From "Economists: $1B for Dodgers is realistic" by Arash Markazi at ESPNLA.com:
A record price tag of $1 billion can be expected for the Los Angeles Dodgers, Dodger Stadium and the surrounding real estate, according to several sports economists following the team's upcoming sale.
"If you're talking about the asset value of the Dodgers franchise, the stadium, the parking lots and the surrounding acreage, I think a number in neighborhood of $1 billion is reasonable," Andrew Zimbalist, a professor of economics at Smith College, said last week. "I believe the reasonable or final offer will be $900 million to $1 billion."
One of the biggest reasons for the Dodgers' value is all the undeveloped real estate surrounding Dodger Stadium, which sits on 275 acres of land that is largely used for parking.
Three years ago, Dodgers owner Frank McCourt outlined a $500 million project around the stadium that would include parking structures, a Dodgers museum and a plaza behind center field with year-round shops and restaurants. Such a sweeping project could add more revenue streams for the future owners and potentially raise the price of the team.
"As a comparison, the Chicago Cubs went for $845 million two years ago, and I think most people looking at the revenue streams between the Dodgers and Cubs would have them being pretty comparable," said Victor Matheson, a sports economist and an associate professor of economics at the College of the Holy Cross in Worcester, Mass.
"It's probably more in favor of the Dodgers because they have such a huge area that could also be redeveloped. The Cubs' deal includes Wrigley Field, but that's tied into the city grid there so there's only so much you can do. The Dodgers really do have space there for other projects."
Think Jamie regrets settling for a measly $131 million?
photo by Brian Vander Brug/LA Times