Einhorn’s $200 million purchase of a 33 percent stake in the money-losing Mets franchise is structured as a loan—with the hedge-fund investor getting paid back in three years and having his stake reduced to about 16 percent.
JPMorgan Chase, which is owed about $500 million by the team, won’t approve such a deal unless its loans get serviced—repaid or restructured—prior to Einhorn.
In addition to objecting to the Einhorn deal, in the last few months the bank wrote a “tough” letter to Sterling telling it that the Mets had breached their loan in 13 different ways, said the source, who has seen the letter.
The bank did not put the team in default, but the letter puts it on notice so the bank could more easily pursue that course in the future, the source said. ...
“JPMorgan has been very difficult on several sports loans,” another source said. “They are being supremely cautious.”
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