Los Angeles Dodgers owner Peter O'Malley is close to a deal to sell his team and Dodger Stadium to media mogul Rupert Murdoch for more than $350 million, sources close to the talks said Monday, and O'Malley confirmed that he asked Major League Baseball to approve the negotiations.
O'Malley said he is negotiating exclusively with the media conglomerate controlled by Murdoch and has asked baseball's executive council for permission to continue the talks, in keeping with league rules governing ownership changes. Approval is expected today and a deal could be presented next month for league approval.
For Murdoch's News Corp., which owns the Fox television network and regional cable channels, purchase of the Dodgers would provide the foundation for a Los Angeles-based sports juggernaut that could eventually include a new pro football team and possibly an ownership stake in a local basketball franchise, according to sources close to the company. Under terms of the deal, Murdoch would pay about $400 million for Dodger Stadium and the team.
News Corp.'s bid is part of a growing trend toward corporate ownership of sports properties, putting the media group into the same league as rivals Walt Disney Co. and Time Warner Inc., which each control two professional sports teams.
Corporate ownership is on the rise because sports teams, by themselves, do not generate huge profits. But broadcasting games and selling sports merchandise can make ownership by media companies a gold mine.
Analysts say News Corp. would aggressively market the Dodgers with increased television exposure, merchandising deals and a Dodger Stadium upgrade that would include lucrative luxury boxes that are a standard feature at many venues.
A final deal with News Corp. could be presented for approval at the league owners' quarterly meeting June 10-12 in Philadelphia. The deal would require 75% approval among owners.
Most likely, however, transfer of ownership would take 45 days to three months--until July or August. At that time, baseball owners are expected to meet again for an update on the search for a new commissioner.
"We're in the fifth month of what we expected to be a six-month process and I am pleased that it has not been a distraction to date. For that I am grateful," O'Malley said in a statement Monday.
Although sources indicated that Murdoch and O'Malley are close to a deal, O'Malley's future role with the team has not yet been discussed. O'Malley, president of the Dodgers for 27 years, and other key executives may remain as part of the management team.
