Home MLB News MLB Club Sales Mets Enter Exclusive Agreement to Sell Minority Interest to David Einhorn for $200M

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 348 guests online

Atom RSS

Mets Enter Exclusive Agreement to Sell Minority Interest to David Einhorn for $200M PDF Print E-mail
User Rating: / 1
PoorBest 
MLB Club Sales
Written by Maury Brown   
Thursday, 26 May 2011 11:46
David Einhorn
Could this eventually be the young ownership face of the New York Mets?
David Einhorn has entered an exclusive agreement to purchase 49% of the
club for $200 million

The New York Mets today announced that David Einhorn has been selected as the team's preferred partner and that the Mets and Mr. Einhorn have entered into exclusive negotiations with respect to a minority, non-operating investment in the team. The $200 million personal investment by Mr. Einhorn is subject to the negotiation of a mutually acceptable definitive agreement for the transaction, as well as required approvals by Major League Baseball. According to multiple reports, Einhorn will be purchasing less than 49 percent of the Mets, just below controlling interest. Reports as to the amount being purchased have flucuated from 25 to 33 percent, possibly more. The parties expect to enter into definitive agreements by late June.

"We are very excited about David joining our ownership group for several reasons," said Fred Wilpon, Chairman & Chief Executive Officer, New York Mets. "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."

Mr. Einhorn stated, "Having an opportunity to become part of the Mets franchise is exciting beyond my wildest childhood dreams. 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."

Mr. Einhorn is President of Greenlight Capital, Inc., a private investment firm which he co-founded in January 1996, and is Chairman of the Board of Greenlight Capital Re, Ltd. Along with his wife, Mr. Einhorn formed the Einhorn Family Charitable Trust, whose mission is to help people get along better. He also serves on the Board of Directors of The Michael J. Fox Foundation for Parkinson's Research and the Robin Hood Foundation.

At $200 million, the investment by Einhorn would come to approx. one-half the current $400 million value that Forbes recently placed on the club if the controlling interest were 49 percent, after Fred Wilpon said to Sports Illustrated that the Mets would lose $70 million this year, or $10 million more than the club projected at the beginning of the season. There is no word on whether Einhorn has any clauses in the agreement by which he would have access to purchasing the controlling interest in the club.

Einhorn was quickly approached after Stephen Cohen backed out of the minority purchase. Cohen is under possible investigation for insider trading.

Sterling Equities, who own the Mets, have been under exceptional legal pressure due to the Bernie Madoof ponzi scandal. Irving Pichard, the trustee for the Madoff victims, is seeking $1 billion due to Sterling’s association with Madoff. Sterling has countered that they are another victim of the largest ponzi scheme in US history.


SPECIAL BUSINESS OF SPORTS NETWORK REPORTS:
The Labor Battle in the NFL. See BizOfFootball.com for details

Welcome to the 2011 Business of Sports Network Autism Challenge


Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey, as well as a contributor to FanGraphs and Forbes SportsMoneyHe is available for hire or freelance. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?