Jul 25, 2011, 10:00 AM EDT
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.