Magic Johnson has once again proven that not all athletes are doomed for financial catastrophe. As we saw with Allen Iverson a few weeks ago and just yesterday with Dennis Rodman, there seems to be a disconnect between earning a significant amount of money as a professional athlete, and setting up a financial plan that ensures a strong future. Magic has successfully navigated this process and I hope that Lebron, Dwayne, Carmelo and the rest of the younger players, pay attention to Magic or seek his counsel.
As you will see below, financially this is a major deal. I am extremely proud of Magic! I believe he has just laid a brick that will not only solidify his financial future, but he's truly embedded his legacy into professional sports. This will supersede anything he ever did on the basketball court, in my humble opinion.
From The Wall Street Journal:
With a bid of $2.15 billion, including the surrounding land, Mr. Johnson, controlling partner Mark Walter and partners Peter Guber, Stan Kasten, Bobby Patton and Todd Boehly beat out a group of some of the wealthiest businessmen in the country to land a team that is one of Major League Baseball's flagship franchises. The sales figure shatters the previous record sales price for a U.S. sports franchise, Steve Ross's purchase of the Miami Dolphins for $1.1 billion three years ago.
But buying the Dodgers now comes with a unique opportunity to launch a potentially lucrative regional sports network in the country's second-largest market, or sign a new local broadcast deal with the current broadcaster, News Corp.'s Fox unit, which has already offered the team a 17-year extension valued at nearly $3 billion. (News Corp. also owns The Wall Street Journal).
The sales process was led by Blackstone LP, the New York-based investment advisory firm, which held the auction Tuesday evening, just hours after Major League Baseball approved three finalists in the bidding, allowing current owner Frank McCourt to accept the highest and best offer.
Mr. McCourt filed the team for bankruptcy protection in June amid a deepening cash crisis and an ongoing feud with Major League Baseball Commissioner Bud Selig.
The deal allows Mr. McCourt to enter into a joint venture with the new owners on the land surrounding the stadium.
This deal is still in need of a final stamp of approval from the US Bankruptcy court due to prior proceedings, but many in the financial community anticipate this closing with no problem.
Has Magic Johnson taught us anything about building and securing wealth?
Are you excited for the rebirth of the Los Angeles Dodgers?
Any Larry David Fans on deck who recall the episode that played out the story of Frank McCourt, his divorce and loss of the Dodgers?
Los Angeles Dodgers Owner vs. Magic Johnson the Basketball Player - Who Wins?
