Truth & Rumors > MLB

Economist: $1B realistic for Dodgers

Views
16692
Comments
26

08:13 AM ET 11.14 | Thanks in some part to the surrounding land footprint, the Dodgers, according to several sports economists, are expected to go for $1 billion. "If you're talking about the asset value of the Dodgers franchise, the stadium, the parking lots and the surrounding acreage, I think a number in neighborhood of $1 billion is reasonable," Andrew Zimbalist, a professor of economics at Smith College, said last week. "I believe the reasonable or final offer will be $900 million to $1 billion." One of the biggest reasons for the Dodgers' value is all the undeveloped real estate surrounding Dodger Stadium, which sits on 275 acres of land that is largely used for parking.

ESPNLosAngeles.com

Frank McCourt, Getty Images Frank McCourt, Getty Images
November 14, 2011  08:40 AM ET

Not so sure in this economy

November 14, 2011  08:44 AM ET

Does that price include the funding of the security forces to keep the beatings and rapes down.

November 14, 2011  08:49 AM ET
QUOTE(#3):

Not so sure in this economy

A sensibley run Dodgers organization will still put 3.5-4 million fannies in the seats. Plus all the concessions and parking...who knows, it is still one one of the top five franchises to own in the USA

November 14, 2011  08:59 AM ET

you cant make money if you pay that ... no way someone drops that kinda cash on that franchise after the dude has run it into the ground.

November 14, 2011  09:47 AM ET
QUOTE(#6):

you cant make money if you pay that ... no way someone drops that kinda cash on that franchise after the dude has run it into the ground.

It's not that far in the ground. Fans stayed away this year because of the Bryan Stow incident and general dissatisfaction with McCourt. The team has a solid nucleus of talent. With a new owner, particularly if the owner has Dodger roots, this team will quickly become one of the biggest draws in baseball again.

November 14, 2011  10:06 AM ET
QUOTE(#6):

You cant make money if you pay that ... no way someone drops that kinda cash on that franchise after the dude has run it into the ground.

I wouldn't be at all surprised if it went for that. They compete. They are only a couple of players away from getting back on top in a somewhat weak division.

November 14, 2011  10:28 AM ET

They are not worth that right now. got to see their financials. but I believe McCourt left them debt heavy. If they sell their TV rights they are worth less even. The real value, or perhaps the undervalue of this team would be in creating their own cable channel. Not sure what the #s look like for that, but that is a windfall.

Comment #10 has been removed
November 14, 2011  12:24 PM ET
QUOTE(#10):

Actually - with all to property - this is a lock stock and barrel sale..... ALL holdings..... It may not be too far from the truth.

Still don't know the size of the debt that McCourt has saddled the franchise with.

Comment #12 has been removed
November 14, 2011  01:12 PM ET
QUOTE(#12):

True - but the property is a key right now. I'll make the debt load more palatable for leveraging the right type of credit and cash flow necessary to get the organization back on its feet financially.

The only thing that is going to make anything more platable is increased revenue. for a billion dollars the team should have around 100million in profits, net, per year. Unless one is counting on land sales/rentals, or TV revenue to approach that, while also taking into account the debt service. I doubt it.

Unless they have a buyer for the land and it diminisheds the debt to the point where they are making 100mil per...doubt it.

Comment #14 has been removed
November 14, 2011  01:43 PM ET

if that was the case, if in reality this franchise cost its 1 billion, why the previus owner didn't sold the team in one billion?

November 14, 2011  03:33 PM ET

The Dodgers themselves have no debt. Frank McCourt is the person with debt. When he sells the team, it will be to pay off his debts, unless the selling contract includes taking over those debts.

November 14, 2011  03:36 PM ET
QUOTE(#16):

The Dodgers themselves have no debt. Frank McCourt is the person with debt. When he sells the team, it will be to pay off his debts, unless the selling contract includes taking over those debts.

Do not confuse a baseball franchise with a corporation. The owner is the only person responsible for financial matters. He can hire people to assist with it, but in the end, he is responsible for the decisions just like he is responsible for paying his employees (including players).

November 14, 2011  05:26 PM ET
QUOTE(#14):

Probably - high finance isn't my expertise. But I think if there was someone to pull it off it would have been Cuban. He knows how to deal with bringing a franchise back.... And of course - it's only worth a billion if someone is willing to buy it for a billion - otherwise - it stays on McCourt's books.

It, like any property, should be valued at the income it can throw off.

November 14, 2011  07:42 PM ET
QUOTE(#16):

The Dodgers themselves have no debt

matt kemp will be signning a 8 years/ 160 millions deal, and yes the dodgers do not have any debt, the owner does!!

November 14, 2011  07:44 PM ET

fielder to the dodgers for 5 years/ 110 millions deal,,,,,,, just a reminder!!!

November 14, 2011  07:44 PM ET

where its the salary cap when its needed???

 
November 15, 2011  03:02 AM ET

Need to remember that this is an investment and that major sports organizations appreciate in value over time. The object is not to recup the initial investment but rather speculate on the future valute of the organization over 5-20 years. So, even though McCourt bankrupt the organization, once he sells it he will recup all the loses and then make a pretty penny....

Comment

Remember to keep your posts clean. Profanity will get filtered, and offensive comments will be removed.


Truth & Rumors

MOST POPULAR

  1. 1
    Kerr 'absolutely expects' Knicks offer
    Views
    1363
    Comments
    1431
  2. 2
    Bryant headed back to Germany
    Views
    4279
    Comments
    930
  3. 3
    Shakeup looms for White Sox
    Views
    6014
    Comments
    336
  4. 4
    Yankees, Mets, Red Sox among Hanrahan hopefuls
    Views
    1926
    Comments
    167
  5. 5
    No return timetable for Lightning MVP
    Views
    633
    Comments
    140

SI.com

SI Photos