Exploiting Hollywood 1980.

Chapter 1465 Buying the Square Garden
"Relax, Shirley. Summer (Redstone) and I just have some business to discuss. He may be surprised that I can discuss business with him so soon..." Ronald took a sip of coffee, then stopped joking and assured Shirley Lansing that he had no conflicts with his boss Redstone.

"Well, I'm just a little worried. Mr. Lei Shidong didn't seem to be in a very happy state just now..." Shirley Lansing observed his expression.

"You have no reason to worry. Paramount Pictures will be an important source of cash for the new group for a long time to come. As long as you can ensure that several blockbuster films every year are profitable..." Ronald replied with narrowed eyes.

"What's important is that big-budget movies don't lose money, not that they make a lot of money..." Shirley Lansing grasped the point sharply.

"Between the two of us, you're the better studio executive..."

Ronald drank coffee and Lansing drank mineral water, and they smiled at each other.

Now their interests are aligned. Ronald, Tom Cruise and others need Paramount to invest heavily in them, arrange good schedules, and invest huge amounts of marketing funds. And Shirley Lansing needs such a superstar who can guarantee box office to maintain her performance.

What Redstone wants is to squeeze every drop of milk out of his subsidiaries. Lansing and Ronald took advantage of his mentality and formed a small alliance. Anyway, there is a guarantee of making big money. People like Tom Cruise and Ronald will not let the project lose money. As long as it makes money, Redstone can't find fault in the short term. Paramount has a lot of companies that lose money. Being able to keep Paramount Pictures profitable in a high-risk industry like the film industry is a great achievement.

……

After Ronald returned home, he took out the report of MSG TV Network and looked at it. Because it had been put on the shelf, some of the company's real operating conditions were also placed on Ronald's desk.

After looking at the operating conditions over the past twenty years, Ronald found that this company was definitely not as boring as it seemed, but was a pretty good hidden champion. He asked DDH's CEO Ed Bastian for his opinion.

"So you also think Madison Square Garden is a good business?"

"Yes, but there are still some incompatibilities between his business and DDH's. If the two gears don't mesh smoothly, then things will get worse... One of the key points is Charles Dolan..."

"What do you mean?" Ronald became interested.

Ed Bastian is a competent CEO who knows the local media in New York like the back of his hand. He is also very familiar with the Dolan family, a local tycoon who made its fortune by broadcasting professional sports events in New York.

Charles Dolan was actually a poor Irishman who made his fortune by selling a patent to Ford Motor Company. During World War II, Dolan served in the U.S. Army Air Force (later the Air Force), and after retiring, he came to New York and made his fortune in the film industry.

However, his film business is not Hollywood feature films, but industrial films with New York as the production center, a kind of instruction manual-like film shot by companies for use in training employees and customers.

Dolan bought such movies everywhere, edited and packaged them, and sold them to the newly emerging cable TV networks. He gave this meager profit business to Telenews, the largest cable TV station in New York at the time, in exchange for a job opportunity.

Then, using his position at the cable TV station, he developed relationships with New York builders who were building massive buildings after the war. He started a company that specialized in installing cable TV lines for them, and in doing so, he also inserted his own cable TV channels into the new buildings.

Later, Dolan's cable TV network in the New York area mainly provided regular season broadcasts of the New York Knicks basketball team and the New York Rangers ice hockey team playing at Madison Square Garden. The truly exciting playoffs were handed over to the league's broadcasters.

This regular season broadcast is very popular with viewers in the New York area. It is also Dolan's company's killer. If it weren't for the broadcast of these two professional events, his TV network would actually be average in terms of content competitiveness.

This time, Redstone's big sale, the property rights of Madison Square Garden and MSG Media, which consists of two professional teams, are his largest single sale assets. Dolan wants to go from being a broadcaster worker to the owner of MSG, and has been eyeing this big piece of fat for a long time.

However, Redstone was not easy to deal with. He offered a whopping $1 billion for the Square Garden and the two professional teams. Dolan mortgaged all his assets and could only get 400 to 500 million from the bank. For the rest, he had to find partners. Redstone needed to avoid a crisis in the upcoming fiscal year, so the $1 billion price was a one-time price, and he would sell it immediately.

Bastian was referring to Dolan's own TV broadcast network. If Ronald joined him and acquired the Square Garden and the two teams, then due to the long-term broadcast contract that had just been renewed, the broadcast would still belong to his TV station.

DDH also has a TV station and a radio station in the New York area. If it can get some regular season broadcasting time, it will be a virtuous cycle, making the assets produce a combined force that is greater than the sum of their parts and continue to appreciate in value.

If the broadcasting rights remain with Dolan's company, it would be equivalent to adding a big bargaining chip to Dolan, DDH's media competitor.

"What if I and some friends bid for the MSG Group with our private assets? If I get the broadcasting rights from Dolan at the market price, can you do better than him?"

After Ronald had some idea about this, he had a general idea.

"Dolan is best at arranging cable TV lines for new houses. Running a media outlet is not his forte. Over the years, he has not won any other professional sports events in New York State."

Ed Bastian was very confident. Dolan had not been able to negotiate for a large number of local TV broadcasts of regular season games of New York's two football teams, the Giants and the Jets, and two baseball teams, the Yankees and the Mets. His competitiveness was entirely due to the activation discount subscription package that came with the installation of cable TV.

"Let me make it clear, as long as I can take over a portion of MSG's shares, then even if DDH's TV station needs some costs to get the broadcasting rights, you can do better than Dolan and his team?"

"That's absolutely right... Of course, it would be better to get more than 51% of the shares, so that Dolan can't stop us with exclusive broadcasting rights."

Ronald hung up the phone with satisfaction and called Doug Jr.

"Doug, what do you think of this business?"

"Hey, you have a chance to take over Madison Square Garden? What are you waiting for? Do you need shareholders? I can provide the money..."

Little Doug fully understands Ronald's strength, and he also wants to continue to make money with Ronald. When he heard that there was an opportunity, he quickly expressed his intention to get on the bus. His wife Donna has made a lot of money with her cousin, so he has to make some money too, otherwise in front of his wife...

"Why are you so enthusiastic?" Ronald didn't quite understand. Little Doug wasn't so excited when he was filming movies before.

"Ronald, I'm a country tycoon and don't understand those things. But I understand the importance of land. You should remember what Scarlett's father said to her in Gone with the Wind, 'Land is the only thing in the world worth fighting for, the only thing that can last. Whether it's for money, for love, for honor, everything you fight for will disappear..."

“Only the land will always belong to you.”

Ronald also added the last sentence. He understood the shrewdness of these so-called local rich people. Madison Square Garden is located in Midtown Manhattan, just above Pennsylvania Station, very close to the Empire State Building and Hudson Square. White-collar workers on Wall Street only need to take five or six subway stops to get there.

This is a non-renewable monopoly resource, just like Scarlett's estate at that time. Not only is it difficult to find a suitable large plot of land to build a new sports stadium in Manhattan, even if there is one, it is politically impossible to pass...

All monopoly assets that cannot have competitors are the most powerful and profitable. In the next few decades, white-collar workers in Manhattan will have a stadium just 20 minutes away to watch a game after get off work. Regardless of the team's performance, Madison Square Garden will be their only choice.

Anyway, they go to watch the game not because they are fans, but as a manifestation of their identity.

"Steve, don't you want to be the owner of a professional sports team?"

Having made up his mind, Ronald immediately contacted Bannon and others to jointly form an acquisition group, and then extended a friendly invitation to Redstone and Dolan.

……

"Shouldn't he come to see me?"

Unexpectedly, the next day Charles Dolan came with a message, inviting Ronald to New York for a talk.

"He was very polite and said he wanted to talk to you, but his health was not good and his son could not attend such an important gathering on his behalf, so he had to ask you to fly..."

"OK, I'll go, just as a sign of respect for the elderly..."

Ronald arrived in New York on a late flight and immediately drove to Madison Square Garden.

"Ronald, this is Charles..."

Dolan greeted Ronald at the door of his office, but it was not clear whether he was really in poor health or just wanted to show off, so he just stood there with his hand outstretched, waiting for Ronald to come forward and shake his hand.

"Hello, Charles..."

Ronald didn't care much about this kind of false reputation, but he didn't like this person's behavior of taking advantage of his age. So he just called Dolan, who was old enough to be his grandfather, by his name, shook his hand a few times and let go.

"I heard that many famous competitions and concerts have been held here. Can you take me on a tour?"

"Of course, please follow me..."

Dolan did not get angry, but pointed to the place where the honors were displayed and asked Ronald to go first.

"This is a photo of Ali vs. Joe Frazier in 1971. At that time, the new stadium had just been built for three years. It was hailed by boxing fans as the fight of the century..."

"Didn't you hold Tyson's?"

"Um, this was last year's Eastern Conference Finals between the Bulls and the Knicks... We were leading 2-0"

"Why did they lose four games in a row?"

"The Rangers have a lot of momentum this year..."

"Hmm..." Ronald knew very little about professional sports, but his casual remarks hit Dolan's soft spot. He only didn't know much about the ice hockey league, so he could only perfunctorily respond. After listening to Dolan's bragging for a few words, he pointed at the poster opposite and said impatiently, "Is this a concert?"

"This is a concert held here by Elvis, Lennon, and Queen... The greatest band should hold a concert in the greatest city..."

"Well, it turns out that this venue is first-rate for concerts..." Ronald nodded. He knew a little bit about concerts. The framed posters on the wall included those of Madonna, MJ, and some current pop stars...

"There are also dogs..." Ronald found something interesting again. Madison Square Garden also holds various dog competitions every year...

"Ronald, let's go to my office to talk. It's a pity that my son James is not here, otherwise he would have a great time with you..."

"Oh, what's wrong with him?" Ronald also turned his face away and agreed to go to Dolan's office to sit down and talk.

"James has a bit of an addiction problem..."

"Would you like me to recommend a drug rehabilitation center to you? I throw some unruly Hollywood stars in there before filming, and they come out clean..."

"Just kidding, my health is not very good. I have placed great hopes on James..."

Dolan let out a long breath, took a rest at the table, drank a sip of water and said to Ronald, "I already know why you're here. What do you want to do?"

"It's not what I want to do, it's what you want to do. I could have bought the stadium and the two teams myself, but Sam (Redstone) said that you had expressed similar ideas to him a long time ago, and said that your broadcasting has made a great contribution to the team. If I am wise, I will keep you..."

Ronald didn't give Dolan the opportunity to show off. The current situation was very clear. Dolan needed him, and he could do without Dolan.

"Hey..." Dolan took a deep breath, "I envy you very much, Ronald. Every time I see my eldest son James, I think, if he had half of your ability... no, a quarter of your ability, I would be happy..."

"So, Mr. Dolan, we are all busy people, what are your terms? Ronald doesn't buy it.

"I want to split the deal with you 50-50. We'll each contribute $500 million and get half of the shares..." Dolan put forward his conditions.

This was the result of careful consideration. If he paid too little, he would definitely not have the final say on the shares, and he would not be able to stop Ronald from doing anything. If he paid too much, he would not have the money... In this way, with a 50-50 split, he could rely on the broadcasting rights in his hands to slowly create partners, and after a long time, he could squeeze him out.

"You must be kidding... I appreciate your sense of humor." Ronald laughed. "How about this, I won't take advantage of you. I'll pay 55 million and you'll pay million. Your broadcasting agency can get a discount, and I'll own % of the shares. My DDH can purchase the broadcasting rights of the two teams at a preferential price."

"Ronald, this price is not fair. My company has been a broadcaster for 20 years and has built up a very professional team of reporters..."

Ronald sneered. The quality of these broadcasting teams was really average and they were often scolded by fans. Moreover, they were afraid to spend money and gave the key games to the league's national broadcasters. Fans couldn't watch them without subscribing.

"I'm not here to discuss with you how much your broadcasting company is worth. I'm here to put forward an idea. You can bargain, but I must obtain a majority stake in the company. If you are willing, then let's do this..."

"What if I don't want to?" Dolan sat up straight in his chair. He was not without external help. He had already found a Canadian multinational company, ITT Group, for a 50-50 plan. The other party was very willing to make a financial investment and was very interested in spending 500 million to buy an asset with appreciation potential, holding it for a few years and then selling it.

"That's easy. I'll find a partner and buy you out..." Ronald stated his plan calmly.

He is willing to raise the price. As long as the total purchase price is raised to more than 1 billion, Lei Shidong will not bother with all your trivial matters. The one with the highest bid will definitely win.

In this way, Dolan himself has no money and cannot find more investment partners in a short time. Lei Shidong, who is eager to sell, can make a choice without thinking too much.

"You..." Dolan was unhappy. He took a deep breath and said, "I think you are not as stupid as Barry Diller. What good will it do us if you raise the price unreasonably?"

"Controlling rights, broadcasting rights, if you agree, we can have the accountants and lawyers come up with a takeover plan today..."

"I still want to..."

"Think about it slowly. I'll go meet my friends on Wall Street. They still have doubts about why I bought Square Garden. I should explain it to them..."

"Okay, okay, you have the majority..." Dolan compromised. If he bids higher, he won't get any benefit. On the contrary, there is still some room for maneuver. Ronald will pay 51 million and take % of the shares. Anyway, this guy doesn't understand the operation of sports broadcasting. He still has time to deal with it in the future. It would be great if James could be so capable. Dolan sincerely hopes that his son can be more powerful so that the family wealth can be passed on.

"To be honest, I was still surprised after seeing the letter from Wall Street endorsing your credit...Everyone knows that your DDH is listed, but your personal wealth is beyond many people's expectations." Dolan returned to normal and suggested that Ronald stay and watch today's game.

"I have made some money in securities investment... You don't believe it? It's very simple, just buy low and sell high..."

Ronald smiled and shook Dolan's hand, then said, "Can I make a phone call?"

"Please..."

"Hello, Spike? This is Ronald. I'm at Madison Square Garden. There's a game between the Knicks and Cleveland tonight. I want you to watch it in the best seat..."

The person on the other end of the line was film director Spike Lee. "Ronald, don't underestimate me. I also have tickets to the show..."

"This is the best courtside ticket. You can high-five Ewing..."

"Then I'll do it, I'll do it..."

Ronald knew that Spike Lee liked to watch the Knicks games, so he tried to imitate Jack Nicholson by buying a ticket to the sidelines and appearing in the broadcast to express the idea that black people in Hollywood could also become big names.

"Mr. Dolan, my friend wants a set of courtside tickets with the best seats. Is that okay? He wants one for next season as well. I'll give it to him as a gift..."