Dodger Ownership Conundrum Takes Shape

by John M. Curtis
(310) 204-8700

Copyright Janaury 5, 2012
All Rights Reserved.                                         

                When Los Angeles Dodgers owner Frank McCourt agreed to sell the franchise Nov. 1, 2011 the city exhaled in relief, anticipating what’s shaping up a competitive bidding war.  Frank never knew when he leveraged his South Boston parking lot business in 2004 to buy the Dodgers from Rupert Murdoch’s NewsCorp for $430 million, that he’d face such public humiliation and a bitter divorce.  When Frank and his wife Jamie came to LA in 2004, they arrived rubbing elbows on Hollywood’s red carpet.  It didn’t take long for the McCourt’s to dominate the tabloids, eventually exploding in a salacious separation and divorce in 2009.  While the team languished, the McCourts exposed all their dirty laundry in open court in what developed into one of the most sensational divorces in U.S. history.  Jamie, who was Dodgers’ CEO, was accused of an affair with her driver and personal trainer.

            Frank was in no conciliatory mood when he went to court claiming that Jamie was not co-owner of the Dodgers, producing a post-nuptial property agreement proving that he was the team’s sole owner.  On Dec. 7, 2010, Los Angeles Superior Court Judge Scott Gordon invalidated Frank’s marital property agreement, citing discrepancies in versions of the document, awarding the team as community property.  After MLB appointed April 25, 2011 former Texas Rangers executive Tom Schieffer to supervise Dodgers’ baseball operations, Frank countered June 27, 2011 filing Chapter 11 bankruptcy in federal court, hoping to save the team. While the McCourts battled in court, the Dodgers languished on the field.  Finally, on June 17, 2011, the McCourts reached a divorce settlement contingent on Frank’s billion-dollar 17-year deal with Fox Television, promptly vetoed by MLB. 

            After Frank agreed Oct. 17, 2011 to pay Jamie $131 million, the wrangling started to end Frank’s hold on the team.  Working with MLB, Frank finally agreed to sell the team with opening bidding starting Jan. 23, 2012.  What he bought from Fox in 2004 for $430 million was expected to fetch opening bids of $850 million, prompting a number of ownership groups to jockey for position.  Favorites for buying the team include, (a) billionaire Dallas Mavericks owner Mark Cuban, (b) Los Angeles Lakers’ great Magic Johnson with Guggenheim Partners, (c) Chicago White Sox special assistant Dan Gilbert with TV talk show host Larry King and Imperial Capital, (d) former Dodger general manager Fred Claire with Oakland A’s president Andy Dolich, (e) former Dodger owner Walter O’Malley, and (f) former Dodger greats Orel Hershiser and Steve Garvey with Natural Balance Pet Foods.

            Throwing the process for a loop, Hall of Fame catcher and former Dodgers manager Joe Torre suddenly quit his MLB executive VP job, announcing his intent to buy the franchise with Los Angeles developer Rick Caruso.  “In Rick, I found a partner who understands consumers and full appreciates that the Dodgers are a treasured LA institution,” said Torre, announcing with MLB’s blessing that he intends to pursue the team.  Torre’s entrance into the Dodger sweepstakes with Caruso automatically vaults him to frontrunner with his impeccable MLB credentials and solid backing from one of LA’s richest citizens.  Carsuso cut his civic teeth not only building “The Grove” but serving as President of the Los Angeles Police Commission, bringing former New York Police Commissioner Bill Bratton to Los Angeles.  He showed a steady hand at the LAPD during a time of scandal and upheaval.

            Hinting at the outcome, MLB Commissioner Bud Selig expressed his delight over Torre’s decision to pursue the Dodgers.  “Joe has been an invaluable resource for me and all of us and Major League Baseball this year,” said Selig.  “I understand his desire to pursue an opportunity in Los Angeles.  Joe has been a lifelong friend and I know that will continue in the future,” said Selig, giving his stamp of approval.  Unlike Frank McCourt, Torre brings with him a winning tradition as a ballplayer and manager, bringing the New York Yankees four titles during his 10-year stint.  Apart from other well-credentialed buyers, Torre and Caruso have no weaknesses, bringing together solid financial backing with unequalled baseball experience.  When Selig picked McCourt in 2004, he knew the Parking-lot entrepreneur lacked baseball experience and mortgaged himself to the hilt to buy the team.

            Whatever damage the McCourts did to the Dodger brand, Frank is about to walk away smelling like a rose.  While MLB will receive a number of legitimate offers, none has more baseball experience and cash than Torre and Caruso.  If Caruso plans to run for major next year, his ownership interest would have to placed in a blind trust to avert any conflicts-of-interest.  Having a close relationship with Selig also helps Torre and Caruso’s bid for one of LA’s two most coveted sports franchises.  With Torre and Caruso  at the helm, the Dodgers are poised to return to championship form.  McCourts eight seasons with the Dodgers brought mixed results, especially under the dark cloud of the last two seasons.  When MLB considers the bids, they must place high priority on known quantities.  No one questions Torre’s MLB track record or Caurso’s deep pockets and commitment to Los Angeles.

  John M. Curtis writes politically neutral commentary analyzing spin in national and global news.  He's editor of OnlineColumnist.com.and author of Dodging the Bullet and Operation Charisma.       

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