Sep 2, 2011, 9:15 AM EDT
With their $200 million cash infusion from David Einhorn scuttled, Fred Wilpon and Saul Katz are taking a different tack. Richard Sandomir and Ken Belson report that they’re looking into selling smaller stakes “to people willing to invest perhaps $20 million each.” Hurm.
Being a minority investor in a closely-held corporation is not great to begin with. You have no control, really. It’s the sort of thing that, as the Einhorn negotiations showed, would almost compel you to want to (a) have some mechanism to make it a REALLY great investment on its own terms, such as you getting most of your money back later; or (b) have some mechanism by which your minority share could be transformed into a controlling interest at some later date.
But now Wilpon and Katz are basically looking for vanity investors. People who want to be able to say “I own a piece of the Mets.” As the Times story notes, it’s often the case that “such investors simply want the perks of ownership, like access to suites and the team’s players. Most of these investors do not have ambitions of being majority owners.”
It may be easier to find those kinds of investors, but getting them together, making sure they pay — and continue to pay later when losses need to be covered — and then managing the suddenly-larger ownership group is probably something of a headache.
- Ray Rice is awful, but let’s not pretend baseball has a great record on domestic violence 56
- And That Happened: Sunday’s scores and highlights 49
- Mariners’ interest in Matt Kemp is “very real” 29
- Astros players upset over Mark Appel’s promotion to Double-A, bullpen session in Houston 43
- Four theories about the Hall of Fame voting changes 24
- Troy Tulowitzki is visiting a sports hernia surgeon 10
- Settling the Score: Saturday’s results 29
- Giants acquire Jake Peavy from Red Sox 55
- Expert’s Corner: How to troll fans of all 30 teams (201)
- Verducci: baseball should think about an “illegal defense” rule to combat shifts (165)
- Yankees acquire Chase Headley from Padres (108)
- Who is the next Face of Baseball? (97)
- David Ortiz passes Carl Yastrzemski on the all-time home run list — is he a Hall of Famer? (92)