The Angels and Mighty Ducks have been sold for $650M,
according to Peter Gammons on ESPN.com, who wrote in a story
posted yesterday afternoon that Disney has "completed the
parameters of a deal to sell the two clubs" to CA computer
software billionaire Henry Nicholas III. Gammons: "Nicholas
wants to build an indoor snowboard park adjacent to The
Pond, and wants to be a major player." One source close to
the talks: "He's got billions, and doesn't quibble over
small change" (ESPN.com, 8/30). A Disney spokesperson
declined comment on the report (DAILY VARIETY, 8/31).
WHEN TO WALK AWAY, WHEN TO RUN: In L.A., Bill Shaikin
wrote that the "disparity between analysts' estimates --
which range from $150 million to $250 million for the Angels
and $80 million to $140 million for the Ducks -- reflects
the peculiar economics of professional sports and a variety
of factors particular to this sale." Disney paid $140M for
the Angels and $50M for the Ducks. While the "franchises
have appreciated in value, operating losses ... would compel
any potential buyer to evaluate how he might make money in
an industry where one of the world's most successful
corporations apparently could not." Legg Mason Sports
Managing Dir John Moag: "The teams are more valuable to some
people than they are to others. Disney obviously didn't get
the play it thought it was going to get. Rupert Murdoch
clearly thinks there's a lot of play there." Shaikin wrote
that Nicholas might see "ways of exploiting sports
franchises to benefit" his company, Broadcom Corp., or
analysts say that Nicholas and "any partners might place a
significant value on the perception they saved professional
sports in Orange County" (L.A. TIMES, 8/31).
