A group of South Korean investors has expressed interest in purchasing a piece of the Los Angeles Dodgers, and, according to sources, the team's ownership group is in talks with them.
Bill Shaikin of the Los Angeles Times reported last week that "a person with direction knowledge of the discussions" said the Dodgers are in negotiations with the South Korean investor group to sell a minority ownership share of the team. He noted there is "zero" chance the ownership group would surrender control of the team and talks between the two sides are "progressing," but it's unknown what stage the negotiations are in.
The source spoke on condition of anonymity because the talks have yet to be confirmed publicly.
Although Shaikin said none of the team's five individual investors, who include controlling owner Mark Walter as well as partners Todd Boehly, Bobby Patton, Peter Guber and Magic Johnson, is planning to sell his share in the potential deal, The Korea Joongang Daily reported otherwise. This South Korean newspaper was the first to break news of the negotiations.
"The consortium [of Korean investors] was formed when one of the five joint owners tried to sell his shares," said a financial investment official, via the newspaper. "The deal is expected to be worth about 400 billion won ($370 million), which is 20 percent of the total cost three years ago, and is set to be concluded before the season starts in April."
However, Steve Dilbeck of the Los Angeles Times notes that the sale could be coming from the $1.2 billion invested in the team by the Guggenheim Partners insurance funds, which are controlled by Walter. Guggenheim Baseball Management purchased the Dodgers for $2.15 billion in 2012 and valued the franchise at $3 billion in December of 2012, so that would mean 20% of the team right now would be worth $600 million, not $370 million.
So perhaps the report out of South Korea had their numbers wrong, but it's unclear right now because the Dodgers' are not acknowledging any questions directed towards the matter. It is bizarre that a group of investors would potentially be willing to sink in $600 million and not have control of their investment, but the Dodgers are "probably the most popular MLB club among Koreans because of its two Korean pitchers, Park Chan-ho and Ryu Hyun-jin," writes Korea Joongang.
We'll be keeping a close eye on these discussions if/when they progress into the latter stages.
