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Dodgers sale awaits owners' OK

Frank McCourt, of Brookline, Massachusets, stands in his office in Boston, in this 2001 file photo. McCourt, president and CEO of The McCourt Co, a firm primarily involved in real estate development, reached an agreement on Friday to purchase the Los Angeles Dodgers from News Corp. PHOTO: AP

Frank McCourt, a prominent Boston land developer, reached agreement Friday with News Corp to purchase the Dodgers in a deal that sources said is worth US$430 million.

The sale cannot be finalized until it receives the approval of at least a majority of baseball's 29 other owners, who are expected to vote next month.

In addition to the franchise, McCourt would acquire Dodger Stadium, the team's spring-training facility in Vero Beach, Florida, a developmental complex in the Dominican Republic and land near Dodger Stadium that could lure the NFL back to Los Angeles.

"We feel enormously privileged and excited about this opportunity to lead the Dodgers to continued excellence across every level of the organization," McCourt said in a statement released by News Corp

"We anticipate a smooth completion of this transaction in the weeks ahead, and when approved, our most immediate goals are returning the Dodgers to the World Series and making each fan's experience at Dodger Stadium the absolute best that it can be."

"This is an organization that under the O'Malley regime was all about class. It was dignified, and it was a winner, and hopefully we can get back to that."

Dodgers Vice President Tommy Lasorda

McCourt, 49, and his wife, Jamie, arrived in Los Angeles on Thursday from their home in Brookline, Massachusets, to resolve the final details of the agreement, which was reached with News Corp executives Friday.

If approved, the transaction will end the often-controversial ownership tenure of News Corp, which bought the Dodgers from Peter O'Malley in 1998 for US$311 million. The team has run deficits every year under News Corp ownership.

"This is an organization," longtime manager and team Vice President Tommy Lasorda said, "that under the O'Malley regime was all about class. It was dignified, and it was a winner, and hopefully we can get back to that."

The sale would fulfill a lifelong dream for McCourt, who attempted to buy the Angels last year and the Boston Red Sox in 2001 but whose financial credibility was questioned. McCourt's bid for the Dodgers included substantial backing, believed to be from East Coast investors, and a source said News Corp has no concerns about McCourt's bid.

An ownership transition would almost certainly mean the removal of managing partner and CEO Bob Daly. A source close to McCourt said McCourt plans to be "very active" in the team's direction and plans to split time between Boston and Los Angeles.

And although News Corp would continue to run the team until the potential sale is approved, it is expected that McCourt would be consulted on any financial matter that would impact the team, specifically in regards to player contracts.

"Between now and the anticipated transition, we have to make sure this [sale] isn't a distraction and that we accomplish the goals we set for the upcoming season," Dodgers Vice President Derrick Hall said.

Speculation will immediately focus on the status of general manager Dan Evans and manager Jim Tracy, whose jobs would be in question under a new owner. Also in doubt would be the long-term status of Dodger Stadium.

Sources said McCourt would consider a transaction that would have him give up the land in Chavez Ravine in exchange for land near Staples Center, which at one time had been earmarked for a possible NFL stadium.

Under the plan, McCourt would build a new stadium for the Dodgers downtown, and Dodger Stadium would be razed in favor of a NFL stadium in Chavez Ravine. Dodger Stadium, which opened in 1962, is the National League's second-oldest ballpark.

"I think a lot of people would miss it," Dodgers catcher Paul Lo Duca said. "It does need work where [the players] are. We really don't have a batting cage, and the clubhouse is small. I think it needs to be livened up a little more up there."

McCourt likely hasn't had much time to think about these big decisions. He became a major player in the team's sale approximately two months ago, as News Corp's negotiations with Tampa Bay Buccaneers owner Malcolm Glazer broke down.

Glazer had reached an agreement with News Corp, but the proposed sale stalled in part because the NFL wanted Glazer to come up with money independent of the Buccaneers with which to purchase the Dodgers.

Other candidates, such as former Seattle Mariners owner Jeff Smulyan and real-estate developer Alan Casden, remained in the picture throughout the negotiations, but McCourt quietly and quickly established himself as the top candidate.

That came as something of a surprise in Boston, since McCourt's bid for the Red Sox had been privately ridiculed in some circles.

McCourt made his name in New England largely because of the 25 acres of waterfront land he owns in Boston. McCourt planned to build a new ballpark for the Red Sox on that land, but his bid failed, as did his plans for buying the Angels last season.

A scion of one of Boston's most successful construction companies, McCourt is believed to have a personal worth in the range of US$400 million, meaning his outside financial backing was a major part of his success in the Dodgers agreement.

The US$430 figure includes various tax- and land-related deals that push the actual purchase price of the franchise closer to US$400 million.

McCourt's valuable waterfront land remains undeveloped, but McCourt rents out the land, which is used for 2,100 parking spaces for Boston commuters.

Assuming baseball owners find no problems with McCourt's finances, it would be up to him to restore the Dodgers to their former prominence.

Under News Corp's leadership, the Dodgers have failed to make the playoffs and have been hampered by unwise financial decisions. News Corp's resources were supposed to bolster the team, but the company has caused more embarrassment than anything.
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