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Dodgers Sales Numbers Don't Make Sense, Could Hurt Baseball
CNBC.com | March 06, 2012 | 03:46 PM EST

There are some very sophisticated business people bidding for the Los Angeles Dodgers. There's hedge fund mogul Stevie Cohen, who is worth $9 billion and there's Stan Kroenke, who already owns the the Denver Nuggets, the Colorado Avalanche, the St. Louis Rams and English soccer club Arsenal.

One clearly knows how to make money. The other knows how sports businesses work.

And yet, no one I talk to can figure out how there's money to be made if the Dodgers are sold for more than $1.3 billion, as has been speculated.

The team itself is worth about $800 million and the land is worth another $200 to $300 million. One insider who has seen the financials confirmed that valuation.

But former owner Frank McCourt is intent on keeping that land.

So where is the additional $500 to $700 million coming from? There's sponsorship money and ticket money and in good years, that could mean a $50 million swing in revenue.

Some will say it's in the TV money, but it's not there either. A deal with a network would yield about $150 million a year, but if the Dodgers start a regional sports network, they'll likely be sharing at least 25 percent of the overall revenue, which would affect the rights fee.

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