The Business Model for The Dodgers
Johanna's View
by Johanna Wagner
The Business Model for The Dodgers
This post was written by Johanna Wagner on December 17, 2012
Posted Under: Johanna's View

As the Dodgers outspend event the highest of spending former Yankee teams this season, many in baseball are worried about what this will do for baseball, but also how this new ownership group can fare.  After all, former owner Frank McCourt had great plans for the stadium and the parking lots and had the same TV deal in the works as the new owners.

The problem though was McCourt had very few assets outside of the real estate- something that is not very liquid.  McCourt was clearly also focused on the old model of big business which was acquisition of land.  The new model, as these new owners tell Bill Shaiken, is not the real estate, it is to own content.  It is the delivering of live content, and the creation of access to that content, that will never lose value in the coming years.  With all the avenues for media, with all the different types of programming that we have access to, and with all the new social media avenues, there is no one was to share experiences.  But, if you own those experiences, be it an awards show or a professional sporting team, then you hold the cards for what people want to see.  The Dodgers, especially if they are a winning franchise, have the huge ability to deliver a sponsors message during a high-profile baseball game.  That is valuable now, but in the next decade could become invaluable.

So while economists might be shaking their heads at the $2 billion price paid for the Dodgers, or for the spend the bank business model the owners are putting forth, one has to see this isn’t the same old ownership group.  These are forward thinking businessmen, and the Dodgers are going to return to their glory.  It will make it tough on everyone else- particularly the Yankees.  But it will be fun for those west coasters to watch.

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