By Bill Shaikin
4:36 PM CDT, July 19, 2013
But, if not for Guggenheim Baseball Management, the headline on this story might read: "Dodgers owner Steven Cohen faces SEC allegations." That, you might say, would put a bit of a damper on the pennant race.
Cohen, a Connecticut-based hedge fund king with a net worth estimated at $9.3 billion by Forbes, was a finalist in the Dodgers bidding. He had partnered with Patrick Soon-Shiong, a doctor, biotech investor and philanthropist who is generally regarded as the richest man in Los Angeles.
Major League Baseball owners approved Cohen as one of three finalists, and some people in the bidding process believed that he was the buyer preferred by MLB. Guggenheim substantially outbid Cohen and the other finalist, St. Louis Rams owner Stan Kroenke.
Cohen did buy a minority share in the New York Mets.
On Friday, the Securities and Exchange Commission announced that it would pursue a proceeding intended to strip him of his right to oversee investor funds, claiming he did not follow up on "red flags indicating potential insider trading by his employees." Cohen was not cited for insider trading and has not been charged with any crime. In a statement, his company denied the SEC allegations.
After Dodgers fans endured more than two years of ownership turmoil as McCourt fought in divorce and bankruptcy court, a new owner fighting the feds would have put a depressing spin on the phrase "Think Blue."
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