Guggenheim Baseball Management’s
unprecedented use of over $1 billion in insurance and hedge fund money
to buy the Los Angeles Dodgers and 260 acres of real estate near the
baseball team’s ballpark in 2012 seemed very risky to me. But by my count, despite the team’s huge losses
due to its record-high payroll, GBM is ahead in the score because the
value of the team has increased by $500 million over the past four
years. And my valuation is conservative because it does not account for
the appreciation of the $300 million valuation applied to the real
estate as part of the $2.3 billion enterprise value of GBM’s purchase.
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