Jared Kushner has withdrawn from the Los Angeles Dodgers ownership sweepstakes, leaving seven candidates left.
Kushner, the owner and publisher of the New York Observer and son-in-law of Donald Trump, submitted a bid with a financial structure Major League Baseball declined to approve, according to a person familiar with the sale process but not authorized to discuss it.
Kushner was invited to consider restructuring his bid or joining with another group, the person said. He instead withdrew his bid.
Speaking of the ownership situation, Steve Dilbeck had a nice find, as he wrote about Darren Rovell‘s thoughts about the team being overvalued.
Will he get the bid he dreams of? Stay tuned. But if the new owner is dropping $1.5 billion to $2 billion, sports business writer Darren Rovell of CNBC.com said there is no money to be made on the team.
Rovell said the team itself is still valued at $800 million and the property from $200 million to $300 million. Some have claimed this is less about buying the Dodgers than the TV rights.
Wrote Rovell: “Some will say it’s in the TV money, but it’s not there either. A deal with a network would yield about $150 million a year, but if the Dodgers start a regional sports network, they’ll likely be sharing at least 25% of the overall revenue, which would affect the rights fee.”
If it’s a vanity buy, it is one crazy purchase. And then you have to wonder about the impact down the line.
“If a bid is a stupid bid, do you think the owner wants to pump more money into the team?” Rovell asked. “If a bid is fiscally irresponsible, does it necessarily increase the value of all teams? No. It’s just an outlier.”
Besides the parking lots, my worry now is that the new ownership will be so focused on making their money back that the money won’t be spent on the team.
The team recently signed two players in right-handed pitcher Blake Johnson and second baseman Brandon Mims.
The Dodgers originally selected Blake Johnson in the second round of the ’04 draft, then packaged him in a deal to the Royals for Elmer Dessens in July ’06. Johnson pitched in the Royals and Rockies organizations last year.
The Blue Jays signed Brandon Mims for $230,000 out of the ninth round of the ’10 draft, but they released the Carrollton, Texas, product last September after he did not play during the season. He went 1-for-2 in the Gulf Coast League in ’10, and that’s the extend of his pro experience.
I’d honestly like to know what the personal reasons were for Brandon Mims being released, but for now he seems like a solid addition to the system at a minimal price.