Magic group finds a way to outbid all others in Dodger deal

Just offer a fantastic amount of money: $2.15 billion, in cash. From the WSJ:

According to a person involved with the process, the auction had been expected to take place Wednesday. Blackstone had asked the parties to submit sale contracts last week and deliver their initial offers by Tuesday morning, since approval of the bidders from Major League Baseball was expected to come easily on Tuesday afternoon. When the offers arrived, the bid from the Johnson-Walter group was so much higher than the competing offers, it essentially took the franchise off the block almost instantly. The person said the other offers, which were perceived as opening bids, were in the range of $1.5 billion, some 25% less than the Johnson-Walter bid. As a result, the other bidders were never given a chance to match, and the deal was wrapped up by Tuesday evening.

Controlling owner Mark Walter will be making a significant personal contribution to the purchase price, the Journal reports, with investment firm Guggenheim Partners, which he heads, also covering much of the cost. You might recall that up until a few days ago the investment group led by hedge fund billionaire Steve Cohen was said to be offering $1.6 billion, which seemed over the top (previous record for a sports franchise was $1.1 billion for the Miami Dolphins).

Last night's announcement leaves a bunch of questions unanswered, starting with the involvement of Frank McCourt. Statement says that McCourt and "certain affiliates" of the new ownership will be forming a joint venture that will acquire the property surrounding Dodger Stadium for an additional $150 million. The stadium parking lots, which McCourt had been wanting to keep, are apparently not part of the sale. So McCourt will be involved with the new owners in some way, although there are no specifics. The biggest unknown, of course, is what happens with the TV contract, which expires at the end of the year.