Frank McCourt Needs to Thank ESPN

Yesterday it was announced that Magic Johnson and his business partners won the bid to purchase the Los Angeles Dodgers for $2 Billion from Frank McCourt, taking him out of bankruptcy and out of baseball. But the man is still going to walk away with $1 Billion after the deal closes, and he won't be completely out of LA's-- or the Dodgers'-- hair anytime soon.  McCourt will still own the land surrounding the stadium, which he no doubt intends to develop into a Caruso-esque transit-oriented development project; which he'll have to do if he's going to cannibalize the parking lot. And as we've come to understand, he'll have a tiny $1B fund to get him started.

To the broader point: Frank McCourt owes his existence from here on out, everything that he gains from this transaction, to ESPN. Well, maybe not the company itself so much as one would be inclined to TiVo a game, use a Kleenex to wipe one's nose, or make a xerox copy of a document. Rather, the sports entertainment industry, with the help of advances in communication technology, is the only reason Frank McCourt will once again be a wealthy man.

The Dodgers $2B price tag is the richest in sports franchise history. This sounds like an amazing feat; surely there's a more valuable NFL franchise or maybe a Euro soccer franchise, even. Nope. But that's only because the chemistry that is involved in this transaction hasn't manifested itself before in this Internet Age; a time when consumers worldwide have more disposable income than ever, and are increasingly spending that discretionary money on entertainment. The Los Angeles metro area is also the largest single media market in the country (especially when you consider that the Angels claim LA), making the potential value of a sports franchise even greater.

With the growth of sports entertainment (even CBS is entering the market due to success with the NCAA men's basketball tournament) through the Internet Age, social networking, mobile apps, merchandising, and an ever-expanding options with which media companies can deliver their content to consumers, the potential value of a franchise further increases. It has become so easy for a fan to connect with their favorite team or player, get updated information, and watch them in action across multiple platforms than ever before, and the possibilities are still growing.

So because of timing, because of technology, and because of Entertainment Sports Programming, Frank McCourt gets to walk away from baseball, after taking the Dodgers through bankruptcy and after going through a bitter divorce trial, still a wealthy man.