sports section in our wonderful community of Los Angeles," Johnson said in a statement. As part of the agreement, the Dodgers said McCourt and "certain affiliates of the purchasers" would acquire the land surrounding Dodger Stadium, including its parking lots, for 150 million. "If they invested that much money, I'm sure they'll invest to get us a winner," said Tommy Lasorda, the Dodgers' retired Hall of Fame manager. "I wish them all the luck, and I admire them. I know both of them. I know Magic from the day he came into Los Angeles as a basketball player for the Lakers." The acquiring group, called Guggenheim Baseball Management, has several other investors, among them Mandalay Entertainment chief executive Peter Guber, Guggenheim Partners president Todd Boehly and Bobby Patton, who operates oil and gas properties among his investments. Kasten is the former president of the Atlanta Braves and Washington Nationals. "I am truly honored to have partnered with such talented individuals and to be associated with the Dodgers organization," said Walter. "We look forward to building upon the legacy of the Dodgers and providing long-term stability to one of the most revered franchises in baseball." The 52-year-old Johnson played 13 seasons for the Los Angeles Lakers, winning five NBA championships and three MVP awards in a Hall of Fame career. He retired from the NBA in 1991 after being diagnosed with HIV, the virus that causes AIDS. He briefly came out of retirement during the 1995-96 season and had a short stint coaching the Lakers. Since leaving basketball, he has been very successful in business, investing in movie theaters, a production company and restaurants. He has also been an activist in the fight against HIV. "I'm upset he didn't cut me in," current Lakers star Kobe Bryant said. "I'm going to have to talk to him about that." McCourt paid 430 million in 2004 to buy the team, Dodger Stadium and 250 acres of land that include the parking lots, from the Fox division of Rupert Murdoch's News Corp., a sale that left the team with about 50 million in cash at the time. The team's debt stood at 579 million as of January, according to a court filing, so McCourt stands to make hundreds of millions of dollars even after a 131 million divorce payment to former wife Jamie, taxes and legal and banking fees. Kasten is expected to wind up as the team's top day-to-day executive. The other two finalists were: -- Stan Kroenke, whose family owns the NFL's St. Louis Rams, the NBA's Denver Nuggets, the NHL's Colorado Avalanche and Major League Soccer's Colorado Rapids. He also is majority shareholder of Arsenal in the English Premier League. -- Steven Cohen, founder of the hedge fund SAC Capital Advisors and a new limited partner of the New York Mets; biotechnology entrepreneur Patrick Soon-Shiong; and agent Arn Tellem of Wasserman Media Group. It remains to be seen whether Major League Baseball will challenge the deal in U.S. Bankruptcy Court in Delaware, where the case is before Judge Kevin Gross. Under an agreement reached by MLB and McCourt in November, a private auction was to be held among the finalists and McCourt was to select the winner by Sunday. The sales agreement is to be submitted to the bankruptcy court by April 6, ahead of a hearing seven days later, and the sale completed by April 30, the day McCourt is to make a divorce settlement payment. "This agreement with Guggenheim reflects both the strength and future potential of the Los Angeles Dodgers, and assures that the Dodgers will have new ownership with deep local roots, which bodes well for the Dodgers, its fans and the Los Angeles community," McCourt said in a statement. The acquiring group would gain the ability to sell the Dodgers' local broadcasting rights starting with games in 2014. The Guggenheim group likely would use money gained from the rights sale -- or from the team's own network with outside investment -- and use those funds to pay down the acquisition debt. "The amount of leverage is a big question," said Marc Ganis, president of the Chicago-based consulting firm Sportscorp, which is not involved. "The likely scenario is that they have a broadcasting deal in mind so that they pay up now and pay themselves down from a big broadcasting upfront payment. "The problem with this strategy is that the more paid upfront by the broadcast deal, the less money is available for team operations. The more debt they take on, the more debt service is required, the less money that's available for team operations. With the only beneficiary being the man walking out the door. A challenging result that baseball tried to avoid." The current record for a baseball franchise is the 845 million paid by the Ricketts family for the Chicago Cubs in 2009. The Dodgers filed for bankruptcy protection in late June, just days before the team was expected to miss payroll. The filing came after baseball Commissioner Bud Selig refused to approve a 17-year agreement between the Dodgers and Fox's Prime Ticket subsidiary that would have been worth 2 billion or more. MLB feared McCourt would use about half of an intended 385 million cash advance to fund his divorce. Los Angeles finished third in the NL West last season at 82-79, had just three sellouts and fell short of 3 million in home attendance in a full season for the first time since 1992. There was some concern among MLB officials about the financing of the Walter bid because some of the money was coming from insurance companies that are owned by Guggenheim. A person familiar with the baseball owners' teleconference Tuesday said several team owners voiced that during the call. The person spoke on condition of anonymity because MLB did not make any announcements. "The problem there is a fundamental problem as you go into an auction, and that is the absolute reliance on other people's money," said Ganis. "It means a lot of regulators. It means either shareholders or, depending on which insurance companies it's coming from, the insured themselves." Kasten was hired as legal counsel of the Braves and the NBA's Hawks in 1976, and three years later became the NBA's youngest general manager at 27. He was promoted to president of the Braves and Hawks in 1986 and also became president of the NHL's Thrashers in 1999. After leaving the Atlanta teams in 2003, he became president of the Washington Nationals from 2006-10. Dodgers general manager Ned Colletti recently had dinner with Kasten in Glendale, Ariz., the team's spring training home. "He's very successful, very driven, relentless in his pursuit of excellence," Colletti said. "He's seen a lot and he's won a lot." The Dodgers have won six World Series titles but none since 1988, when they were still owned by the O'Malley family that moved the team from Brooklyn to California after the 1957 season. Fox bought the team in 1998, then sold it to McCourt. Colletti, whose baseball moves appear to have been constricted because of the team's financial problems, says the sale announcement brings "clarity." "It's time to turn the page and move toward a new chapter in the history of the Los Angeles Dodgers," he said.

Irving takes over in third quarter, Cavs beat Celtics in Game 4, 112-99

Irving takes over in third quarter, Cavs beat Celtics in Game 4, 112-99

CLEVELAND – They had them right where they wanted them.

LeBron James was in foul trouble.

Kyrie Irving had not yet heated up, and the lead hovered above double figures but seemed oh-so-close to creeping upwards of 20 points if the Celtics did a better job of making open shots in the first half.

Those missed shots, combined with a Kyrie Irving takeover in the third quarter, would prove to be part of the narrative for Game 4 – missed opportunities - as the Cavs rallied for a 112-99 Game 4 win.

Cleveland now leads the best-of-seven series 3-1, with a chance to eliminate the Celtics in Boston on Thursday and advance to the NBA Finals where a well-rested Golden State team will be awaiting them.

Irving led all scorers with a playoff career-high 42 points, 21 of which came in the third quarter. Meanwhile, Boston’s Avery Bradley had 19 points while Jae Crowder (18 points), Al Horford (16), and Kelly Olynyk (15) also finished with double figures scoring.

"He put the team on his back," said Tristan Thompson, regarding Irving's play. "He still has another gear."

Boston spent all of the fourth quarter playing from behind, failing to get that necessary made shot or defensive turnover or stop that they needed to slow down Cleveland’s growing momentum.

And with Irving making a slew of clutch baskets that put Cleveland in control, it was James’ turn to put the game away.

He did just that, finishing with 34 points which included 15 in the fourth quarter.

But for a good chunk of Tuesday’s Game 4 matchup, it looked as though the Celtics were coming back to Boston for Game 5 with the series tied up.

It was an odd game for sure, with nothing being any stranger than LeBron James being whistled for not one, not two, not three, but four personal fouls … in the first half.

The fourth came when he was whistled for an offensive foul against Terry Rozier with 6:46 to play and Boston ahead by 10 points.

With James on the bench, Cleveland managed to play Boston to a standstill as the half ended with the Celtics still leading by 10 points (57-47).

Cleveland slowly crept back in the game in the third, and eventually went ahead 73-72 following a pair of free throws by James with 3:15 to play in the quarter.

The Cavs were able to lead by as many as five points in the third quarter which ended with Cleveland ahead 87-80 as Irving scored the last 14 points for Cleveland which included a buzzer-beating 3-pointer that would be the final points scored in the quarter.

Cleveland’s strong finish to the third was a striking contrast to how the game began.

Boston got off to its best start in this series after a 3-pointer by Jae Crowder put the Celtics ahead 18-11.

The Celtics went ahead 22-13 after a pair of free throws by Jonas Jerebko and would eventually lead by as many as 16 points.

Meanwhile, James – the man Crowder was defending most of the time early on – had six points in the first quarter on 3-for-7 shooting.

WNBA: Sylvia Fowles' 21 points, 13 rebounds lead Lynx past Sun, 80-78

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WNBA: Sylvia Fowles' 21 points, 13 rebounds lead Lynx past Sun, 80-78

SAINT PAUL, Minn. - Sylvia Fowles had 21 points, 13 rebounds and four blocks to help the Minnesota Lynx beat the Connecticut Sun 80-78 on Tuesday night.

Seimone Augustus added 16 points, including nine in the third quarter, for the Lynx (4-0).

Morgan Tuck hit a 3-pointer from the wing to pull Connecticut to 80-78 with 19.8 seconds left and Lindsay Whalen missed two free throws at the other end. After a timeout, Connecticut worked the ball around but a jump ball was called with 2.2 seconds left. The Sun gained possession but weren't able to get off a shot.

Maya Moore added 12 points, six rebounds and five assists for Minnesota, which is ranked second in the AP power poll. Rebekkah Brunson grabbed seven rebounds to move into fourth on the all-time WNBA list.

Jasmine Thomas made a career-high five 3-pointers and scored 18 points for 11th-ranked Connecticut (0-3). Jonquel Jones added 16 points and Tuck finished with 12 points and 10 rebounds.

Minnesota has won 21 straight games in the month of May since 2012.