Magic formula buys LA Dodgers for $2bn The drawn-out race for control of the Los Angeles Dodgers neared an end on Tuesday evening when a consortium led by Earvin "Magic" Johnson, the basketball legend who is one of the city's favourite sons, triumphed with a $2bn bid - a record price for a sports team. The sale, which must be approved by bankruptcy court, ends Frank McCourt's controversial eight-year tenure as owner of the Dodgers, a period in which it racked up vast debts, filed for bankruptcy protection and incurred the displeasure of Major League Baseball, the sport's ruling body which last year took over the running of the club. Mr Johnson, the former Los Angeles Lakers basketball star, assembled a consortium that includes Guggenheim Partners, the financial services firm, and Peter Guber, the Hollywood producer of movies such as Rain Man and Flashdance. Guggenheim financed the deal to buy the club, which will be owned by a new entity - Guggenheim Baseball Management - and run by Stan Kasten, the former president of the Washington Nationals baseball club. In a fiercely competitive auction, Mr Johnson and Guggenheim saw off a joint bid from Steve Cohen, the hedge fund billionaire who founded SAC Capital Advisors, and Patrick Soon-Shiong, a Los Angeles-based biotech billionaire. The Johnson-Guggenheim consortium also triumphed over Stan Kroenke, the owner of Arsenal football club and the St Louis Rams American football franchise. "I am thrilled to be part of the historic Dodger franchise and intend to build on the fantastic foundation laid by Frank McCourt as we drive the Dodgers back to the front page of the sports section in our wonderful community of Los Angeles," said Mr Johnson in a statement. Mr McCourt said the sale reflected the "strength and future potential of the Los Angeles Dodgers and assures that the Dodgers will have new ownership with deep local roots." Under the terms of the sale, Mr McCourt and "certain affiliates of the purchasers" will also form a joint venture to pay $150m to acquire land around the Dodgers stadium at Chávez Ravine. His departure as owner of the club is likely to be greeted with relief by Dodgers fans, who have in recent years witnessed the slow decline of one of the sport's biggest brands. The MLB took over the daily operations of the club in April amid concerns about its financial viability. Mr McCourt responded by filing for bankruptcy protection and a stand-off ensued while he tried to finalise his divorce from his wife, Jamie McCourt, who claimed an ownership stake in the Dodgers. Mr McCourt wanted to sell future Dodgers media rights but faced opposition from the MLB and Fox, part of News Corp, which owns the rights. The MLB had asked the court to order a sale of the club and accused Mr McCourt of violating MLB rules by taking $190m of team funds for personal use. Court documents revealed that Mr McCourt and his wife had taken out $100m of loans from Dodgers-related businesses, funding a lavish spending spree that included private jet travel, multiple homes in Malibu and Beverly Hills and an Olympic-sized swimming pool. A private hairdresser was paid $150,000 a year to attend to Mr and Mrs McCourt, while a Boston-based psychic healer was also employed to send positive thoughts to the Dodgers - despite living 3,000 miles away from Los Angeles. Mr and Mrs McCourt eventually settled their dispute in an agreement which led to the eventual sale of the club. The auction was managed by Blackstone.