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Dodgers sold to Magic Johnson's group for 2B

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Dodgers sold to Magic Johnson's group for 2B

From Comcast SportsNet
NEW YORK (AP) -- One Los Angeles institution is buying another. A group that includes former Lakers star Magic Johnson and longtime baseball executive Stan Kasten agreed Tuesday night to buy the Dodgers from Frank McCourt for a record 2 billion. The price would shatter the mark for a sports franchise. Stephen Ross paid 1.1 billion for the NFL's Miami Dolphins in 2009, and in England, Malcolm Glazer and his family took over the Manchester United soccer club in 2005 in a deal then valued at 1.47 billion. Mark Walter, chief executive officer of the financial services firm Guggenheim Partners, would become the controlling owner. The deal, revealed about five hours after Major League Baseball owners approved three finalists for an intended auction, is one of several steps toward a sale of the team by the end of April. It is subject to approval in federal bankruptcy court. "I am thrilled to be part of the historic Dodger franchise and intend to build on the fantastic foundation laid by Frank McCourt as we drive the Dodgers back to the front page of the sports section in our wonderful community of Los Angeles," Johnson said in a statement. As part of the agreement, the Dodgers said McCourt and "certain affiliates of the purchasers" would acquire the land surrounding Dodger Stadium, including its parking lots, for 150 million. "If they invested that much money, I'm sure they'll invest to get us a winner," said Tommy Lasorda, the Dodgers' retired Hall of Fame manager. "I wish them all the luck, and I admire them. I know both of them. I know Magic from the day he came into Los Angeles as a basketball player for the Lakers." The acquiring group, called Guggenheim Baseball Management, has several other investors, among them Mandalay Entertainment chief executive Peter Guber, Guggenheim Partners president Todd Boehly and Bobby Patton, who operates oil and gas properties among his investments. Kasten is the former president of the Atlanta Braves and Washington Nationals. "I am truly honored to have partnered with such talented individuals and to be associated with the Dodgers organization," said Walter. "We look forward to building upon the legacy of the Dodgers and providing long-term stability to one of the most revered franchises in baseball." The 52-year-old Johnson played 13 seasons for the Los Angeles Lakers, winning five NBA championships and three MVP awards in a Hall of Fame career. He retired from the NBA in 1991 after being diagnosed with HIV, the virus that causes AIDS. He briefly came out of retirement during the 1995-96 season and had a short stint coaching the Lakers. Since leaving basketball, he has been very successful in business, investing in movie theaters, a production company and restaurants. He has also been an activist in the fight against HIV. "I'm upset he didn't cut me in," current Lakers star Kobe Bryant said. "I'm going to have to talk to him about that." McCourt paid 430 million in 2004 to buy the team, Dodger Stadium and 250 acres of land that include the parking lots, from the Fox division of Rupert Murdoch's News Corp., a sale that left the team with about 50 million in cash at the time. The team's debt stood at 579 million as of January, according to a court filing, so McCourt stands to make hundreds of millions of dollars even after a 131 million divorce payment to former wife Jamie, taxes and legal and banking fees. Kasten is expected to wind up as the team's top day-to-day executive. The other two finalists were: -- Stan Kroenke, whose family owns the NFL's St. Louis Rams, the NBA's Denver Nuggets, the NHL's Colorado Avalanche and Major League Soccer's Colorado Rapids. He also is majority shareholder of Arsenal in the English Premier League. -- Steven Cohen, founder of the hedge fund SAC Capital Advisors and a new limited partner of the New York Mets; biotechnology entrepreneur Patrick Soon-Shiong; and agent Arn Tellem of Wasserman Media Group. It remains to be seen whether Major League Baseball will challenge the deal in U.S. Bankruptcy Court in Delaware, where the case is before Judge Kevin Gross. Under an agreement reached by MLB and McCourt in November, a private auction was to be held among the finalists and McCourt was to select the winner by Sunday. The sales agreement is to be submitted to the bankruptcy court by April 6, ahead of a hearing seven days later, and the sale completed by April 30, the day McCourt is to make a divorce settlement payment. "This agreement with Guggenheim reflects both the strength and future potential of the Los Angeles Dodgers, and assures that the Dodgers will have new ownership with deep local roots, which bodes well for the Dodgers, its fans and the Los Angeles community," McCourt said in a statement. The acquiring group would gain the ability to sell the Dodgers' local broadcasting rights starting with games in 2014. The Guggenheim group likely would use money gained from the rights sale -- or from the team's own network with outside investment -- and use those funds to pay down the acquisition debt. "The amount of leverage is a big question," said Marc Ganis, president of the Chicago-based consulting firm Sportscorp, which is not involved. "The likely scenario is that they have a broadcasting deal in mind so that they pay up now and pay themselves down from a big broadcasting upfront payment. "The problem with this strategy is that the more paid upfront by the broadcast deal, the less money is available for team operations. The more debt they take on, the more debt service is required, the less money that's available for team operations. With the only beneficiary being the man walking out the door. A challenging result that baseball tried to avoid." The current record for a baseball franchise is the 845 million paid by the Ricketts family for the Chicago Cubs in 2009. The Dodgers filed for bankruptcy protection in late June, just days before the team was expected to miss payroll. The filing came after baseball Commissioner Bud Selig refused to approve a 17-year agreement between the Dodgers and Fox's Prime Ticket subsidiary that would have been worth 2 billion or more. MLB feared McCourt would use about half of an intended 385 million cash advance to fund his divorce. Los Angeles finished third in the NL West last season at 82-79, had just three sellouts and fell short of 3 million in home attendance in a full season for the first time since 1992. There was some concern among MLB officials about the financing of the Walter bid because some of the money was coming from insurance companies that are owned by Guggenheim. A person familiar with the baseball owners' teleconference Tuesday said several team owners voiced that during the call. The person spoke on condition of anonymity because MLB did not make any announcements. "The problem there is a fundamental problem as you go into an auction, and that is the absolute reliance on other people's money," said Ganis. "It means a lot of regulators. It means either shareholders or, depending on which insurance companies it's coming from, the insured themselves." Kasten was hired as legal counsel of the Braves and the NBA's Hawks in 1976, and three years later became the NBA's youngest general manager at 27. He was promoted to president of the Braves and Hawks in 1986 and also became president of the NHL's Thrashers in 1999. After leaving the Atlanta teams in 2003, he became president of the Washington Nationals from 2006-10. Dodgers general manager Ned Colletti recently had dinner with Kasten in Glendale, Ariz., the team's spring training home. "He's very successful, very driven, relentless in his pursuit of excellence," Colletti said. "He's seen a lot and he's won a lot." The Dodgers have won six World Series titles but none since 1988, when they were still owned by the O'Malley family that moved the team from Brooklyn to California after the 1957 season. Fox bought the team in 1998, then sold it to McCourt. Colletti, whose baseball moves appear to have been constricted because of the team's financial problems, says the sale announcement brings "clarity." "It's time to turn the page and move toward a new chapter in the history of the Los Angeles Dodgers," he said.

Jabari Parker unafraid of history, expectations that come with Chicago's homegrown stars: "There's no fear"

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USA TODAY

Jabari Parker unafraid of history, expectations that come with Chicago's homegrown stars: "There's no fear"

The Chicago sunlight followed Jabari Parker as he walked through the East Atrium doors of the United Center, facing Michael Jordan’s statue before meeting with the media, introduced as a Chicago Bull for the first time.


For his sake, the brighter days are ahead instead of to his back as he’ll challenge the perception of being the hometown kid who can’t outrun his own shadow.


Parker re-enters Chicago as the No. 2 pick in the draft that the Milwaukee Bucks allowed to walk without compensation despite holding the cards through restricted free agency, damaged goods on the floor but not giving the Bulls a discount to don that white, red and black jersey he’s always dreamed of wearing.


“There were other teams but as soon as I heard Chicago, I just jumped on it,” Parker said.


It took a two-year, $40 million deal (2019-20 team option) to get Parker home, along with the selling point that he’ll start at small forward—a position that’s tough to envision him playing with on the defensive end considering three of the game’s top six scorers occupy that space.
It was a dream come true for his father, Sonny Parker, and high school coach, Simeon Academy’s Robert Smith, who both couldn’t hide their joy following the first question-and-answer session with the media.


“This is where he wanted to be,” Sonny Parker said. “His family’s happy, the support is there. All I know is the United Center will sell out every game. He can’t wait.”


“Normally guys get drafted here. He signed to come here. He had a couple offers from other teams but he wanted to come here.”


The biggest examples of Chicagoans who arrived with outsized expectations for this franchise had varying results, but Derrick Rose and Eddy Curry both came away with scars of sorts that had many wondering why any hometown product would willingly choose to play for the Bulls.


The risk seems to far outweigh the reward; the emotional toll doesn’t seem worth the fare. And with the roster makeup not being ideal for Parker, no one could blame him for going to a better situation—or at least one more tailored to his skills rather than his heart.
“I think every situation is different. Derrick was excelling,” Bulls executive vice-president John Paxson said to NBCSportsChicago.com. “MVP of the league in his hometown before the injury. Eddy was just a young kid who didn’t have the savvy Derrick had. I think every situation is different. Jabari is such a grounded, solid person that he’s gonna be just fine.”


“You don’t have to spend a whole lot of time with him to figure out he’s got it together. He knows who he is. Comfortable in his own skin. A quiet guy. Hopefully he’ll thrive here. The goal is it works great for him and works great for us.”


It seemed like he was bred to be a pro—and not just any pro, but the type Chicago demands of its own when a covenant to play 82 nights a year has been reached. If the constant prodding from his father didn’t break his façade, or older brother Darryl doing everything he could to coax emotion from the most gifted of the Parker clan couldn’t do it, two ACL surgeries on his left knee may pale in comparison.


The numbers from Parker’s recent stint with the Bucks don’t bear it out, but Smith sees a player who’s back on track to being what his talent has always dictated he should become.


“Even watching him work out lately, it’s like whoa,” Smith said. “But of course, everything with Chicago period you have to be cautious. With his family and the support system he has, this thing is about winning basketball games and giving back to the community.”


“He’s had that (target) on his back since he stepped on the court at Simeon, coming behind Derrick and being one of the top five players as a freshman and No. 1 player as a junior. I don’t think it’s a huge problem, it can help him a little bit. If he has those moments if something doesn’t go right, he has someone to help him.”


Parker is more known for his restarts than his unique skill set in his young career, but even at 23 years old speaks with a sage of someone 20 years his senior, unwilling to tab this portion of his journey as a fresh start.


After all, it would be easy to envision his career beginning from the moment he left Simeon as a phenom followed by his one season at Duke—having two games where he totaled just 24 minutes with just two points to start the Bucks’ first-round series against the Boston Celtics isn’t typical of a star’s story if he sees himself that way.


“I don’t. I don’t want to forget all the hard work I had,” Parker said. “To forget I hurt myself and came back is to discredit my success. That in of itself is something outside the norm. I want to always remember the setbacks and failures I’ve had in my career so far. I want to use that as a sense of motivation.”


Bringing up his awkward pro beginnings in Milwaukee, where Giannis Antetokounmpo’s ascension to an unexpected strata mirrored thoughts he might’ve had of himself before his injuries, didn’t cause him to growl.


“I’ve never got jealous a day in my life. That’s why it wasn’t hard because I wasn’t jealous,” Parker said to NBCSportsChicago.com. “My journey is my journey. I gotta be proud of that and be patient. I took that and I move forward.”


The mention of his defense didn’t make him defensive, either, as he definitively pointed out the truth as he saw it, that today’s game is far more offensive-minded than the bruise-fests of the previous decades. Telling by his words in subsequent interviews, the best defense is a great offense and when he’s right, there aren’t many who can get a bucket as easily and with as much diversity as himself.


The only time Parker broke serve was at the notion he’d be following in the footsteps of Rose’s perceived failures, the setbacks Rose suffered when his knees began to fail after reaching inspiring heights players like Parker wanted to emulate.


At the podium for all to see, he corrected a question formed around Rose’s “rise and fall”, a sound byte copied and pasted by a couple Chicago-bred NBA players on social media in support of Parker’s words and feelings.


“Derrick had no lows. He didn’t. He still maintained. Derrick’s a legend, no matter what…no rise and falls. Injuries are part of life. Derrick is one of the best icons in Chicago. He accomplished his duty already.”


And later, he wanted to set the record straight again, drawing a line from how the media has presented Rose compared to how the people of Chicago see him, and vice-versa.


“We didn’t turn on Derrick, the media (did),” Parker told NBCSportsChicago.com. “We’re hometown. I speak for everybody, we love our hometown.”


The love of Chicago meant more than the prospect of not being able to live up to a glorious prep past, even though he should be well aware wanderlust can turn to villainy in a heartbeat—or the wrong step.


“There’s no pressure for me,” Parker said to NBCSportsChicago.com. “I’m just happy I get to play with some young guys, and I don’t harp on the negative. Anybody and everybody is gonna have an opinion. I value more my dreams than their opinions.”


And the dreamer steps forward, with a confident gait, eyes wide open and a city hoping it doesn’t repeat the same mistakes of its past.


“There’s no fear,” Parker said. “I haven’t faced any other pressure than bouncing back. I’m back on my feet and moving on.”


“When you struggle more, you succeed more.”

Sports Talk Live Podcast: With Jabari Parker in the mix, are the Bulls playoff contenders?

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USA TODAY

Sports Talk Live Podcast: With Jabari Parker in the mix, are the Bulls playoff contenders?

David Haugh, Patrick Finley and KC Johnson join Kap on the panel. Jabari Parker is officially a Chicago Bull. So does that make the Bulls a playoff team? And who will play defense for Fred Hoiberg’s young team? Vincent Goodwill and Mark Schanowski drop by to discuss.

Plus with Manny Machado now a Dodger, are the Cubs no longer the best team in the NL?

Listen to the full episode here or via the embedded player below: