Photo: Steve Marcus
Charles Gasparino, the Fox Business Network correspondent who has followed the sale of the New York Mets closely, has reported today that the bidding for the franchise has largely come down to two entities: one led by Steve Cohen and the other reigned by Josh Harris and others.
The consortium led by Alex Rodriguez and Jennifer Lopez does not have enough cash to compete with Cohen and Harris, according to Gasparino’s sources. Of course, this could change in an instant if another investor or investors are added to the group.
There was no mention in Sunday’s report of any mystery bidders.
Cohen already owns an 8% stake in the Mets. He tried, unsuccessfully, to accrue the remaining assets this past February, but talks broke down. That deal valued the Mets at $2.6 billion, but that was before the coronavirus shut down major U.S. sports. MLB is scheduled to resume this week, with Opening Day on Thursday.
Further, the report notes that Cohen has begun reaching out to other MLB owners as to his viability to own the Mets due to his history of insider trading. On November 20, 2012, Cohen was implicated in an alleged scandal and later was named in a civil suit lodged by the Securities and Exchange Commission. Allegations and court room scuffling went on for years until Cohen settled the civil suit in January 2016.
Cohen’s company, S.A.C. Capital Advisors, pleaded guilty to insider trading charges in 2013 and paid $1.8 billion in penalties and was required to stop handling investments for outsiders. Cohen escaped criminal indictment himself despite being the living, breathing heart of S.A.C. Capital. The whole story was recounted in the book Circle of Friends, coincidentally written by Charles Gasparino.
Gasparino has noted on several occasions he has a vested interest in the business dealings of Mr. Cohen.
Sources indicate that Cohen would most likely survive a vote by owners.
Josh Harris, along with his principal partner David Blitzer, own the Philadelphia 76ers and New Jersey Devils and have other worldwide sporting interests. They are said to have the necessary assets to secure the Mets, some saying at a price of around $2 billion.
As for SNY, Cohen has made it clear that he wants to acquire the regional sports network even though current ownership has stated it is not for sale.
The sale of the Mets is being handled by investment bank Allen & Co., and both Cohen and Harris have thus far abided by the rules set forth by the financial institution during the process, with a resolution expected by the end of the season in October. Gasparino left the door open as to whether or not either entity would go over the head of the bank at a later date.
Clearly, the leader in the clubhouse is Cohen. Calling other MLB owners to assess viability even with his checkered past seems to imply that Cohen also believes he is a major factor in the Mets sale. It looks like the race is a match between two powerful organizations who can afford the team, SNY, and players to add to the Mets. What happens next is anybody’s guess.
