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Baseball team needs help? Call Wall Street

May 27, 2011, 10:00 AM EDT

File photo of David Einhorn speaking at 6th Annual New York Value Investing Congress in New York City

In light of hedge fund manager David Einhorn buying into the Mets, The Wall Street Journal makes an observation this morning:

Einhorn is poised to join a growing number of sports team stakeholders who have come to this highly eccentric vocation bearing one basic skill: the ability to manage enormous sums of money. Over the past decade, hedge-fund managers and elite financiers—many of whom are from New York or who made their fortunes here—have emerged as the first people bankers call when they have a major sports franchise to dispose of.

I suppose courting owners whose skill is “manging enormous sums of money” is preferable to baseball’s old m.o. of courting owners whose calling card seems to be a striking inability to manage enormous sums of money. So hey — progress.

  1. sportsdrenched - May 27, 2011 at 10:17 AM

    Better than a used car salesman too.

  2. yankeesfanlen - May 27, 2011 at 11:09 AM

    I’ve seen this before, and it could work out. That’s why I hope the reports that he’s a “Great baseball guy” are true. That will make all the difference, otherwise the Metropolitans will just be viewed as a “recoverable asset”.
    Over ten years ago, a Wall Street whiz kid Eddie Lampert found he could leverage the funds to control Kmart after the frat-boy management had bankrupted it. So now it’s fun to own a retail store, let’s, in true Studebaker-Packard fashion, buy Sears too. Investors loved it too, look at all that value in prime real estate. Trouble is, distressed retail space in old malls and strip centers ain’t so hot anymore and Eddie’s retail experience didn’t even have running a 7-11 on his resume. So he wasted 10 years.
    Anyway, let’s hope Einhorn keeps his eye on the ball and doesn’t want to split his time between Flushing and Vegas.
    A good Mets team is also good for the city’s True Baseball Team.

    • Old Gator - May 27, 2011 at 1:23 PM

      The Mets are the true baseball time. The Borg is New York’s designatedhitterball team. They’re great at what they do, but it isn’t “baseball” anymore.

      • yankeesfanlen - May 27, 2011 at 1:29 PM

        Aw, cmon Gate, we won 20 the old fashioned way, wanted to do the next 20 with something new.
        BTW- Just received Liberty Street today. Will be perusing it through the weekend. Damn 3rd party amazon vendors- they had sent it to some guy in Houston who mailed it to me.

  3. APBA Guy - May 27, 2011 at 12:14 PM

    Yeah, it’s a complex phenomenon, making tons of money, because it is basically a talent like being able to hit live pitches really, really far. Very few can do it well and consistently. And after a while, a few of them begin to believe they can do anything very well. The Tampa Bay guys and the Boston owner really studied what they were getting into to try to figure out how to win with what they have. You can see that process being repeated with Henry and his purchase of Liverpool. He negotiated a great, distress sale price for the club and then took a long time deciding to make Dalglish the manager for the next few years.

    We don’t know if Einhorn has any control interest at the Mets, so for now, it’s speculation on any changes to methodology there. Hopefully they’ll give Alderson the time he needs to right the baseball ship.

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