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The Mets deal with David Einhorn continues to be delayed

Jul 25, 2011, 10:00 AM EDT

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

Last week the Daily News reported that the Mets deal with investor David Einhorn was being slowed up because the Mets, no longer shackled by the exclusive negotiation window with Einhorn, were talking to others who may offer them a better deal. Today the New York Post tells a somewhat different story: the Einhorn deal isn’t sealed yet because another Mets lender — J.P. Morgan Chase — is blocking it.

Why?  Because Einhorn’s deal, though thought of as an investment in the team, is functionally like a loan. As in, he’s offering the Mets money now, is taking  a stake of the team as, essentially, collateral, and will be repaid in three years, at which time his stake is reduced to 16 percent. That 16 percent can be thought of as interest.

At least that’s how J.P. Morgan sees it. And, as someone who is owed way more money by the Mets than Einhorn will be, and as someone who lent money to the Mets earlier, they want to be paid back before Einhorn is.

So, the Mets are still negotiating with everyone and are likely still shopping around for other investment offers.  But it’s not necessarily out of a pure position of leverage over Einhorn. It’s partially because they can’t yet get the deal done with him.

  1. Chris Fiorentino - Jul 25, 2011 at 10:04 AM

    Why doesn’t MLB learn from the Dodgers fiasco and force the Madoffs to sell the entire team outright? This has nothing but trouble written all over it.

    • yankeesfanlen - Jul 25, 2011 at 10:10 AM

      Wilpons kinda own the Metropolitans, easy mistake to make.

      • Chris Fiorentino - Jul 25, 2011 at 10:11 AM

        LOL…yeah that was definitely a Freudian Slip there.

  2. yankeesfanlen - Jul 25, 2011 at 10:08 AM

    Sounds like the Wilpons need a firm more like Biaylstock & Bloom more than J.P. Morgan & Einhorn. Would be more comfortable that way

  3. Kevin S. - Jul 25, 2011 at 11:24 AM

    Not seeing this as an issue at all. JP Morgan Chase gets paid back. If the Wilpons then can’t cut the check to Einhorn, he buys that 60% stake and owns the team.

    • cur68 - Jul 25, 2011 at 11:51 AM

      Fred probably wants to avoid that scenario, hence the shopping for a new suitor. With any luck Finkle, ooops, I mean Einhorn, gets the deal. He’s gotta be better than Fred and his kid.

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