04/06/12 5:35 PM ET
Filing hints at Dodgers' post-sale structure
By Ken Gurnick / MLB.com
"The Amended Plan of Reorganization, among other things, provides for the payment of all allowed claims of creditors in full, includes a substantial distribution for debtors' equity interest holder, and provides a solid foundation for the long term success of Los Angeles Dodgers and its affiliates," the team says in the filing.
The Dodgers emphasize the following: "The centerpiece of the Amended Plan is the agreement by Guggenheim Baseball L.P. to pay $2 billion to acquire the equity of the reorganized debtors. This agreement is the culmination of an auction process that was conducted over several months and reflects the highest and best bid generated by that process. The successful auction process attracted numerous prospective purchasers and numerous proposals, all of which confirmed the substantial value of the Dodgers, the media rights associated with the team, and Dodger Stadium."
According to the documents, Guggenheim Partners CEO Mark Walter will be the controlling partner, while longtime baseball executive Stan Kasten will be the president and chief executive officer. Former Lakers legend Magic Johnson is not listed in the documents, but he will have a small ownership stake and a large presence in the club's operations. Ned Colletti is listed as general manager, and Peter Wilhelm remains as treasurer and chief financial officer.
The purchase agreement calls for a cash payment of nearly $1.588 billion, the $412 million remainder of the purchase price being assumed debt, with a 10 percent down payment of $158 million. It also includes a non-disparagement clause, preventing the purchaser from engaging in conduct or making statements disparaging to outgoing owner Frank McCourt, his family or associates. McCourt, the team chairman, and vice chairman Jeff Ingram are required by the agreement to resign.
The purchase agreement still must be approved by Major League Baseball and the bankruptcy court, which has a hearing scheduled for April 13 and must assure debtors are paid from proceeds of the sale.
Ken Gurnick is a reporter for MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.