Showing posts with label $20 Million Blocks. Show all posts
Showing posts with label $20 Million Blocks. Show all posts

Wednesday, February 22, 2012

Mets have completed the sale of seven minority shares, one investor might be Steve Cohen

According to Steve Marcus of the Ny Newsday, the Mets have completed the sale of seven minority shares of the team for $20 million each, a person familiar with the process said Wednesday.

The source said the seven units are "signed and sealed." Another source identified one of the investors as billionaire hedge fund manager Steve Cohen.

The Mets declined to comment on the status of the sales or Cohen's involvement. A spokesman for Cohen declined to comment.

The club has said it intends to sell 10 units, for a total of $200 million, to pay off existing loans and help with operating expenses during the upcoming season. No timetable was given for an announcement of the agreements. A person with knowledge of the situation has said the investors have been vetted by Major League Baseball.

Thursday, February 02, 2012

Billionaire Investor Trying to buy a piece of Mets

According to the L.A. Times,  Steven Cohen, the billionaire investor who is trying to buy the Dodgers, is on the verge of becoming a minority owner in his hometown New York Mets.

The deal would not preclude Cohen from pursuing the Dodgers, according to two people familiar with the transaction but not authorized to discuss it. Cohen has cleared a Major League Baseball investigation, the people said, which could bode well for his chances in the Dodgers sweepstakes. The league is more stringent in investigating majority owners than minority owners, but for now MLB has not found any grounds to disqualify Cohen from ownership.

Cohen, whose net worth is estimated at $8.3 billion by Forbes, is the founder of SAC Capital Advisors, a Connecticut-based investment firm. The company's records have been subpoenaed as part of a broad federal investigation in which one current and two former SAC employees have been charged with insider trading. No charges have been filed against Cohen or his company, which has said it is cooperating with the government probe.

Cohen is expected to spend $20 million on one of 10 shares offered for sale by the Mets' cash-strapped owners. The Mets are expected to use the proceeds to repay a $40-million loan to Bank of America and a $25-million loan to MLB.

Wednesday, February 01, 2012

Mets expect to sell 10 minority shares by the end of February

According to the Ny Newsday, The Mets expect to sell 10 minority shares of the team by the end of February. The units, priced at $20 million each, would raise $200 million for the cash-strapped franchise and be used to pay existing loans and operating expenses for 2012.

It previously was believed that the Mets would close on a minimum of four units by the end of January. No reason was given for the new timetable or whether the closings would take place at the same time. None of the potential investors has been revealed. Major League Baseball has been involved in vetting the partial owners.

Wednesday, January 11, 2012

Mets closing in on sale of five $20 Million minority shares

The Wilpons and the New York Mets are reportedly close to receiving some much-needed financial help.

According to the New York Daily News, the club is on the cusp of finalizing “at least five” minority shares at $20 million apiece.

Following the collapse of last summer’s deal with hedge funder David Einhorn, the Mets turned their efforts toward raising $200 million bit by bit, through the sale of $20 million non-controlling minority shares.

Major League Baseball gave the team a $25 million loan last year, which has yet to be repaid. New York also took out a $40 million “bridge loan” from Bank of America in December.

Though he wouldn’t disclose a timeframe, Mets general manager Sandy Alderson recently admitted the Mets lost $70 million.

Wednesday, December 21, 2011

Perks to being a Minority Owner of the NY Mets

After David Einhorn backed away from the table after he realized that the Wilpons were trying to renege on their deal to not make him a majority owner if the Mets could not pay him back his investment. The Mets are trying a new approach, $20 Million dollar ownership blocks to friends and family to raise capital. The Mets say that they have 7 investors and the deal(s) can be settled by the end of January. Which will mean the Mets can continue to pay their lawyers off and their unlawful debt.

The perks to having $20 Million to spend on this team are a real joke. It's sought of like having a glorified fan package for the team.

They Include:

- Business card that lists you as "owner" of the Mets.

- Chance to throw out a game's first pitch each season you're a minority owner.

- Exclusive access to take batting practice at Citi Field on a Mets day off. The Times claims each minority investor will have access to an "owners workout day."

- Free parking to Citi Field. Don't get too excited, though: The club will only allow you a single reserved spot to Citi Field.

- One luxury box. That's the good news. The bad news? The team seems to be having issues leasing out the 54 suites at Citi Field, which go for $250,000 to $500,000 a year.

Tuesday, December 13, 2011

Mets to get a cash in January from minority owner shares?

Sandy Alderson said Wednesday that he expected the Mets to get a cash infusion in January when sales to minority investors are expected to close.

Sources familiar with the process recently told that Fred Wilpon and family had commitments from seven investors to purchase $20 million blocks of the team.

The Mets recently took out a $40 million "bridge loan" from Bank of America in order to have cash on hand until the sales are complete to pay items such as a $25 million bond interest payment owed on the stadium this week.

Thursday, November 17, 2011

Mets owners making progress selling minority shares

The New York Mets are making progress in their bid to raise roughly $200 million through selling minority ownership shares in the franchise, sources familiar with the sale told

The infusion would help principal owner Fred Wilpon and family offset operating losses and loan obligations.

A source confirmed the Mets have commitments from investors to purchase approximately seven minority ownership shares at $20 million apiece.

The Wilpons may sell additional investment blocks if demand exists, but would be content with the current $140 million pledged if no more commitments materialize, sources said.

Sources said the Wilpons are offering prospective buyers the ability to cash out in six years and receive interest on their investment, listed in multiple reports as 3 percent annually. That, in essence, means the investment could be viewed as a sort of bank certificate of deposit.

Saturday, November 05, 2011

Mets willing to pay 3% Interest to Investors

The New York Mets are hoping to drum up more interest in the team by paying a little interest.

The money-losing franchise, shopping $20 million to $30 million minority stakes to as many as 10 buyers, is now telling prospective investors that it is willing to pay 3 percent interest annually on the stakes over six years.

Conversely, an investor can opt to keep his stake should it appreciate at greater than a 3 percent rate. No interest will be paid under this scenario.

The investments will also have some loan characteristics.

People will be able, after a half-dozen years, to cash in their small stakes and get their money back -- with a 3 percent annual kicker tacked onto their principal, sources close to the situation said.

Additionally, the Mets are guaranteeing that the minority owners will not be called on to fund the money-losing team during their investment, three sources close to the situation said.

The $20 million stakes value the Mets at roughly $950 million, sources familiar with the new offer said.

“I do think this makes it more interesting for some people,” a potential buyer said. However, he added that there is no path to control of the team so a suitor would have to be comfortable trusting the maligned co-owners, Fred Wilpon and Saul Katz, to run the franchise.

One source familiar with the deal insisted the sweetened offer was not new and characterized the current pitch as basically the same as the first -- just with some tweaking.

Saturday, September 03, 2011

The Mets will be selling 10 Shares at $20 Million each

$20 Million
Newsday's Steven Marcus reports the way the Mets will sell ownership shares is in $20 million blocks that each would be worth 4 percent of the team.

So the 10 shares at 4 percent each would yield $200 million for 40 percent of the team, and match the investment dollars David Einhorn had pledged. Why not that route from the beginning Writes Marcus:

The Mets initially considered selling unit shares, but, the source said, "There was so much interest from big hitters who could write a $200 million check." Most of those willing to put up the full $200 million sought significant say in the baseball operations, the person said, and Wilpon and Katz decided to abandon that strategy after the proposed deal with Einhorn fell through. According to the source, the team has a list with up to 50 parties who expressed interest in a smaller share when the announcement about selling a portion of the team was made in January. "There was a tremendous amount of interest from people who said, 'I can't do $200 million; I'd love to do a smaller amount and have the fun of being a part-owner.' [The Mets] are pretty confident there is a lot of interest in these units."

Thursday, September 01, 2011

Mets owners family and friends might get a piece the pie

ESPN NY's Adam Rubin reports now that David Einhorn is out of the loop for minority partner, the Mets no longer are looking to sell one chunk of the team for $200 million or more.

Instead, sources familiar with the organization's plans said Fred Wilpon and family will sell small blocks of the team to multiple family members and friends that add up to roughly the same amount.

ESPN's Adam Rubin explains, one family member may purchase a $20 million block, a friend $15 million, etc. There will be no means to majority ownership. (If reported runner-up Ray Bartoszek wants a piece, he must now buy one of the smaller shares -- not the large chunk Einhorn was set to purchase, or that was originally discussed with Bartoszek.) There is confidence small purchases can be made quickly, as to not affect the team operations, and with no Major League Baseball obstacles. The money would go to MLB and bank loans and to stabilize the franchise.

I guess it's good to have friends and family that can give you 20 Million each, eh 
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