Times wires
Saturday, May 28, 2011
David Einhorn, the hedge fund titan who is in negotiations to buy a $200 million stake in the Mets, could own a majority of the team in three years, the New York Times reported Saturday.
Einhorn is expected to receive a one-third share of the Mets in return for his investment but could gain much more. He will have the option in three years of raising his stake to 60 percent, effectively ending more than three decades of control of the team by the Wilpon family.
Fred Wilpon, the principal owner, could block a move to take over his team by repaying Einhorn the $200 million he had invested. But Einhorn would then retain his one-third share of the team, essentially at no net cost, the Times said.
Steve Greenberg, the investment banker hired by the Wilpons to sell a minority stake in the Mets, declined to comment. Rob Manfred, executive vice president of Major League Baseball, also declined to discuss the deal. A spokesman for Einhorn said he had no comment. In a statement, the Mets said their exclusive negotiating agreement with Einhorn was "strictly confidential" and declined to discuss it further.
It is unclear what Einhorn would have to pay to increase his stake in the team to 60 percent in three years. Customarily, an auditor would be hired to revalue the franchise to determine the basis for negotiations over a price.
The deal being discussed between Einhorn and the Mets does not include a stake in SNY, the team's profitable cable television network. Einhorn said Thursday he was not interested in the television business, unlike many other bidders for the team.
The outline of the proposed deal was first reported by ESPNNewYork.com.
Though the deal is not final and is subject to the approval of Major League Baseball, its terms underscore the vulnerability of the Wilpons, whose team is swimming in debt, bleeding cash and losing fans. Wilpon said the team could lose about $70 million this year, $20 million more than last year.
UMP HURT: Home plate umpire Mark Wegner was helped off the field after tearing the calf muscle in his right leg with two outs in the bottom of the eighth of the game between the Giants and Brewers in Milwaukee.
DODGERS SAGA: Dodgers owner Frank McCourt has secured the funds necessary to make the monthly payroll due Tuesday, the Los Angeles Times reported. If McCourt fails to make the next payroll, due June 15, commissioner Bud Selig could take over the team and put it up for sale, according to the newspaper.
ASTROS: LHP Wandy Rodriguez went on the 15-day disabled list with fluid in his left elbow joint. RHP Jordan Lyles, one of the team's top prospects, was called up from Triple-A Oklahoma City and scheduled to make his major-league debut Tuesday. … C Humberto Quintero went on the 15-day disabled list with a sprained right ankle a day after a collision at home plate.
BREWERS: RF Corey Hart was pulled from the starting lineup against the Giants because of an illness.
NATIONALS: RHP Collin Balester was called up from Triple-A Syracuse to take the roster of spot of LHP Tom Gorzelanny, who went on the 15-day disabled list Friday with an inflamed left elbow.
PIRATES: LH reliever Joe Beimel went on the 15-day disabled list with left elbow inflammation. LHP Daniel Moskos was recalled from Triple-A Indianapolis. … 3B Steve Pearce left the game against the Cubs with soreness in his right calf.
REDS: LHP Jeremy Horst was called up from Triple-A Louisville. RHP Homer Bailey went on the disabled list with a sprained right shoulder, retroactive to Friday.
TWINS: RH reliever Joe Nathan went on the 15-day disabled list with tenderness in his surgically repaired right elbow. Nathan had ligament replacement surgery in March 2010.