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The Guggenheim Playbook Revealed
Executive Summary
In Part 1, we identified the valuation gap: Mark Walter paid $10 billion for the Lakers while Forbes valued them at $7.1 billion—a $2.9 billion premium.
The question: What does Walter see that everyone else misses?
The answer lies in the Dodgers. In 2012, Walter paid $2.15 billion. Everyone said he overpaid.
Today (November 2025): Dodgers worth $7.7 billion. Just won their 3rd World Series (2020, 2024, 2025).
That's a $5.55 billion increase in 13 years plus 3 championships.
This isn't luck. It's a repeatable 5-principle playbook we'll decode in this part.
I. The Five Principles of the Guggenheim Playbook
Principle #1: Buy the Real Estate, Not Just the Team
Dodgers: Acquired stadium + 260 acres of developable land
Lakers: Only own practice facility (5 acres). Don't own Crypto.com Arena.
Gap to fill: Walter needs to build Lakers arena (explored in Part 3)
Principle #2: Control the Media Rights
Dodgers: Created SportsNet LA ($8.35B over 25 years = $334M/year)
Lakers: Existing deal through 2031 ($3B total)
Opportunity: Combined streaming platform when Lakers deal expires (explored in Part 5)
Principle #3: Invest in Winning (It's Good Business)
Dodgers: Payroll went from $95M (2012) to $345M+ (2025)
Result: 3 World Series (2020, 2024, 2025), 12 straight playoff appearances
Lakers: Current payroll ~$185M. Expect increases under Walter.
Principle #4: Optimize Every Revenue Stream
Dodgers: Revenue grew from $220M (2012) to $650M+ (2025)
Method: Dynamic pricing, premium experiences, sponsorships, events
Lakers: Already premium, but arena ownership unlocks more
Principle #5: Think 20 Years, Not 2 Years
Evidence: 25-year media deals, 99-year parking leases, patient roster building
Lakers bet: In 2045, Lakers worth $25-30B (making $10B look cheap)
II. What the 2025 World Series Tells Us
The Dodgers winning their 3rd championship weeks after Walter bought the Lakers is incredibly instructive:
Key Lessons from 2025 Championship
- High payroll works: $345M payroll = back-to-back titles
- Sustained excellence is possible: 12 straight playoffs, 3 titles in 6 years
- Winning drives value: $2.15B → $7.7B partly because they won
- The model is proven: Not luck—systematic excellence
If Walter can do this with the Dodgers, why not the Lakers?
III. Side-by-Side: Dodgers vs Lakers Playbook
What Dodgers Had (2012):
- ✅ Owned stadium + 260 acres
- ✅ Could negotiate new media deal immediately
- ✅ Team needed complete turnaround
What Lakers Have (2025):
- ❌ Don't own arena (rent from AEG)
- ⏳ Media deal locked until 2031
- ⚠️ Team recently competitive but aging
The Challenge: Lakers are a more mature asset. Less "quick win" potential. Value creation will come from:
- Building own arena ($2-2.5B value - Part 3)
- Real estate integration ($500M-1B value - Part 4)
- Media synergies post-2031 ($400M-900M value - Part 5)
IV. Conclusion: The Playbook Works
Mark Walter has a proven 5-principle framework for creating value in sports franchises:
- Buy the real estate, not just the team
- Control the media rights
- Invest in winning
- Optimize every revenue stream
- Think 20 years ahead
Applied to Dodgers: $5.55B value creation + 3 championships in 13 years
Applied to Lakers: Could create even more value
The Bottom Line
Everyone said Walter overpaid for the Dodgers in 2012.
They were wrong. (3 World Series, $5.55B gain)
Everyone says Walter overpaid for the Lakers in 2025.
Are they wrong again?
Parts 3, 4, and 5 will show you why the answer is YES.
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