Frank McCourt’s tax bill for Dodgers sale: $460 million
Frank McCourt has paid more than $460 million in state and federal taxes related to the sale of the Dodgers, one of his attorneys said Monday.
McCourt sold the Dodgers for $2.15 billion last year in a transaction in which Guggenheim Baseball Management bought the team, Dodger Stadium and a 50% stake in the parking lots surrounding the stadium. McCourt retained a 50% stake in the parking lots.
As part of the transaction, Guggenheim assumed $412 million in team debts, according to documents filed in U.S. Bankruptcy Court. After subtracting tax payments and debt assumption from the purchase price, McCourt turned a $1.278-billion profit on the sale of the Dodgers.
In 2009, the Chicago Cubs sold for $845 million, the previous record price for a baseball team. So the net profit McCourt made for selling his baseball team was more than the gross purchase price for the sale of any other team.
The amount of McCourt’s tax payments was disclosed in testimony by Ryan Kirkpatrick, one of his attorneys, in a Los Angeles Superior Court hearing in which ex-wife Jamie McCourt asked a judge to throw out the couple’s divorce settlement.
Under the settlement, Jamie McCourt got $131 million, tax free. She agreed to the settlement before Frank McCourt agreed to sell the Dodgers and, she now says, only after he fraudulently misled her about the value of the team. He denies the allegation.
The hearing is scheduled to conclude Wednesday, but a ruling is not expected to be issued that day.
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