Dodgers' sale bodes well for Giants' Matt Cain
BASEBALL FINANCES $2.15 billion tag reverberates
2of6San Francisco Giants starting pitcher Matt Cain throws to the Cincinnati Reds during the third inning of a spring training baseball game Friday, March 9, 2012 in Scottsdale, Ariz. (AP Photo/Marcio Jose Sanchez)Marcio Jose Sanchez/Associated PressShow MoreShow Less
4of6San Francisco Giants pitcher Sergio Romo throws to Los Angeles Dodgers James Loney during their spring training baseball game Wednesday, March 28, 2012 in Scottsdale, Ariz.Lance Iversen/The ChronicleShow MoreShow Less
5of6San Francisco Giants starting pitcher Matt Cain throws against the Cincinnati Reds during the third inning of a spring training baseball game Friday, March 9, 2012 in Scottsdale, Ariz. (AP Photo/Marcio Jose Sanchez)Marcio Jose Sanchez/Associated PressShow MoreShow Less
Scottsdale, Ariz. -- As Matt Cain lounged at home Tuesday evening, his potential net worth rose.
Industry insiders surmise that the cost of signing free agents will rise now that Frank McCourt has agreed to sell the Dodgers to an investment group fronted by Magic Johnson for $2.15 billion, at least $500 million more than expected. For primo free agents such as Cain, the "cha-ching" could not be more deafening.
"Not only did Matt Cain just make more money, but every player did," one prominent agent said. "It really shows how healthy and vibrant the industry is. Plus, every agent knows that the Dodgers are about to spend a lot of money."
Nobody should cry for the owners, though. The potential value of their franchises collectively rose by billions of dollars when the Dodgers were purchased for more than 2 1/2 times the previous record for a baseball team.
"Every owner has a smile on his face today," the agent said.
The economics work like this: The money men behind the Dodgers' sale were willing to pay a fantastic premium for the team because they are expecting to get a multibillion-dollar television deal. To boost the dollars in that deal, the new owners will have to put a great product on the field. The networks do not want to pay "American Idol" prices for "Manimal" reruns.
"The Dodgers are obviously going to have a first-class product on the field and be ultra-competitive for the elite free-agent talent," said one industry insider from the West Coast not tied to the Dodgers or Giants. "They cannot gut the team, be complacent or settle on mediocrity."
There is an opposing view that suggests the $500 million premium the new owners offered to seal the deal might cut into their projected operating capital. Furthermore, Stan Kasten, who will be the chief baseball executive in the group, was a draft-and-develop man when he and John Schuerholz ran the Braves. Kasten might not be a free-wheeling spender.
But this is a minority view.
The predominant thinking holds that the Dodgers will ignite a bidding frenzy with the Yankees, Red Sox and other well-heeled clubs for the bigger free agents, including Cain, if the Giants do not sign him first.
Though the sides are thought to be far apart eight days before a supposed Opening Day deadline, they are actively negotiating, a source told The Chronicle.
Giants fans might have good cause to fear a Dodgers organization flush with cash and competent owners, in contrast with recent disarray and penury under McCourt, but Giants President Larry Baer said this proposed deal is a good thing.
"Nobody wants to go on the field and play a team that's in bankruptcy," Baer said. "When you have a team like the Dodgers that has a renewed spirit and the energy of a Magic Johnson, I don't think it can hurt the rivalry. It will make the Dodgers-Giants rivalry more compelling."
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Like the agent quoted above, Baer believes the Dodgers' sale price is a "good barometer" of the game's financial health.
"We shall see in terms of how it affects salaries," he said. "I don't think one sale will be the determining factor."
Good thing for McCourt the agreement came Tuesday instead of Wednesday. The buyers might have said "no deal" after watching minor-leaguer Yusmeiro Petit shove the ball down L.A.'s throats for five innings in a 4-1 Giants victory at Scottsdale Stadium.
The Dodgers sent only two regulars, Mark Ellis and James Loney, but Petit looked sharp nonetheless. He has not allowed a run in his eight Cactus League innings.
Petit is a former Arizona Diamondback who is resurrecting his career after a shoulder injury. Giants coaches Hensley Meulens and Jose Alguacil recommended his signing after seeing him throw in Venezuela in the fall.
Notable:Nate Schierholtz had his best day of the spring when he really needed to show something. He hit a two-run, opposite-field homer against Todd Coffey and made two nice plays in right field, throwing out catcher Josh Bard trying to go from first to third on a single and making a tough catch on a Jerry Hairston Jr. liner. ... Sergio Romo walked Mark Ellis, who scored the lone Dodgers run on a James Loney double. Romo has allowed runs in four of his eight games. He struck out Josh Fields and Hairston after the double. ... Angel Pagan, who ended an 0-for-25 streak with a double Tuesday, hit another double. ... Brandon Crawford homered and bunted for a single.
Quotable: "I feel like I've done all my work, whatever happens from here on. If I could do it again, I wouldn't have changed anything."
- Madison Bumgarner, after ending an excellent camp by throwing seven innings of two-hit ball against A's minor-leaguers. He walked two and struck out eight.
Today's game: Giants (Matt Cain) at Rangers (Matt Harrison), 6:05 p.m., sfgiants.com
- Henry Schulman
Rising value
A week ago, Forbes had the Dodgers as baseball's second-most-valuable franchise, at $1.4 billion. On Tuesday, they sold for $2 billion. Either the buyers overpaid or Forbes underestimated the market. As Yankees President Randy Levine said to ESPN, "If they are worth $2 billion, one can only imagine how high the Yankees' value is." Here are some of Forbes' valuations from March 21:
Franchise Value
1. Yankees $1.85 billion
2. Dodgers $1.4 billion
3. Red Sox $1 billion
4. Cubs $879 million
5. Phillies $723 million
6. Mets $719 million
7. Rangers $674 million
8. Angels $656 million
9. Giants $643 million
10. White Sox $600 million
30. A's $321 million
Henry Schulman is a San Francisco Chronicle staff writer. Twitter: @hankschulman. hschulman@sfchronicle.com