Magic Johnson’s group agrees to buy Dodgers for record price of $2 billion

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UPDATE: Here’s the text from the press release, officially announcing word of the agreement between the two sides:

The Los Angeles Dodgers and Frank McCourt today announced an agreement under which Guggenheim Baseball Management LLC (“GBM”) will acquire the Los Angeles Dodgers for $2 billion upon completion of the closing process.  The purchasing group includes Mark R. Walter as its controlling partner, as well as Earvin “Magic” Johnson, Peter Guber, Stan Kasten, Bobby Patton and Todd Boehly.  Mr. McCourt and certain affiliates of the purchasers will also be forming a joint venture, which will acquire the Chavez Ravine property for an additional $150 million.

The Los Angeles Dodgers stated, “This transaction underscores the Debtors’ objective to maximize the value of their estate and to emerge from Chapter 11 under a successful Plan of Reorganization, under which all creditors are paid in full.”

Frank McCourt stated, “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.  We are delighted that this group will continue the important work we have started in the community, fulfilling our commitment to building 50 Dream Fields and helping with the effort to cure cancer.”

Earvin “Magic” Johnson stated, “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.”

11:08 PM: Whoa. Dennis K. Berman of the Wall Street Journal reports that Johnson’s group have agreed to purchase the Dodgers for $2 billion. One would think this offer would be good enough to include the parking lots, right?

The good news is that Dodgers fans will have the most popular sports figure in Los Angeles as part of the new ownership group, but McCourt is going to walk away from this thing filthy, stinkin’ rich.

11:06 PM: It’s Showtime.

Details are scarce at the moment, but Ken Gurnick of MLB.com reports that the Dodgers have reached an agreement to be sold to the group led by Magic Johnson and longtime MLB and NBA executive Stan Kasten.

MLB owners had approved the groups led by billionaire hedge-fund manager Steve Cohen and St. Louis Rams owner Stan Kroenke, but outgoing owner Frank McCourt has apparently identified Johnson’s group as the winning bidder. No word yet on the exact terms, but most estimates had the sale price to exceed $1.5 billion, which would establish a new record for a North American sports franchise.

Kevin Kiermaier on Rays’ recent moves: “I am 100 percent frustrated and very upset.”

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On Sunday, we heard from former Ray and current Giants third baseman Evan Longoria. The Rays recently traded pitcher Jake Odorizzi to the Twins for a prospect and designated All-Star outfielder Corey Dickerson for assignment, which didn’t make a whole lot of sense outside of a cost-cutting perspective. Longoria said, “I just kind of feel sorry for the Rays fan base.”

Today, we’re hearing from a current Ray: center fielder Kevin Kiermaier, who is set to enter his fifth full season with the club. Via Marc Topkin of the Tampa Bay Times, Kiermaier said, “I am 100 percent frustrated and very upset with the moves. No beating around the bush. It’s one of those things that makes you scratch your head, you don’t know the reasoning why. And then you see the team’s explanation and still it’s just like, okay, well, so be it.”

Longoria — formerly the face of the franchise — was traded to the Giants in December and the Rays continued to subtract with their recent moves involving Odorizzi and Dickerson. Odorizzi has a career 3.83 ERA in what has been a solid, if unspectacular, career. Dickerson put up an All-Star season, posting an .815 OPS with 27 home runs in 150 games. Moving either player was not done to fix a positional log jam. In fact, with Odorizzi out of the picture, the Rays are planning to use a four-man starting rotation for the first six-plus weeks of the season, Topkin reported on Sunday. Dickerson’s ouster simply opens the door for Mallex Smith, who posted a .684 OPS last year, to start every day in the outfield.

The Rays got markedly worse after going 80-82 last season. They saved a few million bucks jettisoning Odorizzi and Dickerson. And Rays ownership still wants the public to foot most of the bill for their new stadium.

When it was just one small market team pinching pennies, it was fine. But now that more than half of the league has adopted penny-pinching principles popularized by Moneyball and Sabermetrics (with the Rays among the chief offenders), the game of baseball has become markedly less fan- and player-friendly. This offseason has been less about players signing contracts and changing teams in trades — which helps build excitement and intrigue for the coming year — and more about front offices doing math problems concerning the $197 million competitive balance tax threshold and other self-imposed monetary restraints. Fun. Kiermaier is right to be upset and he’s very likely not alone in feeling that way.