Over at the New York Times’ Deal Book blog, Andrew Ross Sorkin notes that the sale of the Dodgers to the group led by Magic Johnson — but really controlled by Guggenheim Partners’ Mark Walter — is being financed with insurance policy dough:
In addition to their own cash, Mr. Walter plans to use money from Guggenheim subsidiaries that are insurance companies — some state-regulated — to pay for a big chunk of his purchase of the Dodgers. Guggenheim controls Guggenheim Life, a life insurer, and Security Benefit, which manages some $30 billion, among others.
Using insurance money — which is typically supposed to be invested in simple, safe assets — to buy a baseball team, the ultimate toy for the ultrarich, seems like a lawsuit waiting to happen.
Sorkin explains that this is especially problematic given what seemed to be a significant overpay for the team and given that Walter has said that he’s not too concerned about immediate profitability. What of the fiduciary duties to the policy holders, he wonders.
While Sorkin seems pretty alarmed by this, he later makes mention of the fact that long-term holdings are not unheard of for insurance-backed investments. And this is where I think the alarm should stop. Remember: the Dodgers nearly quintupled in value during the McCourt years, despite historic mismanagement by Frank McCourt.
While I appreciate that there is a bubble element to elevating franchise values in any given short period of time, sports teams have proven to be a safer investment than just about anything over the past, well, forever. It’s like a license to print money.
Lost in the nifty base running by Dustin Pedroia that won Sunday’s game against the Rays, the Red Sox set a new major league record by striking out 11 batters in a row, per Peter Abraham of The Boston Globe. Starter Eduardo Rodriguez struck out the final six Rays he faced and reliever Heath Hembree struck out five Rays in a row after that. Tom Seaver had the previous consecutive strikeout streak of 10, set on April 22, 1970 against the Padres.
The Red Sox also set a team record with 23 strikeouts in total: 13 by Rodriguez, five by Hembree, one by Matt Barnes, and four by Joe Kelly. Per Abraham, that’s the most strikeouts in a 10-inning game since at least 1913 and the most in a game of any length since 2004.
For Rodriguez, Sunday marked the first double-digit strikeout game of his career. He has pitched quite well since returning to the rotation at the start of the second half. Over 13 starts, the lefty has a 3.10 ERA with a 70/23 K/BB ratio in 72 2/3 innings.
Dodgers second baseman Charlie Culberson delivered a walk-off solo home run in the bottom of the 10th inning, clinching the NL West for the Dodgers on Sunday afternoon. What a way to celebrate Vin Scully’s final home game behind the microphone.
The Dodgers were trailing 2-1 in the seventh inning, but shortstop Corey Seager tripled in a run to tie the game. Rockies outfielder David Dahl untied the game in the top of the ninth with a two-out solo home run off of Kenley Jansen. But Seager once again rose to the occasion, blasting a game-tying solo shot in the bottom half of the ninth against Adam Ottavino. That would set the stage for Culberson in the next frame.
Culberson, a former Rockie, came into the afternoon with a .591 OPS and zero home runs in 53 plate appearances. He finished the afternoon 3-for-5 with the homer.
It’s the fourth consecutive season in which the Dodgers have won the NL West. The Cubs have clinched the best record, which means they’ll play the winner of the Wild Card game. The Dodgers will play the Nationals in the NLDS. The Nationals have a 1.5-game lead over the Dodgers for home-field advantage, so both teams are still playing for something of importance in the regular season’s final week.