Everyone knows that the Dodgers are up for sale and are drawing some big financial guns into the bidding for one of the most storied and cherished baseball franchises in history. This by itself would be a huge story, but oh no, this is LA and the plot gets MUCH thicker. In fact, the process is playing out like an online poker game and no one is showing their cards. Well at least no one that is still in the running! Recently it was revealed that Mark Cuban had not made it to the next round of the process to bid on the Dodgers. More on this later.
You see, the Dodgers come with a great deal of assets outside of the team and the brand. Dodger Stadium is a crown jewel and third oldest baseball stadium in existence today. But more importantly, in terms of finances, is the land and lots of it that surrounds the stadium and overlooks downtown LA. There is a ton of land there and in LA land is at a huge premium. In fact, there is so much land there that people have proposed building an adjacent NFL stadium! OK, so now this is turning into a real game of poker jatekok. I’ve thought for years that the land is probably worth more than the team.
But wait, it gets even better. Also being auctioned off are the future television rights to Dodgers games, and LA is a sports hot bed. The future rights to broadcast Dodgers games will lead to either a monsterous deal with a TV network that will probably be close to a billion dollars or more, or an enterprising owner could build their own regional sports network as the Yankees have with their YES network. This is what will really help to drive bids for the Dodgers into the 1.5 to 2 billion dollar range. This was enough to make even Mark Cuban fold, noting that bidding was getting out of control and that people were bidding for the TV rights first and the franchise second! Now texas holdem can be a long and tedious game, with lots of bluffing and certainly lots of rasing the pot. I expect nothing less as this entire process plays out before us over the next few months. But what worries me the most is that potential owners seem to not be giving the team the attention that it deserves here. Potential owners should be more concerned with putting together a winning team than they should the media rights. After all, if the franchise continues its downward spiral the media rights will not be worth anything at the end of the day.







