The joint venture between the ownership group led by Magic Johnson and soon-to-be former Los Angeles Dodgers owner Frank McCourt for land around Dodger Stadium will not allow McCourt to reap any profits from parking revenue, according to three sources with knowledge of the situation.
The new ownership group, which entered into a $2.15 billion deal to purchase the Dodgers on Tuesday night, has control over the parking lots and land around the stadium. McCourt, the sources said, is in line to see future profit from the land only if it is developed in the future. However, according to two sources, there is no plan for development in the near future.
In other words, when Dodgers fans park their cars at Dodger Stadium, all of that money will go back to the team, not McCourt.
"Frank's not involved in the team, baseball, any of that," Mark Walter, CEO of Guggenheim Partners (who will become the controlling owner of the Dodgers once the sale is final and baseball's owners officially approve it), told ESPNLosAngeles.com on Wednesday.
"What Frank does have is an economic interest in land, but we control the parking and all the fan experience and that's of the utmost importance to us," Walter said.
The new ownership group paid McCourt $150 million for the land around Dodger Stadium, which contains the parking lots, and the right to control it. McCourt also received a share valued at $150 million to retain some of the land rights, but those rights are controlled by the new ownership group.
The land around the stadium was not part of the initial sale offering because it was held by one of McCourt's companies that did not seek bankruptcy protection.