More press coverage? Celebrity bling? No way, Joselito. According to Fortune’s own Dan Primack private equity is circling the Los Angeles Dodgers, but not because of baseball. Private equity is no stranger to professional sports. Several NBA teams are owned by private equity funds, while Bain Capital once considered buying the entire NHL. So it wasn't too surprising to read that several private equity firms are looking to get involved in the Los Angeles Dodgers auction.
It is true that private equity firms have been talking to Dodgers bidders, but not because they want to be minority owners in the baseball franchise. A source familiar with the situation says that the goal is to own -- or partially own -- the Dodgers' media assets.
Fox currently has broadcast rights to the Dodgers through the end of 2013, and is one of the reported bidders. Once 2013 ends, however, the Dodgers could form their own regional television network, similar to what the New York Yankees have with YES or the Boston Red Sox have with NESN. The only caveat is that the current Fox contract effectively prohibits the future creation of such a network if Time Warner, Comcast or ESPN is involved as an equity partner. That could be where private equity comes in -- as the money men to support Dodgers TV (or whatever the f it gets called)….
Find out more at http://finance.fortune.cnn.com/2012/03/02/what-private-equity-wants-with-the-dodgers/?iid=H_TS_News
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