The previous estimates had the price of the Los Angeles Dodgers hovering around $1.2 to $1.5 billion. So when they sold for $2.15 billion -- straight cash, homey -- there were a lot of spit-takes. That's the previous estimate of the Dodgers plus the Forbes' valuation of the Cardinals thrown on top.
Economics Professor: Dodgers Deal ‘Makes No Sense’
And ESPN Los Angeles interviewed some economically minded people to see what they thought.
“It’s the craziest deal ever; it makes no sense. That’s why you saw so many groups drop out,” said Mark Rosentraub, a University of Michigan sports management professor. “I don’t get it. The numbers just don’t work.“Reading into the subtext of this vague quote, it appears as if Dr. Rosentraub is a little baffled by the deal.
“It was an extraordinary and surprising price,” said Andrew Zimbalist, a professor of economics at Smith College. “I rarely admit to not anticipating these things but I did not anticipate a $2 billion price ... At the end of the day, you have to question this deal.“Zimbalist is a well-known expert on baseball economics, and he goes on to explain that the Dodgers shouldn’t expect an initial spending spree on players, citing the necessary renovations for Dodger Stadium and the capital costs involved with the purchase.
Dodgers fans, though? Still giddy. Chad Moriyama says that fans shouldn’t care what the economists think right now:
In the end, I don’t actually care whether the owners are making a profit hand over fist or are breaking even or are in the red, all I care about is whether the Dodgers will be a better team on the field with them in charge.The important thing here, I think, is that everyone hates Frank McCourt.
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