Frank McCourt turned a $1.278-billion profit on sale of the Dodgers

frank-mccourtFormer Dodgers owner Frank McCourt embodies the American Dream. He first founded the McCourt which made him a ton of money. Money that he used to buy the Los Angeles Dodgers in 2004.

McCourt owned the Dodgers from 2004 until March 2012 when he unloaded the Dodgers for a reported two billion dollars. The rub here was that before selling the team, McCourt filed for Chapter 11 bankruptcy citing that he couldn’t allow MLB Commissioner Bud Selig to “knowingly and intentionally be in a position to expose the Dodgers to financial risk any longer.”

On top of the bankruptcy filing, McCourt was in the middle of a nasty divorce with his wife Jamie which resulted in a judge forcing the sale of the franchise and Jamie walking away with $130 million.

With all of this going on, one would think that the McCourt’s financial wherewithal could be in danger. But according Bill Shaikin of the Los Angeles Times, Frank McCourt had the last laugh in all of this; to the tune of $1.278 billion in profit.

McCourt sold the Dodgers for $2.15 billion last year in a transaction in which Guggenheim Baseball Management bought the team, Dodger Stadium and a 50% stake in the parking lots surrounding the stadium. McCourt retained a 50% stake in the parking lots.
As part of the transaction, Guggenheim assumed $412 million in team debts, according to documents filed in U.S. Bankruptcy Court. After subtracting tax payments and debt assumption from the purchase price, McCourt turned a $1.278-billion profit on the sale of the Dodgers.

And that folks is how the American Dream is lived.

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