Three years ago, Mark Walter wasn’t just living large. He was owning it.
On a 2013 list of the most powerful people in baseball as constructed by Sports Illustrated, the Dodgers chairman and controlling owner sat at No. 2, just behind then-commissioner Bud Selig. On the SI list of the most powerful in all of sports, Walter fell in at No. 11 as he was “redefining the baseball world” and was making a play to purchase AEG.
“How does an owner who hasn’t been in the game for even a year become so powerful?” asked writer Tom Verducci. “Easy: Just get your hands on a $7 billion windfall, which is what Time Waer Cable agreed to pay the Dodgers over 25 years to broadcast their games.
“After Frank McCourt ran the Dodgers into bankruptcy, Walter, the chief executive officer of Guggenheim Partners, a privately held global financial services firm, led a group that purchased the club for a record $2.15 billion. The value of the club was tied to the 2013 expiration of the Dodgers’ current TV deal -- a great accident of timing as rights fees for regional sports networks have been exploding.
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“Now Walter has the highest payroll in the game, a refurbished beauty in Dodger Stadium, and the rest of baseball complaining that only a fraction of his TV money actually counts toward revenue-sharing and luxury tax formulas.”
But if you’re crunching numbers into formulas in 2016, is Walter crush-proof in the sports world?
With big money comes big responsibility. There are not only games unseen – unless you’re in the TWC/Charter Cable subscriber territory for the last three years – but championships unrealized (aside from NL West titles, which seem like consolation ribbons to many.) Those tend to speak louder to a fan base than do piles of mortgaged promises in the nation’s entertainment capital.
On the inaugural list last year of the Top 50 Most Powerful in L.A. Sports, Walter was a regal fit at No. 5. This go around, he slips three spots.
It could have been worse. Dodgers oweship frontman Magic Johnson plummeted from No. 3 to No. 19.
But it could have been better. Dodgers broadcaster Vin Scully has become the franchise’s highest-ranked person, up from No. 6 to Walter’s previous No. 5.
For those into trendspotting, on the 2012 list of the “Most Influential People in Sports Business,” the Sports Business Daily placed Walter at No. 8. The next year, he was at No. 16. He didn’t make the 2014 or 2015 lists.
A recent editorial in the L.A. Downtown News under the headline, “Dodgers Owners Have Failed The Fans,” echoes the new narrative for the Dodgers and the failing SportsNet LA distribution issue: “The Dodgers would like you to believe that fault to date lies with the mammoth communications companies. This page, however, lays the blame on the shoulders of the Dodgers owners. The problem is, simply, greed. Given the current situation, it is clear that the owners — Mark Walter, Earvin “Magic” Johnson, Stan Kasten, Peter Guber, Bobby Patton and Todd Boehly — have failed the fans.”
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There is also a fan-generated documentary, “Moneyball Too” by Tom Wilson, that shines more of a spotlight on “King” Walter and his Guggenheim group as one that doesn’t quite comprehend the ramifications of their actions upon the Dodgerland peasants.
Walter doesn’t shy away from wearing a crown.
An L.A. Weekly story last October points out that in the 2015 book, “The Best Team Money Can Buy,” advances the idea that this team’s ownership team has been a saving grace and notes Walter’s own quote that “I’m nothing special … just the king of common sense.”
But the story also pointed out some “troubling aspects” of Guggenheim’s holdings that have emerged in insurance filings and in a class action lawsuit, which was filed and “then mysteriously” dropped last year. Using insurance money to buy a team, “the ultimate toy for the super-rich, seems like a lawsuit waiting to happen,” said financial writer Andrew Ross in the New York Times.
The 55-year-old Walter sports a net worth of about $2.2 billion, almost double from what it was in 2012. He was No. 810 on Forbes’ ranking of world billionaires, up from No. 1,006 in ’15.
Will Mark Walter become the next Walter O’Malley? We need a larger sample size, which will happen over time.
Marc Ganis, president of the sports business consulting firm Sportscorp, does business in Chicago, the same city where Walter lives and works on Guggenheim holdings (and owns season seats to the Cubs at Wrigley Field).
Naturally, Ganis is interested in watching the Walter stock trend but doesn’t see it as any reason to start selling off.
“What has happened is a very natural progression, in life as well as in sports and business, where no one is exempt,” said Ganis.
“When he first came in, the deal he made for the Dodgers was breathtaking. It not only set the baseball world but the sports world on its ear as a result of the way it was done and the source of funding. He was enormously influential by example if not by his personal relationships.
“Then he gets this regional sports network deal – again, record-breaking, structuring it to mitigate revenue sharing and providing an assured revenue stream to adjust the way the team was funded. Again, enormously influential. The team makes big trades, is doing well on the field. And Guggenheim looks to buy AEG – which didn’t happen (as Phil Anschutz took the company off the table after hearing several bids for it).
“So he’s had a run over three years that was trailblazing and ground breaking. But then consider – the guy has a day job of actually running one of the largest investment funds in the country.
“Had the Dodgers won a championship, he’d still be up on anyone’s list. Had the Time Waer distribution deal gone better, he’d be up there. But those are events that haven’t happened. And now all that he did before, he’s not alone. The Cubs are selling a minority interest and they’re getting up to that $2 billion level.
“The sports scene in Los Angeles is changing with the NFL. With change, things elevate and drop. But that’s all very natural in the evolution and arch.”
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