Big News! (update: Mets Minority Stake For Sale)

[Frayed Knot]

Benjamin Grimm wrote: Presuction?

Well you don't just want to go into lipo surgery unprepared do you?

[batmagadanleadoff]

The trustee already has testimony and documented evidence that some of the younger Katz's and Stamos were deeply suspicious of Madoff. Under the NY Partnership Law, that knowledge can be imputed to the other partners -- e.g., Fred Wilpon and Saul Katz.

I've been working my way through the massive complaint a little at a time, and I'm beginning to believe that Sterling had to have known that Madoff was running a scam.

[G-Fafif]

Newsday's Jim Baumbach tracks down Nelson Doubleday. No, he's not enjoying this. No, he doesn't want back in.

The Wilpons are looking for someone with deep pockets to partner with them in owning the Mets. So, Nelson Doubleday, what do you think? "No," he said by phone Monday, "I've had my turn at that game." It's been almost nine years since Fred Wilpon bought out Doubleday's 50-percent share of the Mets, ending a partnership that began in 1980. Although their 22-year marriage was usually described as anything but amicable, Doubleday has found no joy in reading all these negative stories about the Wilpons - and the Mets - in the newspapers. "I hate to see the franchise get kicked around like that," he said. "And I'm sorry to see them getting kicked around." Speaking from his home on the East Coast of Florida, Doubleday, 77, stressed that he doesn't know all that much about the Wilpons' financial state or the $1-billion figure that the special trustee in the Bernard Madoff fraud case is seeking from them in a lawsuit. "All I know is what I read," he said. He's certainly not happy about what he's been reading, not to mention the negative effect this news has been having on the Mets' reputation. He said he had just spoken with former Mets GM Frank Cashen the other day about everything that's been going on. "Yeah, I hate to see this trouble for them," he said of the Mets, "because I enjoyed my time with them." A part of the Mets' ownership group since 1980, Doubleday spent his final 16 years with the Mets as an equal partner with Fred Wilpon until he was bought out in 2002. Asked about their well-documented differences, Doubleday said it's best to describe their relationship as "good business partners." "We got along in that and that was fine," Doubleday said. "I may not have done things the way they do it and they might not have done things the way I did them, but we got along." Given the staggering number of accounts with Madoff that had ties to the Mets, it was noteworthy that Doubleday was spared. He said he used different "investment counseling" than the Wilpons did. Doubleday said he spends a lot of his time these days at his Florida home, which is a few towns south of the Mets' spring training complex in Port St. Lucie. Summers are spent on Nantucket, he added, with a few visits to Long Island every now and then. Doubleday hasn't been to a game at Citi Field yet, but he expressed interest in visiting the Mets' new home someday. "If I can," he said, "I will." But as for investing any more time or money into the team, those days are long gone. "I see them every now and again. Our paths cross," Doubleday said of the Wilpons. "But not as far as baseball is concerned. It's none of my business."

[metirish]

Make of this what you will


http://www.metsfansforever.com/mets_fans_forever/2011/02/martin-luther-king-iii-investor-group-to-purchase-mets.html

[Guest John Cougar Lunchbucket]

metirish wrote: Make of this what you will http://www.metsfansforever.com/mets_fans_forever/2011/02/martin-luther-king-iii-investor-group-to-purchase-mets.html

That's the blog that asked to interview me one time then sent me a IM calling me a bitch. I'm sure the info is ironclad.

[metirish]

John Cougar Lunchbucket wrote: Make of this what you will http://www.metsfansforever.com/mets_fans_forever/2011/02/martin-luther-king-iii-investor-group-to-purchase-mets.html That's the blog that asked to interview me one time then sent me a IM calling me a bitch. I'm sure the info is ironclad.

Sure isn't that a fine load of bitches he has buying the Mets in the morning?

[Willets Point]

metirish wrote: Make of this what you will http://www.metsfansforever.com/mets_fans_forever/2011/02/martin-luther-king-iii-investor-group-to-purchase-mets.html

Dolan AND Cuban? Shit!

[metirish]

Willets Point wrote: Make of this what you will http://www.metsfansforever.com/mets_fans_forever/2011/02/martin-luther-king-iii-investor-group-to-purchase-mets.html Dolan AND Cuban? Shit!

MLK will keep the peace. Sorry if I offened anyone with the MLK remark.

[Benjamin Grimm]

John Cougar Lunchbucket wrote: That's the blog that asked to interview me one time then sent me a IM calling me a bitch. I'm sure the info is ironclad.

Care to tell us a little more about this?

[Frayed Knot]

"An investor group led by Martin Luther King III and including Ed Kranepool, Charles Dolan, Mark Cuban, Peter Kalikow and others are making an offer, as early as tomorrow, to purchase 100% of the Mets and SNY TV. "

This strikes me as an awfully quick time-frame to get such a diverse group and what must be a huge wad of money all together.
There's also that minor inconvenience of the current owners not wanting to sell.

[Edgy MD]

Still, to play with it for a bit, who would you frame as senior partner in that gambit? Unless a ton of parties are lining up to lend MLK III money, it has to be Cuban over Dolan, right?

[Guest John Cougar Lunchbucket]

Benjamin Grimm wrote: That's the blog that asked to interview me one time then sent me a IM calling me a bitch. I'm sure the info is ironclad. Care to tell us a little more about this?

There isn't much more than that! Looking back now, he wrote to me initially with a lot of questions about how to get a book published. He wanted to know if should write his book about the top 75 Mets then get a publisher or the other way around.

Then a few months later:

Hi this is XXXXX form MetsFansForever.com I was wondering if you could put my blog on your links bar. That would be great. Thanks!

sure thing will, woking on it now. JCL

Also I was wondering if I can interview you by e-mail about your site mbtn.net. Thanks again, XXX

Sure, I'd be happy to, anytime. JCL

Thanks, I'll send you the questions in the next couple of days.

Two months later...

Hey JCL, Sorry I haven't sent you the questions. I've had family problems so the Mets took a back seat. I promise I'll get them to you by Sunday night. Thanks, XXX XXXX

Then, 1 week later, via gmail IM:

XXXX: hey answer me bitch

JCL: Sorry, did I miss a message?

the end

[Frayed Knot]

Edgy DC wrote: Still, to play with it for a bit, who would you frame as senior partner in that gambit? Unless a ton of parties are lining up to lend MLK III money, it has to be Cuban over Dolan, right?

Cuban & Dolan can cut cards to determine which one Selig wants in less.

[Edgy MD]

So, I take it that none of the major media outlets have followed up on this scoop?

Somebody needs to turn in his blogger's license.

[Valadius]

I'm sorry, it sounds way too much like something someone calling Francesa would cook up in their head.

Cuban would never, ever be a minority partner in anything. And he would never get in bed with the Dolans. I call bullshit.

[G-Fafif]

John Cougar Lunchbucket wrote: John Cougar Lunchbucket wrote: That's the blog that asked to interview me one time then sent me a IM calling me a bitch. I'm sure the info is ironclad. Care to tell us a little more about this? There isn't much more than that! Looking back now, he wrote to me initially with a lot of questions about how to get a book published. He wanted to know if should write his book about the top 75 Mets then get a publisher or the other way around. Then a few months later: Hi this is XXXXX form MetsFansForever.com I was wondering if you could put my blog on your links bar. That would be great. Thanks! sure thing will, woking on it now. JCL Also I was wondering if I can interview you by e-mail about your site mbtn.net. Thanks again, XXX Sure, I'd be happy to, anytime. JCL Thanks, I'll send you the questions in the next couple of days. Two months later... Hey JCL, Sorry I haven't sent you the questions. I've had family problems so the Mets took a back seat. I promise I'll get them to you by Sunday night. Thanks, XXX XXXX Then, 1 week later, via gmail IM: XXXX: hey answer me bitch JCL: Sorry, did I miss a message? the end

I'm a little disappointed that "answer me bitch" isn't your signature.

[Edgy MD]

Valadius wrote: I'm sorry, it sounds way too much like something someone calling Francesa would cook up in their head. Cuban would never, ever be a minority partner in anything. And he would never get in bed with the Dolans. I call bullshit.

Well, get in line. On the other hand, like Marshall Crenshaw said, something's gonna happen.

[duan]

John Cougar Lunchbucket wrote: John Cougar Lunchbucket wrote: That's the blog that asked to interview me one time then sent me a IM calling me a bitch. I'm sure the info is ironclad. Care to tell us a little more about this? There isn't much more than that! Looking back now, he wrote to me initially with a lot of questions about how to get a book published. He wanted to know if should write his book about the top 75 Mets then get a publisher or the other way around. Then a few months later: Hi this is XXXXX form MetsFansForever.com I was wondering if you could put my blog on your links bar. That would be great. Thanks! sure thing will, woking on it now. JCL Also I was wondering if I can interview you by e-mail about your site mbtn.net. Thanks again, XXX Sure, I'd be happy to, anytime. JCL Thanks, I'll send you the questions in the next couple of days. Two months later... Hey JCL, Sorry I haven't sent you the questions. I've had family problems so the Mets took a back seat. I promise I'll get them to you by Sunday night. Thanks, XXX XXXX Then, 1 week later, via gmail IM: XXXX: hey answer me bitch JCL: Sorry, did I miss a message? the end

Me thinks that the proximity of your little green gmail chat thing to that of the 'personal problems' would be the answer.

[HahnSolo]

Just to throw some more fat on the fire...does anyone think that maybe Saul knew something about Madoff, but that Fred and Jeff were left in the dark? Or is that too ridiculous to ponder?

[Edgy MD]

No, I think that possibility has been implied here, although not necessarily endorsed.

[Ceetar]

HahnSolo wrote: Just to throw some more fat on the fire...does anyone think that maybe Saul knew something about Madoff, but that Fred and Jeff were left in the dark? Or is that too ridiculous to ponder?

I don't think it's wrong to suspect different guys had different levels of skepticism, but they were both after the same thing so if he was seriously concerned he probably would've spoken up.

I think Katz is just a little more shrouded in mystery so we like to assign him all sorts of nefarious deeds.

hey, i wonder if he's Mr. Met?

[Benjamin Grimm]

I'm beginning to conflate Saul Katz and Dick Cheney.

[MFS62]

Edgy DC wrote: Valadius wrote: I'm sorry, it sounds way too much like something someone calling Francesa would cook up in their head. Cuban would never, ever be a minority partner in anything. And he would never get in bed with the Dolans. I call bullshit. Well, get in line. On the other hand, like Marshall Crenshaw said, something's gonna happen.

I hope that Dolan isn't part of that deal.
I don't want to see Isiah Thomas as GM of the Mets.

Later

[Edgy MD]

The Times is doing a better job here than previous I think, focusing on the less salacious details about the other vulnerabliity the Wilpons/Katzes face --- the overextension they've found themselves in, trying to keep flush after the Madoff revenue streams dried up.

They really built at the wrong time, didn't they? I breathed a sigh of relief when I found out they weren't wiped out by Madoff, but it took a while to realize how dependent they were on the phony revenue stream that he gave them to continue --- that in their debt-intensive world, loss of future revenues isn't so meaningfully different than loss of actual assets.

I don't think they're going to end up at the curb like Lenny Dykstra, but goodness, the thought crossed my mind.

Banks Could Have Key Role in Mets Suit By PETER LATTMAN and RICHARD SANDOMIR Published: February 8, 2011 Bernard L. Madoff�s arrest on Dec. 11, 2008, shook the pillars of Fred Wilpon�s world. Gone was $500 million that he and his family thought was in their Madoff investment accounts. On top of that, Wilpon�s remaining empire had at least a half-billion dollars in debt with no easy way to deal with it, according to court papers filed last week. There was, the records say, �very little actual cash on hand.� Sterling Equities, the family company that owns the Mets, was scrambling to survive. In the end, eight banks, including Bank of America and JP Morgan Chase, came to Wilpon�s rescue. Together, they engineered what the court papers say was a �complete and comprehensive� restructuring of 40 loans totaling $500 million owed by Sterling�s partners and other parts of the empire. In the refinancing, the family trusts of Wilpon and his brother-in-law, Saul Katz, added $100 million in debt. The overhaul worked, keeping Sterling afloat when global finances were in doubt and easy credit was nonexistent. And there is little doubt Wilpon�s public record as a careful businessman and respected team owner explained some of the willingness of the banks. �Here you have the Wilpons with a reputation for being smart, good businesspeople,� said Shai Waisman, a bankruptcy lawyer at Weil, Gotshal & Manges in Manhattan, �and if you�re a bank, you probably think they�ll be able to weather this storm and turn things around.� A lawsuit brought against Wilpon and his associates at Sterling by the trustee for Madoff�s victims � one that accuses them of having willfully ignored warnings that Madoff might have been a fraud � has offered Wilpon�s banks an unflattering portrait of the man they helped rescue. The trustee, Irving H. Picard, has charged that Wilpon and others at Sterling, despite having reason to be suspicious of Madoff, nonetheless used their Madoff accounts as collateral for bank loans, and that they used loans from banks to open up additional accounts with Madoff, confident that the steady money earned with Madoff would outperform the interest rates on their loans. A lawyer for Picard, David Sheehan, has said that when Wilpon needed cash but wanted to avoid formally going to the banks for more loans, he simply had Madoff lend him millions, all under the guise of ostensible investments in Wilpon�s real estate holdings and venture capital deals. Picard is seeking $1 billion from Wilpon and his partners to compensate those who he argues were true victims of Madoff. Wilpon�s banks have chosen not to answer questions about the lawsuit or its portrayal of Wilpon and his partners. And Wilpon�s lawyers contend that Picard �did not uncover one shred of evidence� to disprove Wilpon and his partners were anything more than victims who trusted Madoff. But those banks, which over the last two years have saved and supported Wilpon, could be critical players as Wilpon contends with Picard�s lawsuit and the prospect of needed hundreds of millions in cash to settle the case, according to lawyers and other banking experts. Those lawyers and experts suggested Wilpon�s banks could contemplate a number of options: they could call in their loans, perhaps forcing Wilpon to sell all or parts of his empire; or they could choose to assist him, helping him find a way to survive even a giant settlement. �Generally speaking, banks don�t act rashly in these sorts of situations,� said Anthony W. Clark, a partner at Skadden, Arps, Slate, Meagher & Flom who specializes in corporate restructurings. �They�re usually cautious and will watch to see what happens. They don�t want to precipitate the thing they are most concerned about, which is diminishing the value of the assets that serve as their collateral.� Wilpon�s empire is heavy with debt. With his real estate dealings, that is hardly uncommon. He and his partners routinely put up a small percentage of equity in their real estate funds and borrowed two to three times that when making acquisitions. There is also serious debt on his team and the new stadium he helped build in Queens. Indeed, with the Madoff case looming, Wilpon�s company�s need for cash was such that in taking out a $450 million loan on the SNY network last year, he and his partners, Time Warner Cable and Comcast, got about $240 million in cash, two-thirds of which went to Sterling. And in a $375 million financing of the Mets last year, Wilpon reportedly received $75 million in cash. It is not clear whether that cash was spent or salted away. And Wilpon has, within the last two weeks, put up for sale 25 percent of the team � a previously unthinkable option � to raise more money. As the banks look at the loans Wilpon and his partners have, their options depend on the specific language in the agreements, said Sandra E. Mayerson, a lawyer at Squire Sanders who specializes in restructuring and insolvency. The banks may well have forced Wilpon, in these most recent refinancings, to add more collateral or restricted the investments he could make. �I�m sure the Wilpon side will fight tooth and nail to keep their businesses viable,� Mayerson said. �It doesn�t help anyone, including Picard, to have those businesses fail.� Picard�s lawsuit described a web of dubious banking that fueled growth at Sterling. When Wilpon needed a loan to buy out his cable television deal to start SNY, he pledged at least one Madoff account as collateral. The Sterling partners opened 65 accounts solely to invest with Madoff and then often to use as collateral to borrow still more to invest in the accounts. Bank of America �was influenced by both the large purported balances� and �consistent returns� generated by the Sterling�s Madoff accounts when Sterling sought a $75 million loan. According to Picard, the loan supplied Sterling with half of what it needed to secure its stake in its latest real estate fund, which entitled it to 90 percent of the fund�s management fees. According to Picard, Wilpon and his partners used the Madoff accounts to prove their net worth and creditworthiness to raise capital �that might not have been otherwise available.� Some experts say that Picard�s accusations have not been proved in court. �Don�t forget that it�s only a legal claim that the trustee has against them,� said Deirdre Martini, a managing director at Wells Fargo Capital Finance. Still, Bradley Simon, a former federal prosecutor who is a defense lawyer at Simon & Partners, said that banks should be �nervous, if not terrified� if Picard successfully forces Wilpon and Katz to sell the Mets, SNY and real estate to come up with $1 billion. He added that banks should be combing their loan refinancing documents for misleading statements related to Madoff. �I don�t think they understood what Picard knows,� Simon said.

[Benjamin Grimm]

I really think that Bud Selig is going to get to work to try to coordinate a full sale of the team.

The only question in my mind is when this will happen (if it hasn't already started, which I sort of doubt) and how successful it will be, if the Wilpons decide to be stubborn about hanging in there, as they very well might.

[MFS62]

The first hint of a sale will be when they re-name the stadium "Debits Field".

Later

[Gwreck]

The name on the stadium is actually the least likely thing to change. With all of their cash flow problems, they are not going to turn away the millions of dollars they get each year for the naming rights.

[MFS62]

Just curious.
With Ed Kranepool's name being mentioned in stories about potential new ownership offers, has the CPF been experiencing an increase in hits to the site?
Any way to check that out?

Later

[stevejrogers]

I doubt it would. Unless there are more people who hear the name Kranepool and want to put a C instead of the K.

[Lefty Specialist]

Edgy DC wrote: Valadius wrote: I'm sorry, it sounds way too much like something someone calling Francesa would cook up in their head. Cuban would never, ever be a minority partner in anything. And he would never get in bed with the Dolans. I call bullshit. Well, get in line. On the other hand, like Marshall Crenshaw said, something's gonna happen.

The lyrics to Some Day, Some Way are strangely appropriate.


I can't stand to see you sad
I can't bear to hear you cry
If you can't tell me what you need
All I can do is wonder why
Someday, someway aww
Someday, someway, yeah now
Someday, someway
Maybe I'll understand you
After all you've done for me
All I really want to do
Is take the love you brought my way
And give it all right back to you
Someday, someway
Someday, someway yeah yeah
Someday, someway
Maybe you'll understand me
You've taken everything from me
I've taken everything from you
I'll love you for my whole life through
Now after all you've done for me
All I really want to do
Is take the love you brought my way
And give it all right back to you
Someday, someway aww
Someday, someway, yeah now
Someday, someway Maybe
you'll understand me
You've taken everything from me
I've taken everything from you
I'll love you for my whole life through
I can't stand to see you sad
I can't bear to hear you cry
If you can't tell me what you need
All I can do is wonder why
Someday, someway aww
Someday, someway, yeah yeah
Someday, someway
Maybe I'll understand you
Someday, someway aww
Someday, someway, yeah yeah
Someday, someway
Maybe you'll understand me
Someday, someway oh!
Someday, someway, yeah now
Someday, someway
Maybe I'll understand you