Showing posts with label Mets Minority Ownership. Show all posts
Showing posts with label Mets Minority Ownership. Show all posts

Tuesday, March 20, 2012

Bob Pittman and Kenneth Lerer among the twelve minority investors


Pittman
According to The Wall Street Journal, Media executive Bob Pittman and venture capitalist Kenneth Lerer are among several investors who combined to purchase one $20 million stake in the Mets, according to a person familiar with the deal.

The Mets completed the sale of 12 minority stakes in the team for $240 million last week. They publicly acknowledged the deals for the first time Tuesday but declined to identify any outside investors. "We will not be providing any further details on the transaction," the team said in a statement.

Pittman is chief executive of Clear Channel Media Holdings. Lerer is manager of Lerer Ventures, a seed stage venture capital fund, and a co-founder of The Huffington Post. His investment was made with personal funds, the person said.

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 ESPNNewYork.com 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 ESPNNewYork.com.

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.

Monday, October 31, 2011

Jeff Wilpon says Mets' sale of minority shares are going very well


According to the NY Daily News, Mets chief operating office Jeff Wilpon said Monday that his team's sale of minority shares was "going very well."

After negotiations with potential investor David Einhorn collapsed last month, the Mets - whose principal owners are Fred Wilpon, Jeff Wilpon and Saul Katz - decided to sell smaller shares of the team, for approximately $20 million apiece. Since then, there has been scant news about the process.

Wilpon said Monday that the club was under no pressure to complete all deals by a certain date.

"There is an internal timetable that we're not going to share, but there is not a deadline where we have to make sure that everything has to be done," he said. "Some of the people might never be public. I don t think anybody knows all the minority shareholders in the other teams... it's just not widely known."

The Mets have yet to announce the completion of any sales.

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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