Year in Review
Growing through war, recall, strikes
January
Trouble Signs: Workers’ compensation and the state’s yawning budget deficit roared into view and the twin crises continued to dominate the political landscape throughout the year playing a major role in the recall of Gov. Gray Davis.
Port Deal: L.A. and Long Beach dockworkers ratified a five-year contract that was reached the previous November. The deal was brokered by federal mediator Peter Hurtgen, who would be tested again in the grocery workers’ strike later in the year.
Football: NFL Commissioner Paul Tagliabue named Los Angeles as site of the league’s next football team, setting in motion a still-unresolved competition between the Coliseum, Pasadena’s Rose Bowl and a possible site in Carson.
February
Antitrust: New Times Media and Village Voice Media agreed to pay fines of $375,000 and sell some assets to settle Justice Department allegations they colluded to close rival publications in Los Angeles and Cleveland.
IPO: With the stock market reeling, developer Robert Maguire began looking for alternative sources of funding for his planned initial public offering in Maguire Properties. He later went through with the IPO.
Downgrade, Vol. 1: In response to the state’s budget crisis, Moody’s Investors Service lowered California’s debt rating to A2 from A1.
New Reins: Northrop Grumman Corp. named Ronald Sugar its chief executive, replacing Kent Kresa. Later in the year, Sugar took on the additional title of chairman.
March
Jobless: As if the state needed another financial crisis, the Unemployment Insurance Trust Fund fell to a point where the 15 percent “emergency solvency surcharge” threatened to kick in as it later did, triggering higher payroll deductions starting Jan. 1.
Haircut: Gemstar-TV Guide International restated its reported revenues for the previous three-and-a-half years, following an earlier restatement in October 2002. Former Chief Executive Henry Yuen dug in his heels in a legal battle with the Securities and Exchange Commission, which sought a court order compelling him and former Chief Financial Officer Elsie Leung to testify.
Bananas: Shareholders of Dole Food Co. approved Chief Executive David Murdock’s plan to take the company private for $2.5 billion.
April
Fill ‘er Up: Gasoline prices soared well beyond the $2 per gallon mark and beyond as a result of refinery problems in California and the severing of a pipeline in Arizona. Prices fell for much of the late summer and fall.
Fever Pitch: SARS was more of a phenomenon than a pandemic in Los Angeles, as only a handful of suspected cases none ever confirmed were found locally.
Rock Bottom: The popularity ratings of Gray Davis fell through the floor as he took blame for his handling of the state’s budget deficit and the economy.
Trifecta: Venture funding levels nose-dived in the first quarter thanks to the war in Iraq, the economy and the falling stock market.
May
More Football: Pasadena put the finishing touches on its bid to lure an NFL team. City officials were disappointed when the NFL later invested $10 million to fund a rival effort in Carson.
Richest: Billionaire Eli Broad recaptured the title of L.A.’s richest Angeleno, with a net worth of $5.9 billion. Marvin Davis ranked second and Kirk Kerkorian third.
Out: Tenet Healthcare Corp. Chief Executive Jeffrey Barbakow quit amid a federal investigation of the company’s Medicare billing practices.
June
Dilemma: Democrats pondered how to react to the recall effort that eventually unseated Gov. Gray Davis. He pressed the party not to put up an alternative candidate, but Lt. Gov. Cruz Bustamante decided to enter as a replacement candidate, later losing badly to Arnold Schwarzenegger. The action star announced his plans to run on the “Tonight Show.”
Topless: The adult entertainment industry decried a planned L.A. ordinance that would limit activities at the area’s legion of strip clubs and adult video arcades. Pressure on the City Council eventually scuttled a proposed ban on lap dancing.
July
Downtown Decision: As part of the battle between the city and county over designation of 879 acres downtown as part of a redevelopment zone, an L.A. Superior Court judge ruled that the project area was invalid.
LAX Scaleback: Mayor James Hahn’s airport overhaul plan was trimmed to reduce the size of a $1 billion, 1.5-mile underground baggage tunnel.
Cable Deal: Metro-Goldwyn-Mayer sold a 20 percent stake in its three cable channels to Cablevision Systems Corp. for $500 million in a move some saw as an effort to raise cash for a play at Vivendi Universal’s entertainment assets. The following month, MGM dropped out of the bidding.
Global Approval: Global Grossing Ltd. won bankruptcy court approval to sell a 61.5 percent stake to Singapore Technologies Telemedia Pte. In December, Global emerged from bankruptcy protection.
No Show: Members of the Screen Actors Guild and the American Federation of Television Artists narrowly voted down a proposal to merge the unions.
Overture Overture: Internet giant Yahoo Inc. agreed to buy Pasadena-based Overture Services Inc. for $1.6 billion in stock and cash.
August
Poor Credit: California had its credit rating cut again, to A3 from A2 by Moody’s Investors Service, which cited a budget calling for $14 billion in borrowing and continued shortfalls.
Business Team: Mayor James Hahn’s business team was shaken up with the departure of his deputy mayor for economic development, Jonathan Kevles. Kevles took a post with the Community Redevelopment Agency.
September
Grocery Lines: Both sides took a hard line as unionized grocery workers and the major chains dug in at the start of contract negotiations.
Tenet Shuffle: After a summer of scandals that saw Tenet Healthcare Corp. come under investigation by at least three federal agencies and sell off hospitals, Trevor Fetter was named chief executive, replacing Jeffrey Barbakow.
Landmark Sale: Dallas Mavericks’ owner Mark Cuban purchased the Landmark Theatres chain, which had been on the block for two years.
October
Strike On: A strike against Vons and Pavilions stores by grocery workers was met a day later with a lockout by the Ralphs and Albertsons chains. Soon after, Metropolitan Transportation Authority bus mechanics walked off their jobs for more than a month.
The Governator: Gray Davis was recalled and Arnold Schwarzenegger was elected governor. Schwarzenegger received more votes in the election than did Davis in his November 2002 run.
Screener Ban: In an effort to stem motion picture piracy, the Motion Picture Association of America, representing the seven largest studios, decided not to send out DVDs and tapes as part of its annual pre-awards ritual. Independent producers screamed, and a federal court later ordered a stay.
Universal Appeal: Vivendi and NBC came to terms on a $14 billion cash, stock and debt deal that gave the broadcaster three cable networks and a Hollywood studio. Vivendi retains a 20 percent stake in the new company, called NBC Universal.
Open Season: The Walt Disney Concert Hall opened to considerable fanfare, generating an increase in foot traffic downtown and new life for nearby restaurants.
Dodger Deal: News Corp. struck a deal to sell the Dodgers to a Boston real estate developer for around $430 million. The deal with Frank McCourt, who failed in earlier plays for the Red Sox and Angels, included the stadium and surrounding property.
November
Virgin Territory: City and state officials started lobbying Sir Richard Branson to base a planned low-cost domestic airline in Los Angeles. A half-dozen cities were said to be competing for the headquarters.
Airport Scrutiny: Los Angeles World Airways and the commission overseeing it were being looked into by a variety of agencies, including the district attorney and the ethics commission. Later, an audit by the city controller would blast the airport operation.
Music Play: Edgar Bronfman Jr., who lost out in a bid to reacquire Universal’s entertainment assets, agreed to a partnership with Thomas H. Lee Partners to buy Time Warner’s music business for $2.6 billion in cash.
December
Disney Drama: Roy Disney, nephew of Walt Disney and one of the largest individual shareholders in Walt Disney Co., resigned from the board after reaching the company’s 72-year age limit, and being told he would not be nominated for reelection. He responded by unleashing a barrage of criticism at Chief Executive Michael Eisner. Also resigning from the board was Stanley Gold, who joined Disney in criticizing Eisner.
Disney Dominance: Disney’s movie studio, on the strength of “Finding Nemo” and “Pirates of the Caribbean,” said it would hit an industry record $3 billion in total domestic and international box office. The record of $2.86 billion was set last year by Sony Pictures Entertainment.
Direct Approval: The staff of the FCC approved News Corp.’s $6.47 billion acquisition of the General Motors Corp.’s 34 percent interest in Hughes Electronics Corp., owner of DirecTV.
Hilton Sale: Merv Griffin announced he had struck a deal with Beny Alagem, an investor and co-founder of computer firm Packard Bell, to sell the Beverly Hilton Hotel.
