McCourt cuts deal to buy Dodgers

By Thomas C. Palmer Jr., Globe Staff, 10/11/2003

South Boston real estate owner Frank H. McCourt Jr. has reached an agreement in principle with News Corp. to buy the Los Angeles Dodgers baseball team, along with 276 acres of land around Dodger Stadium and team training facilities in Florida and the Dominican Republic.

McCourt, who failed in two earlier attempts to buy Major League teams, including the Red Sox, will head an investment group that reportedly offered more than $400 million for the team and the related properties.

Neither the terms of the deal nor the identities of McCourt's investment partners were disclosed in a statement made by both parties last night.

The deal is subject to Major League Baseball approval.

"We feel enormously privileged and excited about this opportunity to lead the Dodgers to continued excellence across every level of the organization," McCourt said in a statement.

"When approved, our most immediate goals are returning the Dodgers to the World Series and making each fan's experience at Dodger Stadium the absolute best that it can be." The joint statement noted that, if the deal is approved, McCourt plans to be active in day-to-day operations of the team while directing operations of his company in Boston. Representatives of McCourt's development firm, McCourt Co., have said that an agreement to buy the Dodgers would not affect the company's plans to find a development partner and build on McCourt's 25 valuable acres on the South Boston Waterfront.

McCourt's wife and business partner, Jamie McCourt, is general counsel of McCourt Co.

Game Plan LLC of Boston advised McCourt in the transaction. Because the sale must be approved by the league, there is still a possibility other buyers could end up with the storied but money-losing franchise.

Jeff Smulyan, former Seattle Mariners owner and chief executive of Emmis Communications Corp., has not withdrawn a bid of $360 million, according to the Los Angeles Times.

Smulyan, joined by a group of investors that includes former Chicago White Sox executive Dennis Gilbert, is viewed by some baseball owners as a popular choice. However, Smulyan's interest in the Dodgers hinged on the inclusion of six television stations from News Corp.

The agreement reached by the McCourt group does not include television broadcast rights. News Corp's Fox Sports unit will retain regional rights to the games.

Alan I. Casden, a Southern California developer, also remains interested in buying the team, despite public comments to the contrary, the Times has reported. But the Times said yesterday that McCourt and partners would pay $430 million, though unspecified discounts could lower the price.

McCourt, 49, wanted to buy the Boston Red Sox in 2001 but eventually dropped out of the bidding. He also was interested in purchasing the Anaheim Angels this year, but Arizona businessman Arturo Moreno bought them for $184 million.

News Corp. bought the Dodgers from Peter O'Malley in 1998 for $311 million, and the team has been losing money since.

Material from Globe wire services was used in this report.