Wednesday, June 15, 2011
$1 to become majority owner?
By Adam Rubin
ESPNNewYork.com provided most of the substantive details of David Einhorn's confidential agreement to purchase one-third of the Mets for $200 million in late May. That includes that Einhorn will have the option to up his percentage to 60 percent in coming years, but can be blocked by Fred Wilpon and family if they return Einhorn's original investment and allow him to keep one-sixth of the team.
The cost to up the percentage from 33 percent to 60 percent if the Wilpons cannot block the option by returning the $200 million? Forbes reports it is a measly $1, citing a banker familiar with the deal. Writes author Mike Ozanian:
Though the deal is not final and is subject to the approval of MLB, its terms underscore the desperation of Wilpon and Katz, whose team is swimming in debt, bleeding cash and losing fans. The Mets could post a net loss of $70 million this year, $20 million more than 2010.
Forbes reports Einhorn's option to up his stake to 60 percent is in three years, which is originally what ESPNNewYork.com reported. However, sources now tell me it may be as many as five years away.
UPDATE: The Mets issued this statement: “Through the entire sale process, there has been and continues to be widespread misinformation and sometimes completely baseless and unfounded speculation about the terms of the potential agreement.”