Billionaire Lining Up To Buy AEG

Billionaire Lining Up To Buy AEG

  • Posted by Drew Epperley
  • On September 24, 2012
  • 0 Comments
  • 2012 MLS Season

Anschutz Entertainment Group (AEG) the owners of the LA Galaxy (and half owner of the Houston Dynamo) are being put up for sale.

But don’t expect AEG and more importantly the Galaxy and the Dynamo to stay on the open market for too long.

According to a report, Los Angeles billionaire Patrick Soon-Shiong is teaming up with financial services firm Guggenheim Partners to make a bid for AEG.

Soon-Shiong’s fortune is estimated at more than $7.2 billion.He is believed to be the wealthiest person in Los Angeles, according to Forbes magazine. Guggenheim has more than $160 billion in global assets under management, according to its website.

AEG’s assets also include the Los Angeles Kings (NHL), the Staples Center in Los Angeles and more than 120 sports or entertainment venues around the world.

AEG had been in discussions to sale the Dynamo to local Houston businessman Lee Alexander (he owns the NBA’s Rockets). But a report surfaced today from Dynamo president Chris Canetti saying the club has turned down an offer from Houston Rockets owner Les Alexander. Now one has to wonder if AEG is wanting to allow someone else to buy both the Galaxy and the Dynamo together instead of as individual pieces.

When the reports surfaced a week ago that AEG was being put up for sale, my immediate thought was centered around the league’s two AEG-owned clubs. I wasn’t able to comment at the time on the story but here is what I was thinking then. It is simple really, whomever buys AEG will obviously have to have some serious dough in their coffers, which should mean good things for the Galaxy (and Dynamo). I still believe the Dynamo will get sold off to someone local in Houston but if new owners like Soon-Shiong are in the mix, it could mean good things for the league in terms of investors pouring more money into the game.

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