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Baseball Primer Newsblog— The Best News Links from the Baseball Newsstand
Friday, August 28, 2009
Fred Wilpon, the owner of the New York Mets, will be forced to sell the baseball franchise as soon as 2010 after incurring heavy Bernie Madoff-related investment losses.
So says Erin Arvedlund, author of “Too Good to Be True,” a new book from publisher Portfolio that has gotten a big buzz in its first few weeks by detailing the evil deeds of the disgraced New York hedge fund manager. Madoff, who is serving a prison sentence, has become the poster child for Wall Street’s excessive corruption, greed and all-around sleaziness.
“You can quote me,” Arvedlund said of a possible sale of the Mets. “It’s a matter of when. It could be as soon as next year.”
I knew Madoff was going to cost the Wilpons an arm and a leg, but judging from the Mets DL, it was worse than that.
Mark S.
Posted: August 28, 2009 at 03:20 PM | 69 comment(s)
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1. Home Run Teal & Black Black Black Gone! Posted: August 28, 2009 at 03:47 PM (#3307612)Except with our luck, the only viable buyer would be the Dolans.
WE WANT CU-BAN!(clap! clap! clapclapclap!)
WE WANT CU-BAN!(clap! clap! clapclapclap!)
How hilarious/sad would that be? If that happens, Met fans can probably look forward to a surprise hire of Joe Morgan as President/GM.
There's a better chance Tony the Tiger and Yogi Bear get together to buy the Mets than this.
(note: Hank is in fact older, by 12 years)
Of course, it does leave plenty for me to buy a independent minor league franchise...
But, for that $120 million you could sit behind home plate at Yankee Stadium for, jeeze, 3 or 4 seasons, I imagine.
Cuban would be interesting...
Yeah, I know...but LordyLord would he have some fun in the NY market...
Yeah, it's all speculation. There's a lot of factors and possibilities to consider.
1) How is their real estate business doing, both now and in terms of its short-term prospects? If they have decent cash-flow there, it creates a lot less pressure on them when it comes to the Mets. That's true even if the appraised value of their properties has sunk significantly, which I'm sure it has. But if they are about to lose a lot of leases and are anticipating losing revenue (either because of departures or having to renegotiate new contracts at lower prices), that is a huge problem. The last thing they want to be forced to do is sell properties at bargain-basement prices right now . . . . so the Mets and/or SNY might be their best option if they have to sell something.
2) Would it be possible to bring in a minority investor to capitalize, rather than sell the team? A one-third share of the Mets and/or SNY would be worth a lot of money, and would presumably give them some breathing room. If their long-term outlook is rosy enough, but they simply have to get through the short-term debacle somehow, they might be willing to swallow their pride and return to the old arrangement (remember the old Wilpon/Doubleday days?) as a way not to lose the Mets entirely. Of course, it wouldn't be with Nelson Doubleday himself . . . .
3) How much external pressure are the Wilpons under? What are their bankers and possibly other creditors telling them? What is Fred Wilpon's health like? How would revenues be affected if, instead of selling, they simply cut payroll so they can increase profitability?
4) What would the team actually bring in the current climate? I mean, hey, I have a few hundred million lying around somewhere, but I'm not sure I can find it right away, and even if I could, that's not going to be enough to make the "happily ever after" the Wilpons are looking for here.
So I think it's quite plausible that the conditions are such that a sale could happen. But it's completely speculative.
You're not a friend, you're not a brother.
I don't want to see in the hotels or the casinos.
I don't want to know you or what you do.
When you come see our mother, I want to know 24 hours in advance, so I won't be here.
(Nothing happens to him while my mother is alive.)
Agree. But just because it's probably not going to happen doesn't mean we can't have some fun with it in the meantime.
So with that in mind, my money's on Donald Trump to take command.
DB
And when she dies Hal will sign David Wright and trade him to Philly.
You obviously didn't get the memo that fun in connection with the 2009 New York Mets has been outlawed. Violations of this edict will be reported to the Commissioner and leaked to the U.S. Attorney's Office.
I hereby make this solemn vow to all my BTF brothers and sisters:
If I win the MegaMillions tonight, I, RMc, will purchase the Metropolitan Baseball Club of New York.*
(*Assuming there's money left over after I buy a swimming pool of sharks with laser beams on their heads. Frickin' laser beams...!)
What a disaster that would be. I have grown to care not at all about the Knicks under their special brand of mismanagement, unprofessionalism, and chaos. If the Wilpons do sell, I can only hope that their one last gift to the fans of the team is to sell to an owner other than the Dolans.
To be fair, the Dolans are excellent, if idiosyncratic, businessmen. Larry Dolan (Charles's brother) has done a splendid job with the Indians. A Dolan purchase of the Mets would only be problematic if the Mets met the same fate as the Knicks: a plaything for black-sheep Jimmy Dolan to let him "learn management skills" and basically, pass the time.
Have you actually read the book? I know the author's prediction is probably overly bold. But her book on Madoff is good and features a lot of solid reporting. (Disclosure: The author is a friend of mine.) If one wants to wait until 2012 for a book on Madoff there may be that option, but for the crop of current books I think this one is excellent.
Why do you guys want Cuban so bad? Have you seen some of the dysfunction he had with Nelson? If Nelson hadn't brought in Nowitzki, the Mavericks would have been a nothing team during Cuban's reign. He's the most overrated owner in sports. You're better off with some non-descript billionaire who will let his baseball people run the ship.
I'll take that too. I just want an owner who's willing to spend at the levels of the Yankees and Red Sox.
Ah, Jimmy Dolan. The man who drove off Marv Friggin' Albert is not exactly the figure whom I would expect to satisfy Mets' fans desire to see the team do a better job than the Wilpons have done honoring the team's history.
But hey, the Dolans and Cablevision have had their knock-down, drag out fights with Fred Wilpon, too, so that makes me think they would do what they could to at least try to find an alternative buyer before turning in desperation there.
The Dolans won't be allowed to by the team, they were the high bidder for the Sawx and Selig wouldn't let them have it, no way no how. Look at the Dolans' role in the NHL's overall financial situation (mess)- there is no way a majority of MLB owners would let them join the "club".
What are you talking about? There's no mess - Gary Bettman has publicly stated that everything is wonderful in the NHL, and there's no reason at all to expect that half a dozen teams could go under over the next year. Surely you wouldn't call Gary Bettman a useless lying tool, would you?
Don't be so sure. If the Wilpons are really in big trouble, and threatening to bring a cornerstone, big market franchise like the Mets down with them, then MLB and the other owners might not be in a position to be picky about a buyer. Protecting a current member of the club -- one who has been awfully loyal to Seligula, by the way -- and assuring him a soft landing in his time of trouble may just be a higher priority. If Fred can assure The Brethren that he has looked high and low for a suitable buyer, and that the Dolans are the only ones with deep enough pockets (so that the sale price doesn't depress the value of their franchises, mind you), then they just might hold their noses and let 'em in.
Later, according to unnamed sources close to the GM, he refused to speak to Dial, but instead asked Assistant GM Adam Rubin to handle the situation.
I hope nobody suggests that the manager's intense use of HGH and nandrolone enhanced his ability to scream angrily and punch walls. There's simply no evidence to suggest that.
Or if you were particularly civic-minded, you could pay down about 40 minutes worth of national debt.
Do the Mets have enough money left to pay the doctor?
Sorry, no. It will be a death panel for Reyes.
You do realize the Mets' opening day payroll was $13M higher than that of the Red Sox, right? I know it's fun to hate on the Red Sox, because lord knows we have some obnoxious fans on board, but they are not "the other Yankees" or "Evil Empire II", at least when it comes to payroll. It's simply not true.
It's undeniable- the Wilpons, especially pre-Madoff, were not cheap. It makes things worse, really, contemplating how bad things can get if they do stop spending money.
Yeah, don't get me wrong, the Wilpons are far from my idea of great ownership.
The Blue Jays will let you know after the 2010 season.
Composition:
Wallace Matthews, Paul LoDuca, and Kazuo Matsui, with a special guest appearance by Jimmy Rollins
Yes, they have (and have had) the highest payroll in the NL, but a lot of that stems from either stupidass contracts (Castillo, Ollie, Alou) or just plain silly ones (Julio Franco, Marlon, Easley, Cora).
1) I've heard the book is excellent. Arvedlund is an excellent choice its author, since she looked into Madoff and questioned his returns almost ten years ago; it's not like she's a Janie-come-lately or anything.
2) I have heard that Wilpon is in a lot of trouble as well. It wouldn't surprise me at all if she's telling the truth (or at least making a well-educated guess).
1) Denies that the losses he and Sterling Equities suffered to Madoff were as high as $700M ... but refuses to disclose how high they were.
2) Denies that the team will be sold, because they are an "emotional asset" for him and the family.
3) Is backed up by DuPuy, who says essentially that the Mets' financial statements show that it is business as usual for the franchise. Of course, those statements show only the team's revenues and expenses, not the Wilpons' underlying financial situation.
As the article notes, because the team is privately held, nothing they say publicly can be verified. Only what happens this post-season will tell the tale.
If you say "oh no it's not $700M" and then refuse to give a number, the best bet is it's approx. $690M.
Wilpon: Absolutely not!
Reporter: Did you lose $699 million?
Wilpon: No comment!
When did the Dolans become the last rich people in America? Truly major sports franchises, like a New York baseball team, don't come on the market very often. If the Wilpons did put the Mets up for sale, there would be enough other bidders that neither the Wilpons nor MLB would not to settle for the Dolans. I also have to assume that the Wilpons would be loathe to sell to the Dolans because they hate them, because as far as I can tell, every single human being in the NY Metropolitan area either hates the Dolans, or don't know who they are.
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