When the Dodgers were sold last year, the price was announced as $2.15 billion. Guggenheim Baseball Management bought the team and Dodger Stadium from Frank McCourt for $2 billion — $1.588 billion in cash and $412 million in debt assumption — and paid $150 million for half-ownership of the land surrounding the stadium. McCourt retained half-ownership in the land.
However, the deal includes other terms that were not announced. Los Angeles Superior Court Judge Scott Gordon denied Guggenheim’s request to keep those terms secret. As a result, a financial summary of the deal — but not the actual sale documents — has become publicly available.
The summary appears below; the shaded section contains the terms Guggenheim did not want public. In addition to the announced sale price, McCourt can sell his half-ownership in the land to Guggenheim for another $150 million or can buy back part of the land in order to build a sports venue there.
Guggenheim agreed to invest $400 million in a real estate development fund run by McCourt, for projects outside the Dodger Stadium property, with the possibility of a second investment, that one at $250 million. He also gets half of any profits.
For running the fund, McCourt gets an annual management fee that starts at about $5.5 million. He also gets half of the annual fee the Dodgers pay to rent the parking lots; McCourt’s share starts at $7 million a year.
And, so long as Guggenheim is an investor in the team and/or stadium, McCourt gets a free luxury suite at Dodger Stadium for the rest of his life.
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