Thursday, November 3, 2011

Mark Cuban and the Dodgers?

Mark Cuban (owner of the Dallas Mavericks) confirmed the rumors that he looked into buying the Los Angeles Dodgers. Mark considered the trade-offs in buy the team but decided that the asking price of $1 - $1.2 billion was too much for the team. He said, “At that price, I wasn’t interested” but he also said, “At the right price, I’m interested”. That price he says would have to be under $1 billion. His reasoning behind this is that he doesn’t feel like the Dodgers franchise isn’t worth twice what the Rangers were. The Rangers were sold with a bid of nearly $600 million dollars in August 2010. Cuban had to decide weather the amount of money he would gain in revenue from the team out weighed the costs of buying the team and he decided that at the current price it wasn’t worth it for him. McCourt (the current owner of the Dodgers) did reach an agreement with the MLB to sell the Dodgers, which would include the stadium and the surrounding real estate. The sale of the Dodgers will be court supervised to try and gain maximum value for the Dodger. Whoever buys the organization will have to consider the trade-offs of buy the team who has been in bankruptcy since last spring.

2 comments:

Brookie H said...

Mark Cuban is an amazing guy and an ambitious entrepreneur. The owner of the Dallas Mavericks who purchased the team in the early 2000's, finally won the NBA championship this past season. The Mavericks play in a great city and arena that is built to maximize the economic profits and competitive spirit of a NBA franchise. Mark Cuban is looking to expand his expertise into baseball. Lucky for the Los Angeles Dodgers(who are currently reorganizing under bankruptcy protection) that Mark Cuban has a self-interest in purchasing the Dodgers. With the many resources that the Dodgers would have to offer and the business experience Mark Cuban has, I think would be a winning combination.

Travis S said...

I agree with you that he is an ambitious entrepreneur. i would have to say though that I think he could turn the Dodger into a winning combination for him but he has to think of the trade-offs of spending all the money on the team in this economic state. It could take him years to regain the money spent and there might be other wants he has during this time period but he wont be able to buy them because he has such a big chunk of money tied up in the Dodgers.