Chad Moriyama Dodgers, Sabermetrics, Scouting
Bill Shaikin of the Los Angeles Times brought surprising news to us today, which sparked a lot of discussion on the future ownership of the team.
Frank McCourt has been offered $1.2 billion to sell the Dodgers, The Times has learned.
The bid terms proposed by the Burke group call for an all-cash payment to buy the Dodgers, all real estate related to the team and the team’s media rights, according to the letter. Attorneys for McCourt have said he could try to keep Dodger Stadium and the surrounding parking lots even if he sold the team.
Initially, my reaction was that it’s a no-brainer decision.
“Get rid of Frank McCourt?”
“Yes, please! My dreams have come true!”
The more I dug into the bid though, the more skeptical I got.
The letter was presented on behalf of the Burke group by Signal Capital Management of New York. The firm has offices in Beijing, according to its website. Shane Rodgers, chairman and chief executive officer of the firm, said in an email that the firm would not comment “on any potential or proposed transactions.”
The letter did not specify who would finance the Burke bid, other than to say the money would come from “certain state-owned investment institutions of the People’s Republic of China” as well as unidentified American investors. Foreign investment is not necessarily an obstacle to MLB ownership; the Seattle Mariners’ ownership group includes a significant Japanese presence.
Foreign involvement, in general, leaves me a bit skeptical, because it’s always questionable whether they know the game, whether tradition matters, and whether they would make winning a priority. These concerns are especially true because of the shady nature of the investors in this deal.
Yes, the bid is fronted by Bill Burke, but until we know the extent of control he has as a result, it’s meaningless. As of now, the terms imply he is simply the figurehead, and anonymous investors both foreign and domestic are the main source of funds.
To call me skeptical of that is an understatement.
I’m not saying the Dodgers shouldn’t be sold or that this offer shouldn’t be considered, but I’d rather this situation not become another case of be careful what you wish for.
If I’m Frank, I have to take that offer, or at least try to accept it. But then again, Frank is a weasel who’s backed himself into a corner, so I can’t say that I would trust an offer that he accepts.
Seems like he would do anything to not sell.
Any competent financial advisor would tell him to sell. But I doubt he’s listening.
I think of all the reactions to this Burke bid, yours Chad, has been the best one. From “let’s fear teh Commies!!!111!1!!!” reaction of Steve Dilbeck to MSTI’s semi-derisory post, yours point out what I think are the key issues:
>>Foreign involvement, in general, leaves me a bit skeptical, because it’s always questionable whether they know the game, whether tradition matters, and whether they would make winning a priority. These concerns are especially true because of the shady nature of the investors in this deal.<<
And ultimately, I agree with you that until more details emerge, we need to view this proposal with healthy skepticism. Not unfounded ad hominem attacks of "damned foreigners" but rather, would this become a repeat of the Fox ownership, people who are buying the Dodgers not because they love the team/sport but rather people looking for a financial return.
I like Steve’s work, in general, but yeah, I didn’t get the Communist angle on all this. Didn’t read MSTI’s post yet, but thanks.
But yeah, I’m not scared of foreigners, I’m scared of anonymity mainly.
This type of offer almost seems like what it could take to get McCourt out. I know nothing about the worth of the franchise, the land, the media rights, etc. so I have no clue whether this is even a valid offer or not. I also know nothing about the investors to know whether they would make good owners or not. But McCourt seems driven on greed, so an offer that may potentially over values the team could get him to make a quick exit, which would make Dodgers fans happy short term. I agree though that it may not be in our best interest long term. The other scenarios seem so painful though…McCourt kicking and screaming his way out if MLB takes the team from him or, the one I really dread which is, McCourt remains owner by receiving funding elsewhere and continues to steer the team in the wrong direction. I really hope someone who would be good for baseball and good for the Dodgers eventually comes around and makes this weasel an offer he can’t refuse. The team, media rights, property, tickets, etc. all need to be kept intact.
Actually, I think the biggest nightmare is somebody random takes over the entire team and repeats the past mistakes, dragging this scenario out through multiple owners.
I don’t think he should sell it. It doesn’t sound like a good idea.
Thank you, Ivy. :o