Ex-Studio Exec to Take Control of the Dodgers

One of Hollywood’s most experienced and respected executives will be named head of the Los Angeles Dodgers today in a deal that will give him both a minor stake in the club and full management control.

Former Warner Bros. Co-chairman Robert A. Daly, who left the studio Oct. 1 after nearly 20 years, will become managing partner of the Dodgers for owner Fox Entertainment Group.

Sources familiar with the deal said Daly’s role with the team will be analogous to George Steinbrenner’s with the New York Yankees or Al Davis’ with the Oakland Raiders. Both men own their sports teams with partners but enjoy full control and are publicly identified as the owners.

The development, expected to be announced at a news conference this morning at Staples Center, marks an extraordinary turn of events for the team and for Fox, the media empire controlled by Rupert Murdoch that bought the Dodgers last year for a whopping $311 million. Once Daly takes over, Fox will have no involvement in day-to-day operations.

Fox bought the club largely to enhance its regional sports cable operations and to counter Walt Disney Co.’s now-abandoned efforts to start an ESPN regional sports channel in Los Angeles.

But running the team has caused nothing but headaches for Fox executives. The company and its executives are regularly skewered by fans and were publicly trashed when the team in 1998 traded popular catcher Mike Piazza, who played a critical role this season in getting the New York Mets into the playoffs.

Expectations for this season were high after the Dodgers in the off-season signed pitcher Kevin Brown for a staggering $105 million over seven years, hired respected Manager Davey Johnson and brought in General Manager Kevin Malone. Many preseason predictions had the team finishing first in the National League West.

Instead, the team was a laughingstock of the major leagues. The Dodgers finished a distant third to the Arizona Diamondbacks in the NL West despite an $80-million payroll--third highest in baseball.

Dodger President Bob Graziano lost his job Sept. 28 as a result of the disastrous season. Ironically, negotiations are taking place to bring back Graziano as team president, major league officials said, and he’s expected to accept the position soon.

As part of the deal, Daly, 62, will buy a small stake in the team, said to be about 10%. Sources said the stake and the price are still being negotiated and that any purchase by Daly remains subject to approval by major league baseball. That isn’t expected to be a problem. One high-ranking baseball official at the World Series said Daly’s involvement will be good for the organization.

One source said that the price will probably be “at cost,” which if true, would make Daly’s investment about $31 million.

Sources close to Daly said that running the team fulfills a lifelong dream of his. The son of a policeman, Daly grew up in Brooklyn, attending Dodger games at Ebbets Field there and developing a lifelong passion for the team long before it moved to Los Angeles in 1958.

A longtime season-ticket holder, Daly is close to former Dodger owner Peter O’Malley and announcer Vin Scully as well as former manager and Senior Vice President Tom Lasorda. Daly has been such a fan that he has attended the team’s spring training in Vero Beach, Fla., for the last seven years.

Said to be worth several hundred million dollars from stock and earnings made while at Warner Bros., Daly tried to form a group to buy the team shortly after O’Malley put it up for sale. As head of Warner Bros., Daly had to get permission to do that from studio parent Time Warner Inc., which owns the Atlanta Braves. Daly’s plan at the time was to buy a minority stake, becoming managing partner when his contract with the studio expired.

But he never made a bid when it became clear Fox and its deep pockets wanted the team.

Up until last month, Daly and fellow Warner Bros. Co-Chairman Terry Semel were the longest-running management team in the entertainment industry, operating a $10-billion-a-year business.

During their tenure, the two oversaw such successful film franchises as the “Batman” and “Lethal Weapon” series, and developed close relationships with a number of major stars, including Mel Gibson, Clint Eastwood and Kevin Costner. Warner Bros. also had one of the most lucrative television production operations in the industry that included such huge hits as “E.R.” and “Friends.” Daly also was behind the formation of the WB Network for Time Warner and with Semel in recent years oversaw Time Warner’s music business.

Hollywood was shocked when the two abruptly announced in July that they were leaving the studio. Both said they wanted to move on to new challenges, although others have said Time Warner wanted to force some changes on the studio that they didn’t want.

Daly is friendly with both Murdoch and Murdoch’s second-in-command at News Corp., Peter Chernin, and had informally offered his opinions to them about the team over the last two years. Sources said Daly broached the subject of getting involved with the Dodgers with Chernin at a game they attended late in the season, and also discussed it with Murdoch recently over breakfast.

But sources said Daly did not start talking formally with the club until after he left Time Warner, because of that company’s ownership of the Braves. Negotiations concluded Wednesday afternoon.

Baseball officials wanted to keep the news under wraps until the World Series was completed, but Commissioner Bud Selig, who must approve Daly’s operational control and interest in the team, granted Fox permission to go ahead and announce the move today, no matter the outcome of Game 4 of the Series.

For Fox, Daly brings a wealth of experience in television, valuable to the company in an era where TV rights and opportunities are critical. Before joining Warner Bros., Daly was a top executive at CBS, working under legendary founder William Paley.

“He’s got excellent management skills, he’s passionate about the team and he’s a proven winner,” one source familiar with the deal said.

Daly faces big challenges in running the team in a sport where the economics for many owners don’t make sense because of soaring payrolls.

On the field, the Dodgers must improve the bullpen and bench. Manager Johnson also wants another left-handed power hitter to help provide offensive balance. Although several players had good seasons statistically, the Dodgers didn’t produce enough when the games mattered.

The payroll is expected to increase from $80 million to about $92 million next season because of guaranteed contracts and the raises players who are eligible for arbitration are expected to receive. Malone made Brown the highest-paid player in the game’s history last season with the $105-million deal.

Malone will attempt to meet the team’s needs through trades. Right fielder Raul Mondesi, pitcher Ismael Valdes and catcher prospect Angel Pena are the Dodgers’ most coveted by opposing teams.

Moving Mondesi and Valdes could help ease payroll concerns, but would decrease the team’s talent base unless Malone makes some shrewd moves. Malone has had talks with the Seattle Mariners about acquiring all-star shortstop Alex Rodriguez, and Mondesi and Valdes could be the centerpieces of a multiplayer trade to acquire Rodriguez in the off-season.

Longtime first baseman Eric Karros had a career season and is considered the most popular Dodger with fans. Malone said he can’t consider offering Karros, in the final season of his contract in 2000, an extension because the Dodgers are burdened by too many multiyear contracts.

Times staff writers Ross Newhan and Sallie Hofmeister contributed to this report.