Showing posts with label Mets Limited Partner. Show all posts
Showing posts with label Mets Limited Partner. Show all posts

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, 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.)

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