SAC Capital’s Steve Cohen is considering a bid for the bankrupt LA Dodgers, the Wall Street Journal reports.
Of course, there’s no comment from anyone from either side (Cohen or the Dodgers) on the matter.
But three people close to the deal said that Cohen has been talking about it with Steve Greenberg, an investment banker who dealt with him earlier this year while Cohen was looking to buy the Mets. Greenberg was handling the sale of a $200 million stake in the New York team.
This time Cohen will have to contend with other bidders like Dallas Mavericks owner Mark Cuban, Ron Burkle, an owner of the National Hockey League’s Pittsburgh Penguins, and Tom Golisano, the billionaire former owner of hockey’s Buffalo Sabres.
And of course, then there’s the bankruptcy court, which could ultimately help Cohen with his bid in two ways. First, there’s the fact that 3/4 of MLB owners, who tend to be picky about the people they allow to buy teams in the league, need to approve the sale. The bankruptcy court could advocate for someone the owners don’t care for if the bid is attractive enough.
The second way the bankruptcy court could help is with Cohen’s legal issues. SAC Capital is under federal investigation, and even though Cohen himself isn’t being charged with any wrongdoing that could hurt his chances of winning the team.
If Cohen makes an awesome offer and it’s rejected, Dodgers owner Frank McCourt can challenge the rejection in bankruptcy court.
Bid books should be going out in the next few days, with the first round of bidding set for January. Blackstone Group is handling the sale.