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

[Benjamin Grimm]

No, you're not. The name Ray Finkle is not familiar to me.

[TransMonk]

Ceetar wrote: I haven't seen anything that denotes what percentage of ownership he is at. Does anyone know? Nope. I saw $200 million, and I saw 'valued at 1B' which would suggest 20%, but I don't think that's it either. Official press release says less than 49%.

Today Klap says "Einhorn is believed to have been awarded a 30 percent stake in the Mets..."

http://www.northjersey.com/sports/052711_Klapisch_Have_faith_Mets_fans_and_hope_for_the_future.html

[Edgy MD]

Today, Klap is believed to be a jerk.

[Guest metsguyinmichigan]

Edgy DC wrote: Today, Klap is believed to be a jerk.

He is relentless. That story was less of a piece on the new guy as much as it is another batch of gloom and doom, and you can almost hear Klap cackling and rubbing his hands in glee as he types.

Every base hit from Reyes and Beltran steels the owners desire to move them?

[Edgy MD]

metsguyinmichigan wrote: Edgy DC wrote: Today, Klap is believed to be a jerk. He is relentless. That story was less of a piece on the new guy as much as it is another batch of gloom and doom, and you can almost hear Klap cackling and rubbing his hands in glee as he types.

See, I think he believes what he writes. Even when the evidence selling his point contridicts the evidence selling another point.

Darryl Strawberry is the jerk who the Mets let undermine them and the golden goose the Mets let get away, depending on his angle at the target that day.

[Fman99]

New details emerge... anonymously... that Einhorn/Finkle has a path that could lead him to majority ownership as soon as 2014.

The short of it is that in three years Einhorn can go from a 33 percent stake up to 60 percent, and the Wilpons will have the opportunity to block that. If they are fiscally solvent enough to do so, that is.

[metirish]

Fman99 wrote: New details emerge... anonymously... that Einhorn/Finkle has a path that could lead him to majority ownership as soon as 2014. The short of it is that in three years Einhorn can go from a 33 percent stake up to 60 percent, and the Wilpons will have the opportunity to block that. If they are fiscally solvent enough to do so, that is.

I think the Wilpon's just went all in and are hoping for a good flop. Einhorn is betting they won't get that favorable flop.


game on

[Ceetar]

metirish wrote: Fman99 wrote: New details emerge... anonymously... that Einhorn/Finkle has a path that could lead him to majority ownership as soon as 2014. The short of it is that in three years Einhorn can go from a 33 percent stake up to 60 percent, and the Wilpons will have the opportunity to block that. If they are fiscally solvent enough to do so, that is. I think the Wilpon's just went all in and are hoping for a good flop. Einhorn is betting they won't get that favorable flop. game on

Probably how they got it to 33 instead of 49 maybe? You wonder what all the details are. It seems good for both parties actually, If the Wilpons have to sell it doesn't really matter with the percentage and who buys it and what not. But do they have to sell the othe 40% to Einhorn? Does the clause transfer say next year? Can they sell the other 67% and the new buyer pay Einhorn to keep him at 33%? I presume if they sell the rest, if Einhorn doesn't have first rights, which he might, the clause automatically activates?

[Guest John Cougar Lunchbucket]

Fman99 wrote: New details emerge... anonymously... that Einhorn/Finkle has a path that could lead him to majority ownership as soon as 2014. The short of it is that in three years Einhorn can go from a 33 percent stake up to 60 percent, and the Wilpons will have the opportunity to block that. If they are fiscally solvent enough to do so, that is.

Good luck with that one Fred & Saul.

[batmagadanleadoff]

"The best thing about Einhorn's 200 million dollar investment


... is that I'll get to keep my allowance".

[Guest LeiterWagnerFasterStrongr]

So, essentially for the cost of a technically-interest-free loan for three years, he's gotten himself his share.

I see why he passed on SNY now. Seems a smart bet.

[Guest Rockin' Doc]

Pretty shrewd deal by Einhorn. Not that it really matters much, but I wonder what Einhorn thinks of Reyes and Wright.

[Edgy MD]

I think it matters a lot.

[Guest John Cougar Lunchbucket]

Yeah, I think he's got a chance to pull a hero act here and lock the guy up. OTOH, maybe he wants to bleed his partners for a year or two to be sure they don't have the $$ left to prevent the majority steal.

[batmagadanleadoff]

It's a given that if Sterling gets hammered in the Picard lawsuit, the Wilpon/Katz group is a goner. The riveting issue is whether Wilpon/Katz can lose control of the Mets even with a favorable outcome in the Picard suit. If Sterling doesn't ultimately pay out more than their alleged fictitious profits from Madoff, are they then guaranteed to retain majority control of the Mets, or can they still lose the team? Any information or analysis on this front is what I find to be the most newsworthy. Fred's comments about Reyes and Crawford money and Wright's superstardom or lack thereof is just a side show.

[Gwreck]

I think it will come down to how much (if any) of their real estate holdings they are willing to liquidate to maintain control of the team.

If Sterling either A. prevails or B. negotiates a favorable settlement, there's no reason why they can't continue to be a highly successful real estate enterprise. But if -- in order to keep the Mets -- they have to pay $200 million to Einhorn (as reported) after paying a substantial amount to the trustee, that might not be possible. I think we'd need substantially more information about the Sterling Real Estate business to be able to make a truly informed guess.

[MFS62]

batmagadanleadoff wrote: It's a given that if Sterling gets hammered in the Picard lawsuit, the Wilpon/Katz group is a goner. The riveting issue is whether Wilpon/Katz can lose control of the Mets even with a favorable outcome in the Picard suit. If Sterling doesn't ultimately pay out more than their alleged fictitious profits from Madoff, are they then guaranteed to retain majority control of the Mets, or can they still lose the team? Any information or analysis on this front is what I find to be the most newsworthy. Fred's comments about Reyes and Crawford money and Wright's superstardom or lack thereof is just a side show.

I can't wait for this to go to trial, so there will be a jury we can tamper with.
Later

[Edgy MD]

Mets reportedly bringing in Ray Bartoszek (a previous bidder) as competition for Einhorn.

Bartoszek speaking earlier, as per Adam Rubin, as per the Times:

Ray Bartoszek, who said he was informed by the Mets he came in second to David Einhorn for a minority share of the Mets, spoke with the Times about the process. Bartoszek said a counteroffer from the Mets to his original proposal did call for him to get a small share of SportsNet New York and also have a path to majority ownership of the team. As for what he has read of Einhorn's winning bid -- which contains an ability to increase his percentage to a majority share unless Fred Wilpon and family return his original investment and allow Einhorn to keep one-sixth of the team -- Bartoszek said: "Einhorn is a very successful guy and it seems to me that he must be smarter than all the rest of us because he figured out how to basically short this team as he�s shorted a lot of stocks in the past. I wouldn�t bet against him. It�s just that I feel like it�s awkward, a trader taking on a position where he is rooting for the team to fail? I don�t like that. I would not do that deal because I would not feel right about having that attitude every day I went to work.� In essence, Einhorn benefits in the near future if the Wilpons' financial instability prevents them from blocking his option to up his stake.

http://www.nytimes.com/2011/06/17/sports/baseball/a-bidder-sheds-light-on-mets-process.html?_r=2&ref=baseball

[Guest John Cougar Lunchbucket]

Well that's interesting again.

[Edgy MD]

My Barteszource: http://blogs.forbes.com/mikeozanian/2011/07/20/bartoszek-back-in-the-lineup-as-possible-mets-investor/

[Edgy MD]

Adam Rubin: "Mets will have a statement shortly about status of ownership negotiations with David Einhorn amidst reports other bidders now back involved."

[Guest LeiterWagnerFasterStrongr]

That statement: we're still going steady with Einhorn.

Of course, the negotiating leverage may have changed a bit in the last few days:

Irving Picard, after running into howls of protest from the banks and other firms he claimed should have known about Madoff's scam -- and therefore are liable for damages on top of repaying phony profits, told a federal judge overseeing a protest suit filed by one of the banks, UBS, this week that he will drop the damages claim. The decision marks a significant setback for Picard and potentially Madoff victims. By being forced to back away from his damages claim, Picard might be blocked from pursuing tens of billions of dollars in assets that would ultimately be distributed to Madoff victims... ...Picard made the decision to retreat from his damages claims, sources said, after he was told his aggressive push to grab back billions from companies might not hold water in bankruptcy court. "Picard clearly is beating a strategic retreat," said Douglas Furth, a partner at Golenbock Eiseman, who is not involved with the case.

From $1 billion-plus sought to... ?

[Edgy MD]

"Oh, Irving, that settlement offer you rejected.... it's off the table."

The machinations of rich men. I wouldn't have the stomache for it.

[TransMonk]

LeiterWagnerFasterStrongr wrote: From $1 billion-plus sought to... ?

I read somewhere (of course, can't find it now) that it is down to a measley $300 million.

A couple of minority owners and it will be back to business as usual.

[HahnSolo]

Has anyone checked on batmags?

[Frayed Knot]

TransMonk wrote: LeiterWagnerFasterStrongr wrote: From $1 billion-plus sought to... ? I read somewhere (of course, can't find it now) that it is down to a measley $300 million.

IOW, Essentially money thought to have been gained upon withdrawal as opposed to said money plus penalties.

[Guest John Cougar Lunchbucket]

Anyone else getting a whiff of douchebaggery around Davey Kingman Jr. here?

[Edgy MD]

Betting on the rich and powerful to stay so is always a safe bet.

[Guest LeiterWagnerFasterStrongr]

HahnSolo wrote: Has anyone checked on batmags?

Really. I feel like we should confiscate his sharp objects.

[MFS62]

Until the case is formally heard in the new venue, I'm not sure if the amount they are going for is going to be any less.

Later