Showing posts with label David Einhorn. Show all posts
Showing posts with label David Einhorn. Show all posts

Thursday, September 01, 2011

The Mets release statement on Einhorn negotiations


The New York Mets' Owners announced today that their period of exclusive negotiations with David Einhorn regarding a minority, non-operating interest in the Mets has expired and Ownership has decided not to extend the exclusive negotiating period any further. After months of negotiation, the parties were unable to reach agreement, and Mets Ownership has decided to explore other options.

Ownership has provided additional capital to cover all 2011 losses and is moving forward with the necessary resources to continue to operate the franchise. Ownership will explore other strategic transactions and is under no financial pressure to do a deal on any particular schedule.

"We are very confident in the team's plans - both off and on the field," said Mets Chairman and CEO Fred Wilpon. "We will engage with other individuals, some who have been previously vetted by Major League Baseball, along with other interested parties, regarding a potential minority investment into the franchise. My partners and I thank David for his interest in considering this opportunity and wish him well in the future."

Breaking News: David Einhorn is out as minority owner of the team


According to the Daily news, Potential savior of the New York Mets David Einhorn is out as a minority investor in the team.

According to reports , a source familiar with the negotiations for Einhorn to invest $200 million and gain a 33% stake in the Mets, the owner of Greenlight Capital "overplayed his hand" with owners Fred and Jeff Wilpon and Saul Katz and will not invest in the team.

"After months of negotiation, the parties were unable to reach agreement, and Mets Ownership has decided to explore other options," the team said in a statment.

It is unclear if the Mets' owners will seek another investor. Wilpon and Katz are embroiled in a $1 billion lawsuit filed against them by the trustee for the Bernie Madoff Ponzi scheme case, and have faced cash shortfalls in the wake of the litigation.

According to the statement, they "have provided additional capital to cover all 2011 losses and is moving forward with the necessary resources to continue to operate the franchise. Ownership will explore other strategic transactions and is under no financial pressure to do a deal on any particular schedule."

Friday, August 26, 2011

Einhorn/Mets deal, Still not a done deal and won't be in August


According to Mike Ozanian of Forbes,  the New York Mets and hedge fund manager David Einhorn will not close their deal to make the hedge fund manager a minority owner in the baseball team this month.

This deal which was first announced in May, was to get the the money-losing debt-laden baseball team some badly needed cash.



In early July, ESPN.com wrote the deal would would likely close in August. And in case there were still any doubters after the Mets began to cut their payroll by trading closer Francisco Rodriguez, in late July the New York Times reported that the deal between the Mets and Einhorn was essentially done except for the paperwork.

Mike Ozanian has learned that there will be no deal between the Mets and Einhorn in August. People familiar with the matter say the two sides are still on track to come to terms. Meanwhile, the team’s losses on the baseball diamond and income statements continue to pile up.

Ozanian does not know if a deal can get done, but says it's rather obvious that the more greater the team falls into the red, the more leverage Einhorn will have.

Sunday, August 14, 2011

Einhorn's Mets deal looks like a winning hand for him


According to the NY Post,  David Einhorn has all the bases covered in his new deal to buy a minority stake in the New York Mets, which is expected to be completed in the next two weeks.

"This looks much less like he's shorting the team," a source close to the situation said.

He has structured what was an all-equity $200 million deal as roughly half cash and the rest as a loan, according to an exclusive story The Post broke this week.

Einhorn will likely collect interest on his five- year $100 million loan that could amount to more than $30 million, and get tax benefits from his $100 million investment in the team -- for a 17 percent stake -- since the Mets are on pace to lose $60 million this year. Those losses can help offset taxes on his other personal investment gains.

If the Wilpons pay him back, he also keeps his stake in the team worth at least $100 million.


Tuesday, August 09, 2011

David Einhorn restructures deal and is close to officially becoming the Mets Limited Partner


According to the NY Post, Einhorn has restructured his $200 million investment in the Mets, and in doing so, erased opposition from the team's bank lenders.

The bank lending syndicate of the money-losing team, led by JPMorgan Chase, balked at the original terms because it put Einhorn on the repayment line in front of them. Their loans are due in June 2014.

The report says that the deal could close by the end of the month. Under the new deal, half of Einhorn's money will go towards repaying a loan from Major League Baseball and paying down bank debt, while the other half will go towards team operations.

Also  he'll now get a 17 percent stake, as opposed to a 33 percent stake, and he'll also reportedly become a limited partner. The Wilpons would now have five years (instead of three) to pay back his $200 million. If they do, he retains his 17 percent stake; if they don't, he'll still be able to buy a majory stake for a token amount. (Previous reports said that the token amount was $1.)

Thursday, July 28, 2011

NY Times: Mets/Einhorn deal almost finished, waiting for paper work to be completed


The Mets deal to sell a minority stake in the team for $200 million to David Einhorn is finished except for completing the deal’s paperwork, according to the NY Times.

The deal was slowed by Einhorn’s dealings with the banks that have lent the team more than $400 million. The banks are now satisfied with the transaction’s terms (NY Times Source).

The acquisition of a minority stake is usually approved by Commissioner Bud Selig, which would probably give the Mets access to the $200 million as early as next month.

The boatload of cash should be a relief to Fred Wilpon and Saul Katz, the Mets’ owners, who face a $1 billion lawsuit that has been filed by Irving H. Picard, the trustee for the victims of Bernard L. Madoff’s Ponzi scheme.

Sunday, July 24, 2011

JP Morgan Chase is holding up the Einhorn/Mets deal..


According to the NY Post,  the Mets' pending deal to sell a minority stake in the team to David Einhorn is dragging on well beyond its expected closing date because lender JPMorgan Chase is not letting the team structure the deal as a loan, making it harder to complete, The NY Post has learned.

"The Wilpons are having a tough time with the banks," a source close to the talks said.

Fred Wilpon's Sterling Equities, which owns the Mets, last week extended its exclusive negotiations with Einhorn after failing to reach a deal by the June 30 deadline.

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.

The 43-year-old Einhorn, if he is not repaid in three years, has the option of acquiring a controlling stake in the Mets at a predetermined price.

Read more: Go to NY Post

Thursday, July 21, 2011

Mets News and Notes: Izzy, Wilpon, Bay, High Temperatures, Wright, Einhorn


Mets News and Notes:

Isringhausen:

The Mets plan to hold Jason Isringhausen at the trade deadline in order for him to serve as a mentor to Bobby Parnell, SI.com reported.

Isringhausen is sure to draw inquiries anyway before the July 31 trade deadline, especially after this week's performances. A day after notching his first save in three years Monday, Izzy fired two scoreless innings against his former employer, the St. Louis Cardinals. That appearance included consecutively striking out Albert Pujols, Matt Holliday and Lance Berkman.

Wilpon:

Buster Olney reports ...

Within the Mets' organization, sources say, there is a growing confidence that the Madoff case is veering in favor of the Wilpons, and that if this continues, they will re-establish full control of ownership of the Mets. And there has been unhappiness with how David Einhorn, who has been negotiating to be a minority owner, has taken the spotlight without having a finished deal. If the Madoff case ends favorably for the Wilpons, it could be that Einhorn will be buried in minority ownership in the years to come.

Bay:

Mets left fielder Jason Bay will not play this afternoon against the St. Louis Cardinals, manager Terry Collins said.

Bay was pulled from Wednesday night's game at Citi Field in the fourth inning after his right hamstring tightened up.

"I talked to Jason this morning," Collins said today. "He feels better. He does. But I'm gonna give him the day off. I don't think [his hamstring] is as tight as it was, but I don’t see how 12 hours later it's gonna feel that much better."

Collins expects that Bay will return over the weekend when the Mets begin a three-game series against the Florida Marlins in Miami.

Bay, 32, said after Wednesday night's game that he initially tweaked his hamstring Saturday afternoon when he tripped over the foot of the Philadelphia Phillies' Ryan Howard while crossing first base.

Wednesday, July 20, 2011

Mets talking to other investors in case Einhorn's deal falls through


Hedge fund owner David Einhorn has been assumed to have an all but done deal to buy a minority share in the Mets, but the New York Daily News reports that the Wilpons are talking to other potential investors, even as they continue to try to finalize a deal with Einhorn.

Which is their right, because the exclusivity period for negotiations with Einhorn ended a couple of weeks ago. Einhorn, the Daily News reports, has been driving a hard bargain on some final details, so the Wilpons are talking to others, including commodities trader Ray Bartoszek.

The thinking: Einhorn is still probably going to get his stake, but a deal had better get done soon lest the Mets find others who are willing to give them a sweeter deal.

Tuesday, July 12, 2011

Bud Selig Approves Mets Ownership Deal with Einhorn


Major League Baseball commissioner Bud Selig said Tuesday that he will approve the partial sale of the Mets to hedge-funder David Einhorn once the deal is finalized.

The sale of a $200 million minority stake in the club has taken longer than expected to complete. Einhorn initially said he expected to close the deal by the end of June, and neither side has offered an updated timetable. But once the terms are agreed on, Selig said he won't hold up the deal.

"What the [heck], he played baseball in my backyard. How can I turn him down?" Selig said at a luncheon with baseball writers before the All-Star Game. While growing up in a Milwaukee suburb, Einhorn said he used to play baseball in the backyard of Selig's neighbor.

"Yeah, he's cleared," Selig said. "Now, they have to finish the deal. And by the way, I think they're making very good progress."

Thursday, June 16, 2011

Audio: Mike Ozanian From Forbes Magazine talks about $1 Buyout Story with Mike Francesa



Wednesday, June 15, 2011

David Einhorn could buy out the Mets Ownership (Fred Wilpon) for a dollar ($1)?


According to to Forbes/USA Today:
One dollars buys very little these days, but that could be how much David Einhorn pays to gain control of the New York Mets.

Einhorn is the hedge fund manager who last month agreed to pay $200 million for a one-third stake in the cash-desperate team, subject to the approval of MLB.

But Forbes reports there's a potential added wrinkle to the deal. The magazine reports it has learned that if Mets owners Fred Wilpon and Saul Katz don't repay the $200 million to Einhorn within three years he would have the right to obtain a 60% interest in the team for the "strike price" of just $1.

Forbes says the agreement isn't final yet.

Saturday, May 28, 2011

Money Matters: Einhorn's deal provides Mets stability through next year



According to the NY Times, the $200 million from David Einhorn's investment is almost certain to meet the team’s most pressing needs and potentially stabilize its finances at least through next year, several bankers and baseball executives said.

The Mets are expected to use $75 million of Einhorn’s money to retire some of their bank loans and another $25 million to repay a loan, due next month, that the team received from Major League Baseball, according to several people familiar with the team’s finances. This should save the Mets tens, and perhaps hundreds, of thousands of dollars in interest payments.

The remaining $100 million should help with the team’s most urgent issue — paying its players.

With a payroll of about $142 million this season, roughly $12 million in checks must be cut every two weeks. At the very least, Einhorn’s investment would mean that the Mets will have little trouble on that front for the remainder of this season.

Video: WFAN's Craig Carton Makes Statement on David Einhorn (New Minority Owner)


Einhorn could own 60 percent of the team and be majority owner




Adam Rubin of ESPN New York reports that David Einhorn does indeed have a path to majority ownership with the Mets. Of course, that was the assumption all along, as it wouldn’t make much sense if he didn’t have that option, but the exact terms of the deal are real interesting.

Einhorn has agreed in principal to purchase roughly 33 percent of the team for $200 million, which will infuse cash and keep the organization solvent in the immediate future. In three years, according to the source, Einhorn has an option to up his stake to 60 percent, although principal owner Fred Wilpon and his family have an opportunity to block Einhorn from gaining that majority stake.

The source said the Wilpons can stop Einhorn from gaining the majority share essentially by returning Einhorn’s initial $200 million investment yet allowing him to keep the 33 percent share of the team.

So, basically, in three years either Einhorn will either have majority control of the Mets or get his initial $200 million investment back and still keep one-third of the team. Wilpon's need for money makes them put themselves in this situation..

Thursday, May 26, 2011

David Einhorn is selected as the team's preferred minority investor/owner


The New York Mets today announced that David Einhorn has been selected as the Met's preferred partner and that the Mets and Mr. Einhorn have entered into exclusive negotiations with respect to a minority, non-operating investment in the team.

The $200 million personal investment by Mr. Einhorn is subject to the negotiation of a mutually acceptable definitive agreement for the transaction, as well as required approvals by Major League Baseball. The parties expect to enter into definitive agreements by late June.

"We are very excited about David joining our ownership group for several reasons," said Fred Wilpon, Chairman & Chief Executive Officer, New York Mets. "David's investment immediately improves the franchise's financial position. Equally important, David's intelligence, integrity and success in both business and civic affairs provides us with another perspective in evaluating what is best for this organization and our fans, and we welcome his input. In partnership with David, we look forward to achieving our ultimate goal of again becoming World Series champions."

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