Bidding for LA Dodgers Moves onto Round Two

The Los Angeles Dodgers are the hottest piece of property available for sale in all of America these days. The outgoing owner, Frank McCourt, put the team in bankruptcy last year once ends weren't being met then had a very public and very messy divorce later the same year from wife, Jamie.  Mr. McCourt must pay his wife a settlement of $131 million by April 30, the same day of his deadline to turn over the reins to its new owner.

Frank McCourt, a real estate developer from New England, purchased the Dodgers in 2004 for $430 million from Rupert Murdoch of News Corp.  The franchise is expected to fetch a price in the $1 billion range.  Over a dozen investment groups submitted bids for the franchise last week.  Two of those bidders were eliminated this past Friday.  Most notably, Mark Cuban, the owner of the Dallas Mavericks and a group led by Dennis Gilbert and Larry King.  Both Cuban and Gilbert recently failed in their attempt to purchase th Texas Rangers in 2010.  

Click to view a slideshow of all the bidders.

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At least "eight bidders advanced to the second round Friday, including a group led by" Basketball HOFer Magic Johnson and former Nationals and Braves President Stan Kasten, and another group headed by L.A. developer Rick Caruso and former MLB Exec VP/Baseball Operations Joe Torre.

SAC Capital Advisors Founder Steven Cohen, former Dodgers Owner Peter O'Malley and Rams Owner Stan Kroenke "also are believed to have advanced, as well as a joint bid between" Shamrock Holdings President & CEO Stanley Gold and the Disney family.

It is "uncertain how many parties did not make the cut." The remaining players "will be investigated by Major League Baseball, with each bidder paying $25,000 to cover the cost of an MLB investigation" (L.A. TIMES, 1/28).

Shaikin also notes Colony Capital Founder, Chair & CEO Tom Barrack has partnered with F1 Grand Prix of America Exec Chair and former YES Network Chair & CEO Leo Hindery "on a bid for the Dodgers." Hindery and Clarion Capital Managing Partner Marc Utay "lead one of at least eight groups that survived Friday's first cut among the bidders." That group "had been one of the two prospective buyers known to remain in the bidding without a significant tie to Los Angeles" (L.A. TIMES, 1/30).

Shaikin noted Beverly Hills developer Alan Casden is thought to be among the "remaining bidders," while a group led by former MLBers Steve Garvey and Orel Hershiser "is out of the running." Meanwhile, Shaikin noted Penguins co-Owner Ron Burkle "did not bid on the Dodgers, but he might still play a part in the future of the team." A source said that with the opening round of bidding concluded, Burkle "might consider backing groups led by Rick Caruso or Stanley Gold" (L.A. TIMES, 1/29).