3
2012
Time Warner and Comcast To Purchase 16% of Mets
An article by 
Richard Sandomir of the New York Times reports that Time Warner Cable and Comcast are nearing a plan to finance SNY’s purchase of four shares in the Mets, worth $80 million.
Time Warner Cable and Comcast are nearing a plan to finance SNY’s purchase of four shares in the Mets, worth $80 million, said one person with knowledge of the plan who was not authorized to speak publicly. If the deal is completed, the Mets would appear to have buyers for the 10 shares they are selling.
The deal would mean 16 percent of the Mets would be owned by SNY. The Mets’ parent company, Sterling Equities, owns 70 percent of the network.
Lee Berke, the president of a media consulting company, said that Time Warner Cable and Comcast “don’t want to see the team stumble as it has been, because it directly impacts what they’re putting on TV. This is shaping up as a multiyear downswing for the Mets, and this is a way to keep them above water.”
I’m not sure that 16% would be owned by SNY.
Yes, Time Warner and Comcast own stake in SNY, but if they are buying 16% in shares of Mets, what does that have to do with their stake in SNY?
Is SNY buying the shares or Time Warner/Comcast buying the shares?
About the Author: Joe DeCaro
I'm a lifelong Mets fan who loves writing and talking about the Amazins' 24/7. From the Miracle in 1969 to the magic of 1986, and even the near misses in '73 and '00, I've experienced it all - the highs and the lows. I started Mets Merized Online in 2005 to feed my addiction. Follow me on Twitter @metsmerized.
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Reads to me as if TW and Comcast are financing the purchase of 4 shares by SNY.
‘As for Time Warner Cable and Comcast, it was not immediately clear why they would not invest directly in the Mets. But the two companies clearly want to put money into Wilpon’s financially beleaguered hands (the club has lost some $120 million in the last two years), even if it has to be routed through SNY, to ensure that the team meets its $200 million goal.’
2 additional shares bought by Sterling.
According to this article, when a 200 MIL share was up for sale, dozens called saying they couldn’t swing that but would be willing to buy a smaller share.
‘“We’ve had calls from people who said, ‘We can’t put up $200 million, but we can put up $20 million,’ ” he said at the time. “There are dozens who have contacted us.” He said a lineup of “legitimate Mets fans” who wanted a small slice of the team would be “more collegial, a lot of fun and a lot less stressful” than having a single minority owner.’
If the above is true, where are the rest of these ‘dozens’ of investors? 6 out of the 10 going to SNY and Sterling? Hmmmmm…….
Agree that this looks fishy. Little doubt that Selig will let the Wilponzis get away with yet another scheme.
This is certainly confusing and ultimately I really don’t care as long as they continue to build for the future and when the time is right are able to spend to support it.
WILPONS ARE DOING EVERYTHING TO KEEP TEAM.
To me it looks like they couldn’t get enough investors, so TW and Comcast stepped up and protected their interest. Wouldn’t be shocked if there is a way for them to get more control out of SNY as some sort of contingency plan.
How does this really protect Time Warner and Comcast if the money will not be used to improve the main product on SNY?
They make money through ratings/advertisement on the channel. So if the team was to go through a serious BK re-organization, the ratings would decline way more than they already have and the turnaround for the team to get back into investing would be on hold until BK is mediated or if the team is sold. . It also give them a instrument to make interest on the funds.
No Salty as usual you have it backwards!
People who are Met Fans may decide to not go to the game but that does not mean they stop paying attention and watch them play on TV.
ratings usually go up for the regional broadcasts in bad times because it takes no effort and costs nothing to turn on the TV.
Only if the team is so horrible it is actually UNWATCHABLE and depressing to see will ratings get affected!
And that usually only applies to the months of August and September when the team is already 20+ games out!
Which is quite possible the way Sandy has been DECONSTRUCTING the team!
I believe we are in full agreement you are just trying to disagree with me.
Me – “So if the team was to go through a serious BK re-organization, the ratings would decline way more than they already have and the turnaround for the team to get back into investing would be on hold until BK is mediated or if the team is sold”. .
You – “Only if the team is so horrible it is actually UNWATCHABLE and depressing to see will ratings get affected”!
Ratings are lower that a few years ago, but where it affects investors is if the team is put in a situation like BK which would stop any future investment until issues are resolved. I think this would depress the fanbase.
Also your 10 paragraph statement was mostly what I said above. We are on the same page, we just don’t like each other.
If the ratings go down in the late innings, would not that have an affect on advertising revenue?
There are apt to be less fans watching a game in the late innings as opposed to the early and middle ones if we are behind by six or seven runs in a listlessly played contest. There would be more watching if the score was closer. Many of us turn off a game which seems to be a blowout, only occassionally hitting the remote control button to see the score before switching back to another channel.
I have no idea how or when the ratings are calculated or how long you have to have it on for it to count.
http://www.nielsen.com/us/en/measurement/television-measurement.html
I imagine they charge different amount for advertisements that are placed at different times of the game. Also with DVR’s (probably not much effect on the Mets viewership) if it’s not viewed within a short window like 24 hours, it is not counted.
That is something I have always had no interest in. To me it’s like the election predictions and calling a race with 10% of the votes counted.
Your exactly right. It is also subject to volunteers pacing a device on the TV to track these items. I have never met anyone that has one of those, have you?
Nope they are the same pretty much throughout the course of the game.
And based on Time of Day not Time or type of Inning!
You buy 9pm no matter what inning may fall at that time!
And it’s usually the same price no matter what time as your overall ratings suggest!
The only Ad revenues that go up or down based on inning and events are the ones the team sells themselves (independent of the network).
The 7th inning stretch is sold as it’s own spot and has it’s own pricing, Same for the Post game and pre game spots.
None of those go to the network anyway!
Ok so, lol, this is too cute. Time warner and comcast are giving Sny the money to buy shares in the Mets. Now dissect this bit of language. The Wilpons are majority owners of SNY. Time Warner is giving or (lending) money to the WIlpons so they can buy stock in a team that they already own. This is what is wrong with our financial system. That is a bunch of legal mumbojumbo for Time Warner giving or loaning Money to Fred. In this way, if it is a loan, TW will fall back on SNY which is fluid instead of Sterling. What a bunch of milarky. I am reminded of a similar scheme that happened to my family where a group of people owned two buisnesses one was a property holding company and the other was the buisnesses that were on the holding companies land. This was a tax scheme so that the holding company could charge the real buisness whatever it wanted for land lease in order to keep the real company from ever turning a profit. Eventually the whole thing collapsed and everyone who was employed by them lost their job, however the owners made out like bandits.
Sorry Nathan but your wrong….
Wilpons are NOT majority owners of SNY!
Majority owners of the Mets but that does not mean squat as far as the network is concerned.
Sure it does. Technically the Mets do co-own the station.
SNY.tv: The Official Site of SportsNet New York
sny.tv/
The official site of the team-owned television network. Includes news from all area sports teams, plus video, scores, schedules, and standings.
It’s apparent your not a Math teacher….
CO-OWN and MAJORITY OWN are two different things you know!
They own (and by they it’s Sterling who owns the mets and SNY not the Mets who own Sterling and SNY) an equal share with TW and Comcast!
They do NOT own the majority of the shares!
Not even CONTROL of the network!
But Sterling does….
“That means they will have much-needed cash to pay off their substantial debts. But it would be a slightly quirky way of doing it. The deal would mean 16 percent of the Mets would be owned by SNY. The Mets’ parent company, Sterling Equities, owns 70 percent of the network. “
Right but based on what I am reading basically the guys who CO-own SNY at 30% are coming up with the cash so their own network can buy shares but doing it under the name of SNY.
Thats a typo your reading….they DO NOT own 70% of the network, they DI own 70% of the team now that they sold off their shares!
What are you talking about? Even Forbes just reported that Sterling owns close to 70%. I have seen reports as low as 65% but all have them as the majority owner. How about you do a little research and provide a link that they are not and what percentage they hold.
Sterling owns 70% of SNY
http://www.nytimes.com/2011/02/03/sports/baseball/03sny.html
“But for Wilpon to sell a substantial part of the Mets’ nearly 70 percent stake in the network, he would first have to offer it to his partners, Time Warner Cable and Comcast — which together own about a third of SNY”
So it does appear however that I am decent at reading comprehension as well as research skills.
Did you see what we posted last night regarding his thoughts about public workers like you? This guy is a real piece of work.
Yeah, I saw that. It does not bother me because I take solace in the fact that he is actually helping pay my salary… HA.
HaHaHa. I normally don’t allow my self to get caught up on political discussions, it’s not good for my health but I feel there is no place for that kind of created ignorance. Pulling the 9-11 card was probably a bit much but it was late in the night.
Is today a school day?
Why are you hetre and not teaching children?
Am i paying you to post on a blog?
Do it on your OWN time not my dime!
You still don’t get it. I am teaching children by being on here, it’s my way of giving back.
Well your not teaching me…
I am 49 and have a Masters and Doctorate in Engineering!
What you got slacker?
“you’re”
Owned.
You are right, I am currently unable to reach you. Perhaps that has more to do with your genetics and home life than my ability to teach.
http://www.huffingtonpost.com/2012/01/27/intelligence-study-links-prejudice_n_1237796.html?ref=mostpopular
Oh come now. With all due respect it’s not like the Huffington Post is the bastion of political neutrality. They are about as fair and balanced as Fox News is (sarcasm).
Now Gategem’s here!
This place is like TRDMB but with a few complete idiot/loser/morons!
Why don’t you go look up the SEC listing for SNY?
Instead of reading the Times which has been notoriously wrong for the past 10 years!
Should we look at Forbes as well, they also have them owning close to 70%?
More research on your dime.
Have links slappy?
I got plenty, how about you?
http://www.forbes.com/lists/2011/33/baseball-valuations-11_New-York-Mets_334564.html
SNY and Sterling Equities are private firms and are not subject SEC regulation and do not need to report information to the public.
What a moron.
So who is the Majority owner of SNY? The article suggests that Sterling owns 70% of SNY. Now I understand how all this is tied together but rationally looking at it Fred owns Sterling, Sterling Owns SNY, TW gives money to SNY, SNY buys Mets shares, Fred is majority owner in both compaines, fred just took out a loan to buy himself.
I knew this was coming but was sworn to secrecy on it!
Many have talked about using SNY profits to support the team and as I always told you, The Wilpons can not do that without their partners agreeing to it.
And they have agreed it is better for them both in the short term and the long term to make the commitment.
In the short term it will keep the team afloat which is likely going to be a boon to the ratings anyway as more and more people BOYCOTT going and instead will watch on TV which helps SNY Ad sales…
In the long term if the team can get back on it’s financial feet SNY could then sell off thier shares later on or actually increase it’s stake should the Wilpons ever be forced to sell!
Time Warner and Comcast are smart to protect their investment in SNY by helping the team.
The last thing they would like to see is one of their partner’s losing control of the Mets which could lead to SNY being yet another sports network without any sports team to broadcast.
By having SNY invest in the Mets they not only help thier partner but get some leverage later on if the Wilpons should ever be forced to sell. Time Warner and Comcast would probably step in as the first ones to try and buy the team or leverage the Wilpon situation later on for full ownership of SNY and a larger stake in the team just to be sure to keep the games.
The last thing the two partners want is Fan Apathy regarding the team because at some point those who refuse to go to the games might also refuse to watch them on TV as well!
Thats one thing both Time Warner and Comcast don’t want to see happen so everyone wins here except the folks who hate the Wilpons…
Right or Wrong as that opinion may be you have to admit this is a lifeline for them and will extend the time before their hand is forced one way or the other.
This is a shot fired at the Dolan’s aka cablevison,Donald Trump who want to get in on the Mets but at higher stakes
One thing I would love to see is a diagram off the financials for sterling/mets/sny (aka the wilpon’s Met empire).
The damned thing must look like the NYC subway map, with loops, companies owning themselves, etc.
Hey Joe D, going back to our discussion about Sandomir check out this article from back in 2005 about SNY. I guess they decided to pass on thw use of “Baseball Night in New York,”
http://www.nytimes.com/2005/09/30/sports/baseball/30tv.html
This is all getting to complicated for the avid Met fan like myself. All of this finagling and the shenanigans is starting to wear on me. I love the team , not the owners an I am going to focus my love for my team between the foul lines and on the players. All the rest of them can go you know where.
Went to opening day at my college today. It was so much fun. Yeah aluminum bats bite but man it was just baseball no B.S. no salary crap to think about just watching the game and enjoying my team winning.
Read the words to get the answer, is reading comprehension problem? TW and Comcast are NOT BUYING the shares; they are FINANCING them. This is nothing more than more leverage into the Wilpon’s empire. SNY will own the shares financed on a loan from the cable operators. With Sterling owning 70% of SNY, this is simply nothing more than an additional loan to the Wilpon’s already stacked high house of cards. No can see that this entire minority owner thing is just another of Fred’s smoke and mirrors show. Do the cable operators, really seek a close, intimate relationship with Mr Met?
By the way, the headline to this article is incorrect. TW and Comcast are NOT buying 16% of the Mets. They are loaning the money to SNY to buy the shares, which is actually a back-door loan to Sterling, and thereby to Fred. Just another tricky deal. Fred is outdoing Tricky Dick with sleight of hand.
Great and astute commentary.
AND THIS ALSO SHOWS THERE WAS NO OTHER INTEREST IN BUYING A MINORITY SHARE OF THE TEAM SINCE OTHER THAN THAN THE FOUR PERCENT ONE INDIVIDUAL OR GROUP FOR THIS 16 PERCENT LITERALLY STAYS WITH THE WILPONS IN A FORM OF A LOAN AND NOT THE INFUSION OF NEW CAPITAL. IF THERE WERE OTHERS, THE LOAN WOULD NOT BE REQUIRED.
Yes, it is amazing that, after all the hype about the multitude of prospective minority owners waiting in the wings to come on board, there are actually essentially none of them. So much for the allure of a close relationship with Mr. Met. Who is foooling whom here? Is it Fred tricking Fred, or Fred tricking us? Actually it is Fred trying to trick us, but the fans aren’t as stupid as he thinks! Fred continues in his role of con-artist and continues to roll out the smoke and mirrors.
seriously though, what does there financial shufflings have to do with “lying” to the fans? It really has nothing to do with the fans or the product on the field in any direct way.
so whether they borrow money from a bank, from their SNY partners, or some random rich guys, so what? I don’t actually feel it is any of my business.
Any,
What does it have to do with lying?
A month into the job Sandy tells us 2011 will just be a transition year regarding free agency because after that time they would not be burdened by contractual obligations to Castillo, Perez and other veterans in their final year – that’s one.
When spring training camp opened Sandy tells the press that the Wilpon’s financial situation has had no affect upon the operation of the ball club as the time it was revealed that the team needed a $25 million loan from MLB to cover it’s operating obligations – that’s two.
After sending off Beltran and KRod we’re told by our GM this reduced the financial burden in regards to payroll – that’s three.
Telling us all season long that the Mets were going to make every attempt within their means to keep Jose Reyes – that’s four
This fall Sandy reveals that the Mets lost $70 million which is forcing them to re-evaluate all aspects of the club’s operation. But businesses know throughout their fiscal year the direction its gains and/or losses are going so what was sudden news to us was old hat for the the the mets who were well aware of the financial decisions they would have to make for quite a long time (considering they also knew their debt payment schedule) – that’s five.
Getting back to Reyes, we’re told the Mets still wanted to pursue him while at the same time they were firing low paid workers, cutting back on all levels of operations (including that minor league team), were negotiating for another bridge loan and were in the process of hiring CRG – that’s six.
And all this time telling us their main goal was to “re-build” when they already had a team that with some additional help (not the crap they signed last winter) could still be a serious contender when it is now obvious their goal was only to dump salary – that’s seven.
Business wise, can understand the smoke screen for to avoid the inevitable loss of revenue as long as possible once the seriousness of the real situation and the actual reasons for dismantling the team became public. But that is still lying and they have been doing that through their teeth. And to charge outrageous prices for tickets, parking and concessions only adds to the insult.
Hey Joey if you haven’t noticed yet…
Lying is only a BAD thing in your name isn’t Sandy!
Joey you should know by now that you should not dare say anything wrong about Sandy Alderson around here. His Lordship has now overridden any previously considered original thoughts about being a Mets fan.
He is completely innocent and every single move he’s made has been the EXACT right and ONLY move that could’ve possibly been made. Do not contradict. Thou Shalt Not Want.
Guys,
And perhaps I was trying to be too fair always giving Sandy the benefit of the doubt and contesting he was taking the hits for the Wilpons and was being their fall guy instead. I am becoming to recognize that he knew exactly what he was getting into and was hired in part because he was the type of individual who has the talent to lie to the public with a straight face.
The biggest farce is telling us the Mets re-building because the players we had simply forced the issue. When the Wilpons took over majority ownership and hired Omar – that was the time to re-build for we had little in terms of quality players outside second year player David Wright and Jose Reyes. Piazza was on his last legs and age was starting to catch up with Cliff Floyd. Matsui was a bust and so were Victor Zambrano and Kris Benson. So if ever there was a situation that called for rebuilding it was then.
There was indeed the need for changes when Alderson was hired but a time for change is different from a time for re-building. This was 2010, not 2004 when we did not have hitters like Wright, Reyes, Beltran, Davis, Bay (a disappointment true), Pagan, Murphy a bullpen with a KRod, Feliciano and Takahashi, a rotation that included Dickey, Neise and Pelfrey and young kids like Duda, Gee and Parnell waiting in the wings. Yes, there were holes that we needed to fix and improve upon but that did not call for the entire structure to be torn down and starting over from scratch.
Sandy is a business person who knows what has to be done to retain the Wilpons as owners. And baseball, as we all know, is a big money business and has to be run as such. That’s why we have teams that go overboard with the reckless signing of players with superstar status which comes with the tremendous risk of having a team of marquee players that could under perform because it was put together not in terms of how they could mesh together but in hopes of big, instant profits suddenly being raked in for the present.
That also explains why baseball men have been replaced with business people who look at obtaining players through a combination of sabemetrics and value assignment in terms of dollars and cents (money ball). There is little baseball intuition involved and decisions are seen mostly all black and white.
In the case of the Mets, there were the added and reckless financial risks that went way beyond the outrageous multi-year contracts. With the Wilpons also came the concept that less (in terms of fans attending games) meant more (in terms of those who did go would be paying through the nose). With that much short-sightedness they certainly didn’t need a Bernie Madoff to get themselves into a financial catastrophe.
Thus the days of when baseball people like Gabe Paul, Johnny Murphy and Frank Cashen, who ran the show to put on the field the best team possible has been replaced by those whose qualifications are to run the franchise from the eyes of an accountant.
Come socialize with friends and play free games today!
With Comcast buying some shares does this mean that Comcast will put SNY on there Cable station????
Would be great if they did!!!!
I agree. Both Time Warner and Comcast currently own SNY. Now the Mets can finally escape their financial woes, sign players to mega contracts, trade players and win the World Series.