Fox Wants Piece of Lakers Too

Having closed on its $311-million acquisition of the Dodgers only two weeks ago, the Fox Group headed by billionaire Rupert Murdoch is near agreement on deals to buy part of the new Staples Center and part of the Lakers, sources told The Times.

Under the deals, which would be announced in stages, Fox would purchase 40% of the arena and a similar percentage of the Kings’ option to buy a piece of the Lakers.

Because the option is for 25% of the basketball team, Fox would become a 10% owner.

“It’s a done deal, as least as far as the arena is concerned,” a source said. “With the Laker piece, there are technical difficulties.”

Fox already holds cable rights to the Dodgers, Lakers, Kings and Clippers. The network is pushing to hold on to those rights as part of its rivalry with the Walt Disney Co., which owns ESPN, as well as the Angels and Mighty Ducks. ESPN reportedly plans to launch another channel that would be devoted to regional sports packages--like Fox Sports West.

The Kings and Lakers are set to move into the Staples Center when it opens, scheduled for the fall of 1999. The Clippers also had negotiations about going there, which broke off. However, owner Donald T. Sterling suggested recently he’s still interested, saying only a “small issue” has to be resolved.

The Fox Group originally tried to purchase 40% of the entire Kings franchise, sources say, but was turned down by the NHL because the network has a 20% stake in New York’s Madison Square Garden, making it a co-owner of the Rangers.

Fox then began restructuring its deal to purchase part of the Kings’ arena and their Laker option.

Fox’s stake in Madison Square Garden also makes it a part-owner of the Knicks, but NBA rules allow minority owners to hold noncontrolling shares of multiple teams.

“Our rules do allow minority ownership in more than one team,” NBA Deputy Commissioner Russ Granik said from New York, “but they’re subject to certain minimum levels.”

Murdoch, a native of Australia, built a worldwide empire, gaining television dominance in the United Kingdom and Australia, using sports programming as a cornerstone.

In only four years, he has become a major player in the U.S. with high-profile, nine-and-ten-figure acquisitions. In 1994, he snared a share of the NFL contract from CBS, paying $4.4 billion for four years. When the contract came up for renewal this spring, he paid $17.6 billion for seven more years.

He strung together a group of regional sports channels into a network with national reach, taking aim at ESPN. The Fox/Liberty Networks, a 50-50 joint venture with Liberty Media Corp., the programming arm of cable giant Tele-Communications Inc., now controls virtually every major regional sports network in the country.

Murdoch also made a deal with Cablevision SystemsCorp., which merged its six major networks, including ones in Chicago and New York, into Fox/Liberty Networks. Fox got a 20% non-managing interest in Madison Square Garden. Murdoch channels, including MSG I and II and Fox Sports New York, now own rights to every New York major league team that appears on cable, the Yankees, Mets, Knicks, Nets, Rangers, Devils and Islanders.

Fox and Liberty have long-term contracts with teams but are vulnerable when rights come up for renewal. That is one reason why Murdoch has been trying to increase his influence and control.

Fox officials freely talk of taking over as many prime properties as opportunity and league rules will allow. An associate says Murdoch ultimately wants control of the Dodgers, Kings and Lakers, this city’s marquee teams.

“This deal would give Murdoch creeping control of the Kings, through the backdoor,” a source close to the negotiations said.

The parties involved in these negotiations issued noncommittal statements but no denials.

“The Kings have kept us informed of their dealings,” said Bob Steiner, a spokesman for Laker owner Jerry Buss. “As far as commenting on it, a transaction between the Kings and any other third party is not for us to speculate on. However, as far as the transaction you describe goes, we’d have no problem with it.”

Said King President Tim Leiweke: “We have talked to a lot of different entertainment companies about a lot of different relationships. We have no pending agreements. I can assure you, we will call no press conference in the next few days to announce anything. So any speculation about a relationship with one entertainment company would be premature.”

Said Fox spokesman Vince Wladika: “We have had contact with representatives of the Staples Center and the Kings but it’s our understanding that they have spoken with a number of media and entertainment companies. Right now, though, our focus is April 7, the opening day at Dodger Stadium.”

Helene Elliott, Randy Harvey, Michael Hiltzik and T.J. Simers contributed to this story.