Dodgers Owner Peter O'Malley "is close to a deal" to
sell his team and Dodger Stadium to News Corp. Chair Rupert
Murdoch for more than $350M, according to sources of Simers
& Hofmeister of the L.A. TIMES. O'Malley "confirmed that he
asked" MLB to approve the negotiations. He said that he is
"negotiating exclusively with the media conglomerate
controlled by Murdoch and has asked baseball's executive
council for permission to continue the talks." A deal
"could be presented next month for league approval."
Although sources indicated that Murdoch and O'Malley are
close to a deal, O'Malley's future role with the team "has
not yet been discussed." O'Malley and other "key" execs may
remain as part of the management team (L.A. TIMES, 5/13).
ESPN's Peter Gammons was reporting that "terms of the sale
might include O'Malley remaining as President of the
Dodgers, which would keep him involved and also solve his
concerns about estate taxes" (ESPN, 5/12).
HE LOVES L.A.: Simers & Hofmeister note that while
O'Malley was unsuccessful in winning L.A. city approval to
build an NFL stadium, sources said News Corp. "could make it
happen." Murdoch "may have leverage as a corporate taxpayer
and employer and as a political contributor." Besides
owning Fox Broadcasting Co. and 20th Century Fox studios,
Murdoch is "a generous contributor" to the Republican Party,
giving the state GOP $1M last fall. L.A. Mayor Richard
Riordan, also a Republican, "seemed enthusiastic at the
prospect of News Corp. ownership." NFL sources tell Simers
& Hofmeister that "while Murdoch could build a football
facility on the Dodger property, they would prefer that he
not own the team because Fox also televises NFL games."
Sources also note that Murdoch is "trying to buy a piece" of
the Lakers (L.A. TIMES, 5/13).
THESE WEAPONS OF MASS DISTRACTION: Phillies President
Bill Giles, on Dodgers-News Corp. negotiations: "It's
becoming apparent to these big media giants that programming
is critical to the long-term success of the electronic end."
Giles, asked about any potential conflict of interest:
"There are more pluses than minuses. When we were debating
the Disney deal [for the Angels], we felt at the time it was
a good thing to have the king of family entertainment
involved with baseball. And I don't suppose it will be a
problem with Fox, either" (Jayson Stark, PHILADELPHIA
INQUIRER, 5/13). Former CBS Sports President Neal Pilson,
who led CBS when it lost its NFC contract to Fox, on
Murdoch: "If he wants something, he'll spend the money to do
it. I experienced that firsthand." One Wall Street
analyst, who asked not to be identified, said a News Corp.
purchase of the Dodgers "doesn't add much to the
corporation. ... It'll help in the [L.A.] market, but they'd
be better off owning the rights to do the broadcasts than
owning the team" (Tim Jones, CHICAGO TRIBUNE, 5/13).
