Comments on: David Einhorn is getting one heck of a deal

By: mornelithe

mornelithe — Sat, 28 May 2011 20:18:45 +0000

Hi-5!

By: jwbiii

jwbiii — Sat, 28 May 2011 17:48:13 +0000

As for the TV rights, 67% of SNY is owned by the Mets, not by the Wilpons as a separate entity. Time Warner and NBC Universal are the minority owners. Their ownership agreement makes it difficult for the Mets to sell their share, as the minority owners have the right to match offers. NBC Universal is owned by Comcast and GE and they may be willing to do that. However, if Einhorn winds up with the Mets, he’ll also get the controlling interest in SNY.

By: jwbiii

jwbiii — Sat, 28 May 2011 17:12:53 +0000

$600M Seems about right. The last Forbes report had the Mets at $850M with $450M debt. The last to teams to be sold, the Cubs and the Rangers, went for 20-25% more than their most recent Forbes valuations. This moves the Mets to a little over $1B, less the $450M debt, right at about $600M.

By: spudchukar

spudchukar — Sat, 28 May 2011 16:47:41 +0000

Even 600 mil seems cheap for the Mets. I wonder if there are any clauses in the deal that open up to Einhorn TV rights?

By: Old Gator

Old Gator — Sat, 28 May 2011 16:43:42 +0000

No, but Einhorn’s not inbred. Look at the little Wilpon….you can see the telomeres fraying even now….

By: moralitydecay

moralitydecay — Sat, 28 May 2011 15:32:41 +0000

Financial institutions usually don’t want you to refinance at a lower interest rate if you make the payments. As interest rates have been declining for a while and Einhorn has supplied liquidity I don’t see why they would push for a refinancing of the team, they probably lose in the long-run.

By: cur68

cur68 — Sat, 28 May 2011 15:30:20 +0000

This could be the best thing for the Mets. He’s got 3 years to figure out how to run a club and get a management team in place. This guy is sharp, sharper than any Wilpon, so here’s hoping he makes something of that club.

By: cur68

cur68 — Sat, 28 May 2011 15:28:15 +0000

Laces out Dan…

By: mornelithe

mornelithe — Sat, 28 May 2011 15:16:27 +0000

Einhorn is Finkle? Einhorn’s a man???!??!?

By: yankeesfanlen

yankeesfanlen — Sat, 28 May 2011 14:40:35 +0000

Yes, the loans were to the team, however , they’re hundreds of millions that obviously the Wilpons can’t pay, and Einhorn could, for further control of the team, if it came to that.

By: paperlions

paperlions — Sat, 28 May 2011 14:34:04 +0000

Is it true that the loans are to the Wilpons and not to the team? Meaning that all of the debt is still the Wilpons? It would seem that the loans would have to be specifically to the team, otherwise the sale would have to be approved by the banks, who likely would require refinancing because the Wilpons no longer owned the entire asset that serves as collateral for their loan.

By: D.J. Short

D.J. Short — Sat, 28 May 2011 14:33:30 +0000

Right. I have a feeling it won’t take three years.

By: paperlions

paperlions — Sat, 28 May 2011 14:32:04 +0000

A 3-year $200MM loan without interest in exchange for 33% of the team or the right to own 60%. Ho. Lee. Crap.

I have a hard time believing that there were any remaining viable suitors if that is the deal Einhorn got….because how in the world could the Wilpons do no better than that?

I would be surprised though if it actually happens this way. Does anyone else think the Wilpons can survive 3 more years running the team? I bet they sell a controlling interest (or all of it) to Einhorn before then.

By: yankeesfanlen

yankeesfanlen — Sat, 28 May 2011 14:15:33 +0000

As of the day he turns the $200M check to the Wilpons, Einhorn is in the drivers seat. He has all the equity of an illiquid asset. The banks (Wilpon’s loans) own the rest. The banks are like Goodfellas characters- “Pay me the Money”, and have no interest in running a team. Einhorn does, and will, the Wilpon’s will cry that they own 67% and Einhorn will say that’s the banks money, I have $200M in this team, you have horsefeathers.
Nive poker face, Einhorn.

By: irishjackmp

irishjackmp — Sat, 28 May 2011 13:46:53 +0000

Wow. What a can’t lose deal if you are Einhorn.

Nice to see Fred Wilpon isn’t any brighter than when he thought it was a good idea to invest his money with Bernie Madoff.