Attanasio reportedly interested in buying the Dodgers

[MHgb]

Via Tom Krasovic, Senior MLB Writer at AOL Fanhousehttp://mlb.fanhouse.com/2010/09/09/twelve-thoughts-rockies-dynamic-hitting-duo-next-dodgers-owne/

 

Without leaving Milwaukee, Bud Selig may have a chance to assist West Coast baseball.

 

Heard this from a major league executive: Milwaukee Brewers owner Mark Attanasio has interest in becoming owner of the Dodgers, who could end up on the market after the McCourt ownership dispute is resolved. I was unable to reach Attanasio at his Los Angeles office, and I know Attanasio is still energetic about building the Brewers. But if commissioner Selig placed Attanasio in Los Angeles, advantage, Dodgers. It would also be a measure of redemption for Selig, who steered the McKooks into ownership of the Dodgers in 2004 The Brewers became relevant after Attanasio bought them from the Selig family for $180 million in late 2004.

What are the implications for the Brewers? Discuss.

[And That]

Any scenario that ends up with Mark Cuban owning the Brewers is fine with me.

 

Edit: I should add, I think this rumor coming to fruition has odds about as long as the Brewers making the playoffs this year.

[jjkoestler]

Any scenario that ends up with Mark Cuban owning the Brewers is fine with me.

Agreed. Sign me up.

[crewcrazy]

Haudricourt didn't take long to shoot this one down:

 

I was just told by a very good source that the internet report that Brewers owner Mark Attanasio has interest in the Dodgers is not true.

 

I know Krasovic is generally well respected, but you don't get much more vague than "heard this from an MLB executive." I'm sure Mark A has interest in the "yeah, it'd be cool" sense, but I doubt he'd ever seriously consider it.

[44Fishy]

from NBC's Hardball Talk
Could Brewers owner Mark Attanasio end up buying the Dodgers?

Craig Calcaterra

Sep. 9, 2010, 3:30 PM ET

http://hardballtalk.nbcsports.com/assets_c/2009/09/dodgers%20logo-thumb-155x156-2113.jpg

I passed along a bit of gossip some months ago that Frank McCourt would try to sell the Dodgers after the divorce case is said and done. The Dodgers tore me a new one over that -- Frank McCourt is king of kings, they said, and we should look upon his works, ye Mighty, and despair -- but the talk continues.

The latest incarnation: FanHouse's Tom Krasovic reports that Brewers owner Mark Attanasio may be interested in buying the Dodgers. He couldn't get any comment from Attanasio, of course, but Attanasio is based in Los Angeles, is viewed as a solid owner and at least one anonymous MLB executive thinks there could be something there. For his part, Krasovic thinks that Selig would love it if Attanasio rescued the Dodgers from the chaos the McCourts have created.

Just something to file away for that day when McCourt finally admits that he's in debt up to his eyeballs and has no way out of the woods but to sell the team.

[Invader3K]

Essentially if he bought the Dodgers, he would have to sell the Brewers first, right?

[endaround]

Essentially if he bought the Dodgers, he would have to sell the Brewers first, right?

Yes

[RightFieldCoder]

That he'd seriously consider buying his home town team for what may be it's cheapest price after this court battle? I'd find it highly likely he's interested in the Dodgers.

 

But this could just be hope from me that Cuban buys the Brewers.

[And That]

That he'd seriously consider buying his home town team for what may be it's cheapest price after this court battle? I'd find it highly likely he's interested in the Dodgers.

I'm quite sure that Attanasio would love to own the Dodgers. However, I'm guessing the simple Attanasio-L.A. connection is providing the impetus for this rumor, not any substantial behind-the-scenes manuevering. I could be wrong, though.

[jjkoestler]

MHBG - Thanks for posting this. It made my day (even if its not a reality). Who would be interested in buying the Crew besides Cuban?

[MJLiverock]

Mark had to leverge up as well as come up with partners just to buy a controlling share in the Brewers. I don't think he has enough coin to buy a controlling interest in the Dodgers even if he made a small profit on the sale of his Brewers stake. I can't find the exact percentage that Mark A. owns of the Brewers but Selig was listed at owning 28% of the team back when he controlled things with many of the same partners that own the team with Mark A.

 

The team was valued at $350MM by Forbes earlier this year, assuming Mark A. owns 1/3 he would have $115MM of the theoretical value before subtracting any debt he owes which is not an insignificant number. I would guess a third to half his purchase interest was debt financed if not more. The purchase price of $220MM for the Brewers times his one third ownership would imply he kicked in $72.6MM if half was debt financed, he borrowed say $36MM. Paying off the loan he would have $115MM minus $36MM or about $79MM of equity to roll into the Dodgers purchase.

 

The Dodgers value being kicked around by some is around $800MM+ which would require Mark A. to come up with some substantial money in order to buy a controlling interest. I just don't think he has that kind of money. Even if Mark owns more of the Brewers than in my example it isn't enough to come up with the $100's of millions he would need to buy the Dodgers outright and I doubt he wants to be a minority partner with little say in things after being the controllinig owner of a team.

[jjkoestler]

Mark had to leverge up as well as come up with partners just to buy a controlling share in the Brewers. I don't think he has enough coin to buy a controlling interest in the Dodgers even if he made a small profit on the sale of his Brewers stake. I can't find the exact percentage that Mark A. owns of the Brewers but Selig was listed at owning 28% of the team back when he controlled things with many of the same partners that own the team with Mark A.

 

The team was valued at $350MM by Forbes earlier this year, assuming Mark A. owns 1/3 he would have $115MM of the theoretical value before subtracting any debt he owes which is not an insignificant number. I would guess a third to half his purchase interest was debt financed if not more. The purchase price of $220MM for the Brewers times his one third ownership would imply he kicked in $72.6MM if half was debt financed, he borrowed say $36MM. Paying off the loan he would have $115MM minus $36MM or about $79MM of equity to roll into the Dodgers purchase.

 

The Dodgers value being kicked around by some is around $800MM+ which would require Mark A. to come up with some substantial money in order to buy a controlling interest. I just don't think he has that kind of money. Even if Mark owns more of the Brewers than in my example it isn't enough to come up with the $100's of millions he would need to buy the Dodgers outright and I doubt he wants to be a minority partner with little say in things after being the controllinig owner of a team.

Damn your logic, MJL. http://forum.brewerfan.net/images/smilies/smile.gif Mark Cuban is going to buy the Brewers.

[MJLiverock]

I forgot to add that he will lose 15% of his profit from selling the Brewers to Capital Gains tax, 20% if he sold next year and the Congress lets the tax rates jump up.

 

edit: not trying to be political one way or the other, just pointing out the tax rate will bite into any profits Mark A. would have from selling the team.

 

Cuban would be fun, he has tons of money but I would worry a bit about his meddling. He seems like the type of guy who would throw ridiculous contracts around to try and win right away.

 

 

edit: fixed the rates as JeffreyScott reminded me - - my mind apparently had already jumped the rates to the older levels.

[Patrick425]

This all sounds like a far fetched rumor but.....

From the beginning, Antanasio has appeared to be very genuine about how much he enjoys Milwaukee and not having any intentions of moving the team. He has done a lot of charitable work in the Milwaukee area and has never shown any signs of wishing he could relocate.

Does anyone else have any concerns about a new owner without ties to Milwaukee having desires to move the team? If not immediatley, then at some point down the road....say 5 or 10 years from now?

If I remember correctly Antanasio may have signed an agreement not to move the team for 30 years or something like that (it somehow tied to Miller Park). If there is such an agreement, would this agreement transfer to a new owner?

People can drool over the possibility of a new owner with deep pockets all they want. My main concern will always be the future of the Brewers in Milwaukee. I would rather have a lower payroll MLB team in Milwaukee than a high payroll team located somewhere else.

[And That]

Your logic is sounds, MJL, but I don't think it's impossible that Attanasio could muster the funds to be the principal owner of the Dodgers. This is why:

 

-While it's possible that the Dodgers could sell for $800 mil or more, Forbes had them valued at $724 mil going in to the season. It's unlikely, though again possible, that the quick sale of the club necessitated by the McCourt family problems could push the asking price even lower, maybe to $700 mil.

 

-It is entirely possible, given the large number of rich Dodgers fans, that Attanasio could put a group together where he'd be the principal owner, and only have a 25% stake (or less) in the team.

 

-A 25% stake of $700 mil would *only* be an investment of $175 mil. If he were able to get $75-$100 mil out of his Brewers stake (which I have no idea about, but it sounds plausible), I would think it would be not impossible for him to raise the remaining <$100 mil.

 

Again, I think you're right, but without knowing his personal finances, I wouldn't rule out his ability to muster the necessary funds to be lead owner of the Dodgers.

[dlk9s]

For those who fantasize about Mark Cuban buying the Brewers if Mark A. buys the Dodgers (and I don't blame you), why wouldn't Cuban just buy the Dodgers?

[Nottso]

I too think Cuban would be a lot of fun, but I would be saddened if Attanasio sold out. I like that he often has his wife and/or kids and/or other family members with him when he's at Miller Park. I like how he seems to just be kicked back, watching the ball game. I like that he has his father sing The Star Spangled Banner every year on opening day. And even though I'm pretty sure we have nothing in common whatsoever outside of Brewers baseball, I think I could enjoy having the Attanasios over for a cook-out.

[jwill535]

I dont think you could consider this selling out since it would be his home team. If it were the Seattle Mariners or Rockies for example, then yes I could see your argument.

[Patrick425]

I don't know...I guess you can count me in the minority of people that would not be thrilled about seeing Cuban own the Brewers.

 

Maybe he would be able to double the payroll and spend whatever money it takes to win a championship (or..maybe not..how many championships have the Mavericks won?). However, I would feel kind of "dirty" rooting for a team that wins because it's owner can afford to buy wins. Isn't that why many of us hate the Yankees? It's kind of like rooting for a guy in the 400 meter dash that gets a 200 meter head start. I know I sound like a bit of a martyr. I just think it's sad that we have to root for money in order to believe we have a chance to win on a consistent basis. The system has to change or it's going to self destruct eventually. Maybe not soon, but eventually.

[Nottso]

I dont think you could consider this selling out since it would be his home team. If it were the Seattle Mariners or Rockies for example, then yes I could see your argument.

 

When I said sold out I meant it in the most literal sense, as in he would be selling out his interest in the team.

[JoeHova]

My fear would be that Selig would engineer some deal that allows him to take control of the Brewers again after he leaves the commissioner's office. He's arranged sweetheart deals for his friends in the past so I wouldn't put it past him to work another one out for himself. For that reason, I hope Attanasio keeps the Brewers.

[thebruce44]

For those who fantasize about Mark Cuban buying the Brewers if Mark A. buys the Dodgers (and I don't blame you), why wouldn't Cuban just buy the Dodgers?

Because the owners wouldn't let him. Let's not let that stop us from imagining that they would somehow let him buy the Brewers though.

[jeffy]

I forgot to add that he will lose 20% of his profit from selling the Brewers to Capital Gains tax, 28% if he sold next year and the Congress lets the tax rates jump up.

 

I think it would actually be 15% this year and potentially 20% next year.

 

I would just see that as a reason for cashing on his gains this year, if he did have the chance to move on to a team that actually plays where he lives.

[WestSideWillie]

More truth to the rumor than many think. The majority of the Brewers ownership is from LA, all of Mark's Drexel Burnham Lambert partners, including Robert Beyer, Jean Chapus, Leon Wagner, et all from the Drexel Diaspora would mortgage everything, so to speak, to own the Dodgers. C;mon folks, Brewers vs Dodgers, LA vs Milwaukee, and you are dealing with the Brewers ownership from the West Coast, they would sell in a heartbeat---similar to Montreal, Boston, Florida, other places, where you can buy a team and then sell your old one ( See John Henry-owner of the Red Sox who used to own the Marlins, I believe).

Cuban as an owner of the Brewers? John Canning and the local investors are in place to pick up the franchise, and all are FOB, Friends of Bud, while the other owners return home to LA. Canning was rebuffed with the Cubs. The second place finisher in 2004, Dan Gilbert of the Cavaliers has no chance, since his bookmaking collegiate escapades has been made public. Bud could not allow an owner like that and keep Pete Rose out. Harris Turer would be Chief, Canning would be principal, The Dodgers returned to glory, Brewers still have local ownership with principals who know the market.

[owbc]

Rumors in order from least likely to most likely:

 

Brewers moving to Orlando

Mark Attanasio ditching the Brewers and buying the Dodgers

Prince Fielder resigns with the Brewers