26
2011
New Minor Owner, Same Major Problems
An article by 
The Mets have the minority owner they hope will be able to bail them out of their major financial mess in the fallout of the Bernie Madoff Ponzi scheme.
David Einhorn, president of Greenlight Capital Inc., will purchase 49 percent of the team for roughly $200 million. The sale does not include any ownership segment of SNY. The $200 million will go toward paying down the Mets’ considerable debt, which includes repayment of a $25 million loan to Major League Baseball.
The Mets confirmed the sale this morning in a press release, saying Einhorn has a non-operating stake in the team.
“We are very excited about David joining our ownership group for several reasons,” owner Fred Wilpon said. “David’s investment immediately improves the franchise’s financial position. Equally important, David’s intelligence, integrity and success in both business and civic affairs provides us with another perspective in evaluating what is best for this organization and our fans, and we welcome his input. In partnership with David, we look forward to achieving our ultimate goal of again becoming World Series champions.”
EINHORN BIO
Einhorn, 43, co-founded Greenlight Capital in 1996. He is the author of “Fooling Some Of The People All Of The Time,” a book detailing his battles with Allied Capital. Considering how all this transpired and the parties involved in the Ponzi scheme, it is an ironic title.
Einhorn grew up a Mets fan and dressed up as Dave Kingman one Halloween.
“Having an opportunity to become part of the Mets franchise is exciting beyond my wildest childhood dreams,” Einhorn said in the release. “ I spent my first seven years living in New Jersey and rooting for the Mets. In 1975, I even dressed in a homemade jersey as a Met for Halloween.
“ I have been a baseball fan for my entire life and have enjoyed teaching the game as the coach of my daughter’s little league team. I look forward to partnering with the Wilpon and Katz families through the good seasons, the tough seasons and especially the championship seasons.”
Assuming the sale goes through, this is far from over for Wilpon, who said the Mets are “bleeding” cash and will lose up to $70 million this season. He’s still facing a $1 billion lawsuit from trustee Irving Picard, a suit that if he loses could force a complete sale of the Mets.
Should that occur, Einhorn will have first opportunity to purchase the majority share.
Reportedly, the Mets will have a payroll between $100 million and $145 million next season, probably closer to the former. Although the Mets will have several significant contracts off the books, GM Sandy Alderson said not to expect any lavish purchases in the free-agent market.
The Mets’ first major financial decision is considering signing Jose Reyes to a contract extension expected to be over $100 million.
In a magazine article, Wilpon criticized Reyes, saying everything (injuries) have happened to him and that the 27-year-old All-Star shortstop is misleading himself if he expects a contract similar to the one Boston gave outfielder Carl Crawford ($142 million).
The Mets would receive compensatory draft picks should Reyes sign with another team, but must weigh that in what they could get in a trade. The teams linked to Reyes in a possible trade include San Francisco, Boston, St. Louis, Toronto and Washington.
About the Author: John Delcos
I am an active member of the BBWAA and have covered Major League Baseball in several capacities for over 20 years, including ten in New York working the Mets' and Yankees' beat. I covered the Baltimore Orioles for eight years and the Cleveland Indians before that. I currently serve as an editor and senior staff writer for Mets Merized Online. Follow me on Twitter @jdelcos.
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a band aid on a shot wound.. that’s my take on it. ppl are excited but fail to see the truth, the wilpon sold 25% to this guy to pay some debts, that guarantees them to at least go to picar and try to settle again, making the wilpon the owners for MANY years to come..
Agreed. Unless Wilpon gets major surgery to get his head pulled out his ass, this team is better off without the mess the Wilpon name has brought to the team in recent years.
More pontificating about something that you will once again be proven wrong.
This is one of the brightest days for the Mets in a LONG time. This guy has a brain between his ears and if you or anyone else thinks he’s going to settle for minority ownership for a longtime, I’ve got a bridge to sell you.
Pay attention, do some homework……….get a clue
meant to say a band aid on a bullet wound
This deal say to me that the Wilpons are going to put whatever money they used to put into Madoff into Einhorns fund now. And Einhorn agreed to give them the 200 Mil more as a loan than an actual team purchase.
Business deals like that are made all the time. Especially with guys who run funds.
So he is more like the Wilpon’s broker than their partner.
Meet the new HONEST (we hope) Madoff!
Evan Roberts on WFAN just said something funny. He said that in 35 years when the Mets build a new stadium to replace citifeild, it’ll be built to look like the old County stadium in Milwaukee since Einhorn was also a Brewers fan ala Wilpon the Dodger fan.
Actually it should be built to look like the North Carolina prison Bernie lives in and the luxury boxes should look like his cell. Can you imagine the food at the concession stand?
I’m trying to figure out if that’s his hair or not.
At 200 mil for 25% that would be 800 mil for the whole team. Losing 70 mil and a downward spiral in attendance and a team ready to dump it’s star players, someone smarter than me would have to explain a value for the Mets at 800 mil. Help me out here. If 800 mil was to buy the team it would take an additional 100 mil to get star players or the team would continue to bleed money. I am sorry I just don’t see it. Einhorn may be a smart money manager but there is something else going on here. Wouid love to see the contract, I bet there are some confidentiality clauses in there.
Pathetic. Another of Bud’s boys gets in the club… Einhorn’s a neighbor, no less. Let’s see now. Bud has “moneyball” Alderson running the on-field Mets and keeping the Aamazin’s out of Free Agent shopping… thereby depressing the market; He now has Einhorn ready to take over the franchise if the Wilpons and Katz have the Madoff/Picard lawsuit go against them. Nice job, Bud. Loria in Montreal/Florida; John Henry and the Red Sox/Marlins… now Einhorn… cooling his heels until the Mets become available. No wonder the fans see MLB as corrupt. Why else would Einhorn invest money with the Wilpons? Would you?
lets see geniusalderson KNEW nothing about steriods being done by his bash brothers.dud selig DIDN’T realize about steriods either. freddye wilponzie KNEW nothing about madoff’s stealing.this einhornpipe is just another blowhard looking to sucker the suckers.ya gonna keep reyes einhornpipe?
That’s what he’s here for Baby Al. Put up the 200 M, get us back on our feet, walk away with a 50M commission in three years.
Job #1 is Reyes. Without him that 200 M investment loses 50 M cause a team losing 70 M a year WITH Reyes will lose 120 without him.
hope so,ta.
What is pathetic is some “mets fan” find new ways of finding negativity in one of the better things that have happened in a long time. Take off the hate blinders and realize this is the first step in the right direction, and pushing Wilpon out the door.
This guy is not just some schmuck off the street or some guy writing comments on a blog.