Baseball for the Thinking Fan

Login | Register | Feedback

btf_logo

News

All News | Prime News

Old-School Newsstand


Contributors

Jim Furtado
Founder & Publisher

Syndicate

Finance Newsbeat

Tuesday, April 28, 2020

A-Rod, J-Lo and the Mets Ownership Possibilities

At the end of last year, it looked like the Wilpon family might sell the New York Mets to Steven Cohen for around $2.5 billion. The proposed sale was an unusual one. It did not include SNY, the Mets’ regional sports network, which is owned by the Wilpons; the Wilpons were also set to maintain some degree of control of the team for years after the sale. In what didn’t come as much of a surprise given the deal’s unusual nature, things fell apart and the Mets are once again looking for new owners. Enter Alex Rodriguez and Jennifer Lopez.

As reported by Scott Soshnick in Variety, Rodriguez and Lopez have sought help from JPMorgan Chase to raise funds to purchase the team. The piece notes that A-Rod and J-Lo have a combined net worth of around $700 million, which is obviously well short of what is needed to meet a potential purchase price over $2 billion. While that gap might appear insurmountable, an A-Rod/J-Lo owned Mets team isn’t as far-fetched as it may seem. First, consider that any purchase of this type is going to be financed with a considerable amount of debt. As Tom Ley wrote in his analysis of the Cubs’ previous sale — in the Ricketts’ initial plans to purchase the Cubs, there was talk of financing as much as $750 million of a potential $1.15 billion deal, though in the end, they paid $845 million and financed $450 million — teams are bought with significant amounts of financing:

Ted Lerner purchased the Nationals for $450 million in 2006, and the “Debt Primer Presentation” GSP sent to the Ricketts includes the details of that sale as a case study for how a highly leveraged purchase can work. Lerner took on the maximum amount of debt—$360 million—in order to purchase the team. Jim Crane bought the Houston Astros for $615 million in 2011, reportedly by taking on $300 million in debt; the Dodgers ownership group assumed $412 million in debt when they purchased the team in 2012.

Generally, teams are not allowed to carry debt greater than eight times their earnings before interest, taxes, depreciation, and amortization (EBITDA). That would present a problem for the Mets, but the rules are slightly different for purchases. Under the current CBA, the provision regarding sales essentially indicates the need for a plan subject to approval by the Commissioner

They could always raise the needed money from the gym owners of Florida…..

QLE Posted: April 28, 2020 at 01:15 AM | 19 comment(s)
  Beats: alex rodriguez, finance, mets being mets, mets mets mets

 

 

News

All News | Prime News

Old-School Newsstand


BBTF Partner

Dynasty League Baseball

Support BBTF

donate

Thanks to
cardsfanboy
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogTrump wants tax breaks to lure baseball fans back, but the incentive could misfire with attendance still barred
(8 - 2:24am, Jul 09)
Last: Monty

NewsblogEmpty Stadium Sports Will Be Really Weird
(6673 - 1:13am, Jul 09)
Last: What did Billy Ripken have against ElRoy Face?

NewsblogOT – NBA Revival Thread 2020
(495 - 11:43pm, Jul 08)
Last: tshipman

NewsblogTrevor Bauer wants to start every fourth day in 60-game season, and the Reds might let him
(14 - 11:32pm, Jul 08)
Last: What did Billy Ripken have against ElRoy Face?

NewsblogIndians keep Franmil Reyes away from summer camp for not wearing mask at party
(6 - 9:47pm, Jul 08)
Last: Jay Z

NewsblogBraves could ditch ‘Tomahawk Chop,’ but won’t change name
(27 - 9:05pm, Jul 08)
Last: Omineca Greg

NewsblogMarcus Hayes: Zack Wheeler, Mike Trout consider opting out, abandoning their teams and the game
(20 - 8:39pm, Jul 08)
Last: Hysterical & Useless

NewsblogPhillies’ Andrew McCutchen disses Yankees’ hair policy
(13 - 6:55pm, Jul 08)
Last: Buck Coats

NewsblogPrimer Dugout (and link of the day) 7-8-2020
(11 - 5:58pm, Jul 08)
Last: vortex of dissipation

NewsblogMLB umpire Joe West says U.S. coronavirus deaths aren't actually from coronavirus
(40 - 5:50pm, Jul 08)
Last: Joe Bivens, Elderly Northeastern Jew

Newsblog2020 MLB schedule: The 10 matchups, games and series we want to watch most
(4 - 3:49pm, Jul 08)
Last: JRVJ

NewsblogFive things MLB can do right now to confront systemic racism
(13 - 3:29pm, Jul 08)
Last: never forget: the pee tape is 57i66135

NewsblogFormer Red Sox executive Dave Dombrowski joins Nashville MLB initiative
(19 - 2:13pm, Jul 08)
Last: Tom Nawrocki

NewsblogPrimer Dugout (and link of the day) 7-7-2020
(33 - 12:29pm, Jul 08)
Last: Don August(us) Cesar Geronimo Berroa

Sox TherapyThe Perfect Schedule - Games 91-100
(3 - 11:53am, Jul 08)
Last: Jose Needs an Absurd Ukulele Concert

Page rendered in 1.0561 seconds
44 querie(s) executed