Mets exploring partial sale of team

[BigJonEmpire]

The New York Mets are exploring a partial sale of the team as they face a lawsuit from a trustee trying to reclaim money for victims of the Bernard Madoff swindle. Court-appointed trustee Irving Picard has said the Mets made nearly $48 million in Madoff's scheme. He said the Mets originally invested about $523 million, but eventually withdrew about $571 million from the accounts.
The Mets' owners, Fred Wilpon and son Jeff, say they are looking into the sale to "address the air of uncertainty created by this lawsuit." They also want to provide assurance that the team will continue to have the "necessary resources to fully compete and win."


The Wilpons have retained former deputy baseball commissioner Steve Greenberg to assist them.

Read more: http://sportsillustrated.cnn.com/201...#ixzz1CMYszYWX

[joncarlos]

Lots of contracts coming off the books soon, great new stadium, great city, very good (new) management team in place, and a pretty solid fan base. I'd imagine they're a good investment opportunity despite their current mess. And I wouldn't be surprised to see whoever buys in now eventually buy out the Wilpons entirely, or at least become a majority partner and let the Wilpons sit on the sidelines collecting cash.

[BigJonEmpire]

Lots of contracts coming off the books soon, great new stadium, great city, very good (new) management team in place, and a pretty solid fan base. I'd imagine they're a good investment opportunity despite their current mess. And I wouldn't be surprised to see whoever buys in now eventually buy out the Wilpons entirely, or at least become a majority partner and let the Wilpons sit on the sidelines collecting cash.

And that would probably be for the best even without the Madoff stuff as motivation.

[jayjaybee99]

It's funny. First the worry was the Mets ownership lost their fortune and they won't be able to compete. Now it turns out they made money, but because of that they are open to litigation and that is the risk that is pushing them to look at options to add diversity into the ownership. Go figure.

[Erik]

Their ownership could definitely use some diversity. This will probably help them in the long run.

[revo]

It's funny. First the worry was the Mets ownership lost their fortune and they won't be able to compete. Now it turns out they made money, but because of that they are open to litigation and that is the risk that is pushing them to look at options to add diversity into the ownership. Go figure.

This isn't surprising, as it's been well documented since mid-2009 that the Mets made money on Madoff, and that they would eventually have to pay the piper on these "stolen goods." But today's NYT report that it may not be $48m that needs to be repaid, but $1bn is the real issue. I have no idea how it's $1bn, but if it is....buh bye Mets.

[Juiced]

Is this thing on? Felt like I came home (RJ) and all the furniture was moved out - only I had no notice of a move.


The Steinbrenner family owns just 32.9% of the Yankees, but are still the majority owners.
The Mets are one of the few sports organizations to still have one family own so much of the team (probably 99%).

[wilbur wood]

Any phasing out of the Wilpons will be a positive for the team.

[Wanksta]

This isn't surprising, as it's been well documented since mid-2009 that the Mets made money on Madoff, and that they would eventually have to pay the piper on these "stolen goods." But today's NYT report that it may not be $48m that needs to be repaid, but $1bn is the real issue. I have no idea how it's $1bn, but if it is....buh bye Mets.

I think the $1bn threat is only there to motivate the Wilpons into settling. I suspect the Wilpons will pay their $48m, but even that meager sum will probably force them into a partial sale.

[Don Quixote]

I think the $1bn threat is only there to motivate the Wilpons into settling. I suspect the Wilpons will pay their $48m, but even that meager sum will probably force them into a partial sale.

I think the threat may be to demand the gross amount they got back, and the reality is the profit. What they should give back is something in between, so that all parties feel the financial pain in similar percentages.

Of course, if Madoff would come clean on what he did with most of the money, that would help more, but that's a separate subject.

[onejayhawk]

What I can say about the Mets is best summed up in this line from Scoutingbooks closer watch.

The Mets bullpen should remain a confused mess for the foreseeable future, but in that way it fits in quite well with the 'plans' produced by the front office.

J

[netboy47]

Uh, oh. The Mets may be on the hook for 300M?

http://www.msnbc.msn.com/id/41427160/ns/business-sports_biz/

[Don Quixote]

Uh, oh. The Mets may be on the hook for 300M?

http://www.msnbc.msn.com/id/41427160...ss-sports_biz/

These partnership structures are usually complicated, in some cases to reduce liability, in others to fog the mirrors. I'm not sure the Mets per se are potentially on the hook, but the Sterling partners may be. I'm sure Mets fans would love it if the Wilpons were to be forced to sell the team, but the nature of this litigation and potential liability will scare off some potential buyers and drag out any sale negotiations for all.

In other words, don't hold your breath waiting for a settlement and/or a sale of the team. These are opening moves, not the endgame.