Mets Cut Off Talks with David Einhorn
By Editorial Staff
In an unexpected turn of events, the New York Mets have cut off negotiations with David Einhorn; the hedge-fund manager who had been interested in buying a minority share of the Metropolitans.
As a result of their involvement in the Bernie Madoff fiasco and increasing debt, the Mets have recently fallen on hard times financially. New York had been in search of investors to help shoulder some of the burden and, in May, the Mets and Einhorn appeared to come to an agreement. Einhorn would pay $200 million in return for a 33% stake in the organization.
But it wasn’t meant to be, as the Mets have now decided to end negotiations.
Einhorn shared with reporters that he was approached by the Mets late last week with some changes to their original agreement. While he couldn’t legally get into all of the details, Einhorn did mention that one of the larger issues surrounded his future as possible majority owner of the club.
In the agreement that was reached in May, a provision was included that called for Einhorn to be preapproved as majority owner by Major League Baseball. This would allow Einhorn to more easily move into the role at some point in the future.
Months after coming to this agreement, the Mets apparently rethought this request and tried to have it removed. They’ve now decided to eliminate Einhorn from the picture altogether, instead opting to “explore other options”.
Instead of bringing in one large investor and thus surrendering a large portion of the team, New York may pursue many small investors so as not to bring majority ownership into the equation.
Whatever they decide one thing is for sure, New York needs money. It was announced earlier this year by Mets’ ownership that the club could lose as much as $70 million this year. New York is also facing a $1 billion lawsuit that’s been filed against them by representatives of investors involved in the Madoff Ponzi scheme.
For more on the Mets, be sure to check out Rising Apple.