Boehly: Dodgers' $2B valuation was justified by investment-grade media rights
Todd Boehly · Todd Boehly - The Next Berkshire Hathaway at Eldridge (Capital Allocators, EP. 223) · Nov 22, 2021 · at 25:19
Todd Boehly, CEO of Eldridge, explains the financial underwriting thesis behind his group's 2012 acquisition of the Los Angeles Dodgers.
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“And ultimately, we came to a conclusion that we were very able to pay two billion dollars, because those media rights were effectively an investment grade bond, because you're going to get the offtake from an example, CBS, Fox, Time Warner, all of those parties were interested in broadcasting the game, and all of them were Investment grade counterparties that we're going to give you a long-term contract to broadcast the media rights, so that's a derivative.”
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