David Einhorn Reacts To Dissolution Of Potential Mets Ownership Deal

by Eric Simon on Sep 1, 2011 10:56 AM EDT

David Einhorn has issued a statement regarding his now-dead deal to buy part of the Mets:

"I am disappointed to announce that I will not be purchasing an ownership interest in the New York Mets baseball team at this time. It is clear that it will not be possible for me to consummate the transaction on the terms that the Sterling-Mets organization and I originally agreed to several months ago. The extensive nature of changes that were proposed to me at the last minute has made a successful transaction impossible.

"I want to thank the entire Mets organization and Major League Baseball for their efforts. This experience will always be a happy memory for me because of the Mets’ fans. A good number of you have reached out to offer me encouragement. I will always be touched by the warmth that you showed me."

Boo. We have nerds in the front office, I wanted a nerd in the ownership suite, too.

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Not even as a joke

I had a dream about this a few nights ago.

Damn.

Nope.avi

by NetsMets4Life on Sep 1, 2011 11:01 AM EDT reply actions

"Smell you later . . . forever!"

Damn.

"He's definitely mixing it into his repertoire. That's French for 'repertoire' " - Keith Hernandez

by Catsmeat Potter-Pirbright on Sep 1, 2011 11:06 AM EDT reply actions

Does anyone know what the changes were?

"Blinding ignorance does mislead us. O! Wretched mortals, open your eyes!" Gil Hodges IS a Hall of Famer.

AA Gamethread Embiggening Record Holder- 458 posts (08/24/11)
3rd Place- 2011 AAOP Contest

by Brooklyn Dodgers Mets Fan on Sep 1, 2011 11:08 AM EDT via mobile reply actions

Thats what I would like to know

Insert witty signature here

by BlueChill on Sep 1, 2011 11:23 AM EDT up reply actions

it required a name change to "duke snider"

by cntrlalt on Sep 1, 2011 11:40 AM EDT up reply actions 1 recs

Gotta love the Duke

"Blinding ignorance does mislead us. O! Wretched mortals, open your eyes!" Gil Hodges IS a Hall of Famer.

AA Gamethread Embiggening Record Holder- 458 posts (08/24/11)
3rd Place- 2011 AAOP Contest

by Brooklyn Dodgers Mets Fan on Sep 1, 2011 2:08 PM EDT via mobile up reply actions

One was that the initial stake for Einhorn would be half of what it originally was supposed to be; Down from 33% to 16.5%. The other was that time period for Sterling to repay Einhorn changed from two years to five years.

__________________________________________________
"He who gets the best players usually wins" - Bobby Bowden

by Russ on Sep 1, 2011 12:51 PM EDT up reply actions

So, crazy last minute changes?

Sounds fair.

Darrelle Revis once won a game of Connect Four in three moves.

by bm01bath on Sep 1, 2011 11:13 AM EDT reply actions

I just want to interupt my vacation

To log on to say: Fuck You Wilpons.

Thanks, now back to the pool.

@metsflu: Why did you decide to grow a beard?
@RADickey43: Dont you understand, the beard grew me.

by Dandy Salderson on Sep 1, 2011 11:13 AM EDT reply actions

BACK TO THE PILE!

What Would Matt Szczur Do?
Fact on Villanova Sports

by Hoyadestroya85 on Sep 1, 2011 12:25 PM EDT up reply actions 4 recs

Well, at least

he got to see a couple of games from a luxury box for free! That’s pretty cool, right?

Chamption of the R.A. Dickey Face contest and "Cromulent Photoshopper Extraordinaire" of Amazin' Avenue!
You might know me as mistermet.

by Steve Schreiber on Sep 1, 2011 11:16 AM EDT reply actions

My take

Who cares. I mean, seriously, who cares.

Learn something new every day: http://dlewis.net/nik

by Dan Lewis on Sep 1, 2011 11:36 AM EDT reply actions

You should

1. The team again had a liquidity crisis
2. The best hope for new ownership is gone
3. Speculation, but he would probably have been a terrific owner, and is a non-Dolan
4. Wilpons still up to their old incompetent and semi-unethical ways

@metsflu: Why did you decide to grow a beard?
@RADickey43: Dont you understand, the beard grew me.

by Dandy Salderson on Sep 1, 2011 11:38 AM EDT up reply actions 1 recs

Nah.

We’re Amazin Avenue. We’re supposedly metrics and evidence based here. When it comes to ownership, it’s a big ol’ crap shoot.

I don’t trust the Wilpons when it comes to player/personnel decisions, for good reason. But when it comes to the team’s financial health overall, they have all the information and all the money. I have neither, and if you believe that the reports from the beat writers — the same people who think Mejia should have been an RP and Alex Cora was a good investment — then you’re crazy. They don’t know diddly.

Einhorn may have been a great owner. But he may have also been a terrible one, or a non-issue relegated to secondary status, or a distraction with no real power, or a massive culture clash waiting to happen. And the odds of a lawsuit from the weird details were bad, too.

Basically, any new owner may be better, may be worse, may be basically irrelevant to the conversation.

Learn something new every day: http://dlewis.net/nik

by Dan Lewis on Sep 1, 2011 12:02 PM EDT up reply actions

Completely disagree

I am as focused on using empirical evidence as anyone on AA, and to a degree you can make a case that Einhorn is an unknown, but we do know for a fact that the Pons have a history of incompetence, nepotism, arrogance and being… less than forthcoming.

I have never met Einhorn, but I know people that know him, and I am not making as completely blind leap here when I say that as an owner, this would have been a major upgrade.

The silver lining is obviously that the Pons finally got it right when they hired Sandy & co., and they appear to be going nowhere. But this is still signifcant news as far as the future of the Mets go. And significantly bad news as well.

@metsflu: Why did you decide to grow a beard?
@RADickey43: Dont you understand, the beard grew me.

by Dandy Salderson on Sep 1, 2011 12:24 PM EDT up reply actions

They have a history of also investing back into the team

and giving their GM a lot of cash to spend with. That’s all I care about, and it’s undetermined as of now if that’ll stop.

"Blinding ignorance does mislead us. O! Wretched mortals, open your eyes!" Gil Hodges IS a Hall of Famer.

AA Gamethread Embiggening Record Holder- 458 posts (08/24/11)
3rd Place- 2011 AAOP Contest

by Brooklyn Dodgers Mets Fan on Sep 1, 2011 2:10 PM EDT via mobile up reply actions

Does the team really have a liquidity crisis?

The Mets claim that Sterling moved capital to the Mets to cover expenses. That’s probably true or we would be reading about creditors bringing Sterling to court. Where does the money come from? I’m not sure, but my guess is SNY.

__________________________________________________
"He who gets the best players usually wins" - Bobby Bowden

by Russ on Sep 1, 2011 12:46 PM EDT up reply actions

Good question

Not sure. Supposedly SNY has a ton of debt tied to it as well.

@metsflu: Why did you decide to grow a beard?
@RADickey43: Dont you understand, the beard grew me.

by Dandy Salderson on Sep 1, 2011 5:27 PM EDT up reply actions

In other news, we pick the minor league guys from the Brewers today in order to complete K Rod trade.

http://twitter.com/#!/Haudricourt/status/109285191859716096

Nope.avi

by NetsMets4Life on Sep 1, 2011 11:40 AM EDT reply actions

.

#Brewers complete K-Rod trade by sending RHP Adrian Rosario and LHP Daniel Herrera to Mets. Link

In lobby for: Jaime Cevallos, Zack Lutz, orange unis and Rickroll as the 7th inning song.
The Unwritten Rules of AA

by Michkin on Sep 1, 2011 1:53 PM EDT up reply actions

Love Danny Ray Herrera

A midget who throws a screwball- what’s not to like?

"Blinding ignorance does mislead us. O! Wretched mortals, open your eyes!" Gil Hodges IS a Hall of Famer.

AA Gamethread Embiggening Record Holder- 458 posts (08/24/11)
3rd Place- 2011 AAOP Contest

by Brooklyn Dodgers Mets Fan on Sep 1, 2011 2:11 PM EDT via mobile up reply actions

What changes? If I can change, then the Mets can change...

WE ALL CAN CHANGE….

Proud to root for the Jets, Mets, and Islanders!!!
Twitter: cmauceri524

by CharlieIsles on Sep 1, 2011 11:47 AM EDT reply actions 3 recs

+a lot

"It's such a fine line between stupid...and clever."
The Dude abides.

by Iago on Sep 1, 2011 12:40 PM EDT up reply actions

If I ever become a billionaire

and come that close to owning the mets, just to have it ripped out from under me…

that would really really suck.

I think it was Bobby V who said: "You are never as good as you are when you are at your best, and you are not as bad as when you are at your worst."

Like the really funny uncle with a healthy bourbon habit who matches every brilliant Thanksgiving story with one or two ill-advised racist jokes or boob grabs, we’re stuck with Melo. So we might as well learn to love him — quirks and all. http://knickerblogger.net/2011-report-card-carmelo-anthony/

by gbaked on Sep 1, 2011 11:52 AM EDT reply actions

Mets' fans

Of course he had the encouragement of the Mets fans!!!! Why wouldn’t he??? Damn! We were this close. I really, really, really do not like the Wilpons.

by CCE718 on Sep 1, 2011 12:03 PM EDT reply actions

The Sticking Point

I heard on WFAN that Einhorn wanted guarantees regarding imminent approval as majority owner in the eventuality that he purchases the team from the Wilpons 5 years down the line.

by Ramon Saurez on Sep 1, 2011 12:36 PM EDT reply actions

Uh...

Yeah. I don’t think its a big deal. I mean, I guess for the Wilpon haters, this just means they aren’t going anywhere yet; it seems clear they backed out to avoid Einhorn becoming an eventual owner. But getting cash from smaller partners (which is what Adam Rubin reported them likely doing) versus getting cash from Einhorn…. whats the difference? Cash is cash.

by nmigliore on Sep 1, 2011 12:37 PM EDT reply actions

Another Ponzi Scheme

The deal is that the Wilpons are running another stupid Ponzi scheme where they sell off chunks of a failing franchise to their friends and families to bide time until they make enough money to pay them off. Meanwhile, the fans are left in the crapper while they cross their fingers hoping for fans to come back to the ballpark.

by Ramon Saurez on Sep 1, 2011 12:39 PM EDT up reply actions

lawl

by nmigliore on Sep 1, 2011 12:42 PM EDT up reply actions

HAHA

Yeah, it will be real funny when the team suffers from another liquidity crisis and will still have no co-owning partner to infuse capital. So funny! LOLOLOLOL. Great times!

by Ramon Saurez on Sep 1, 2011 12:50 PM EDT up reply actions

LOL!

They are selling off 240% of ownership in 480 different .5% lots. Hey, if they get cauight they can just say again that they didnt realize since they are “just strictly real estate guys”.

@metsflu: Why did you decide to grow a beard?
@RADickey43: Dont you understand, the beard grew me.

by Dandy Salderson on Sep 1, 2011 4:28 PM EDT up reply actions

Real estate guys? Nope. They're producers!

__________________________________________________
"He who gets the best players usually wins" - Bobby Bowden

by Russ on Sep 1, 2011 5:39 PM EDT up reply actions

Einhorn is Fickle?!

Fickle is Einhorn!
EINHORN IS A MAN!

What Would Matt Szczur Do?
Fact on Villanova Sports

by Hoyadestroya85 on Sep 1, 2011 12:41 PM EDT reply actions 3 recs

It's gotten to the point

that my dislike of the Wilpons is so great, it will actually slightly detract from my enjoyment of the Mets becoming good again if it happens with the Wilpons as the owners.

2009 Did Not Happen

by cjmulrain on Sep 1, 2011 12:54 PM EDT reply actions

Welcome to knowing how it feels to be a Knicks fan....

by Ramon Saurez on Sep 1, 2011 12:55 PM EDT up reply actions

If it makes you feel any better

When the Mets become contenders again, it will be because if Sandy & Co., who were supposedly forced on the Mets by Selig. So you can think of the Mets becoming good against the Wilpon’s will.

__________________________________________________
"He who gets the best players usually wins" - Bobby Bowden

by Russ on Sep 1, 2011 1:00 PM EDT up reply actions

You have nothing to worry about.

As long as they own the team, the team won’t be good.

It’s whatyacall, there, “self-referential…”

Oh, the butcher and the baker and the people on the street: wheredotheygo?!?!? Right here: http://www.mets360.com/

by CharlieH on Sep 1, 2011 2:52 PM EDT up reply actions

Same old Wilpons.

Just when we hoped the ball was in Einhorn’s court, they come out with stupid changes at the last minute so they wouldn’t look the fool in losing their franchise.

Mark Cuban, please save us!

Proud supporter of a New York baseball team and a Boston football team. Yeah, deal with it!
"We don’t listen to the hype. I don’t think we ever have. We really take after our coach and he says ‘When you win, say little. When you lose, say less.'"--Tom Brady
The 2011 New York Mets: I don't know what to describe them as...
Staunch Parishioner Of The First United Church of R.A. Dickey

by R_Adragna on Sep 1, 2011 1:11 PM EDT reply actions

Cuban wont be let in, people need to realize that

Insert witty signature here

by BlueChill on Sep 1, 2011 5:26 PM EDT up reply actions

Also, they're is no point in hoping that someone will buy the Mets

when they’re clearly not for sale in any meaningful way.

__________________________________________________
"He who gets the best players usually wins" - Bobby Bowden

by Russ on Sep 1, 2011 5:40 PM EDT up reply actions

I hope that someone kidnaps the Wilpons and hypnotizes them so that they want to sell

__________________________________________________
"He who gets the best players usually wins" - Bobby Bowden

by Russ on Sep 1, 2011 1:14 PM EDT reply actions

My understanding, however faulty…

Einhorn offered a $200 million loan for two years at 41.42% interest, compounded annually. The Wilpons would put up 30-33% of the club as collateral for the loan. If they paid the $200 million back, that would only buy back a fraction of the collateral, leaving Einhorn in possession of 16% of the club (the 16% would be the interest). If they didn’t pay it back, Einhorn would have the option of buying an additional 27-30% (bringing his share up to 60%) for an additional $300 million, making him majority owner.

The Wilpons countered (late in the process, according to Einhorn) with an offer of a $200 million loan for five years at 14.87% interest compounded annually — same collateral, same residual to Einhorn upon repayment. The Wilpons’ counteroffer supposedly had no option for Einhorn to become majority owner, though he would’ve been able to increase his minority share at an inflated price (the same relative cost per share as Einhorn’s offer).

In other words, the Wilpons losing majority control was never going to happen. Get used to it.

by Curtis3331 on Sep 1, 2011 1:20 PM EDT reply actions

It might have happened had Picard been entirely successful

But that bubble had been burst already. If there were another crippling blow to the real estate market Einhorn may have still been able to gain control (the Wilpons have lost at least one building to the bank, unable or unwilling to service the debt), but who could wish for that?

But, Jeff Wilpon is going to be running an important element of our lives for decades to come. I had some hope that if his close associates were more Einhornian than Madoffean, he might get a clue or two about how to make an enterprise a real success.

by SuperT on Sep 1, 2011 2:03 PM EDT up reply actions

You're right; 'never going to happen' was too strong.

Back when $1 billion was still a reasonable possibility, they could have signed a contract that would’ve resulted in their loss of majority status. Whether intentionally or serendipitously, they managed to stall the negotiations until that result was no longer reasonable. If it was intentional, they aren’t as financially inept as everyone seems to think.

by Curtis3331 on Sep 1, 2011 3:09 PM EDT up reply actions

But there most likely is a liquidity problem

Picard still has a strong claim for $300 million. (That’s his count of the money they took out of Madoff over and above what they put in). The judge has upheld all such claims. Doesn’t look like they’ll get hit with the billion that P wanted, but $300m probably too much for the Ws, from all the cash flow issues they seem to be having. Maybe they’re counting on a new real estate boom, but for the near future forget about their going all-out for talent. I agree with the folks who want to hijack and kill them.

by crmorris on Sep 1, 2011 4:27 PM EDT up reply actions

Plus their cash reserves

Were completely wiped out. Everything else is leveraged, including the Mets and SNY.

@metsflu: Why did you decide to grow a beard?
@RADickey43: Dont you understand, the beard grew me.

by Dandy Salderson on Sep 1, 2011 4:29 PM EDT up reply actions

I agree they're really really pressed,

Or that building wouldn’t have gone back to the bank just recently, but I do think that the apparent failure of Picard’s major push (the 1 billion) emboldened them, and they changed what they had agreed to with Einhorn. (I also suspect they may not have been fully clued into what Einhorn hoped to do to them until they read the press on the deal. It’s a shame he didn’t ask for secrecy until the deal was signed and sealed. The Wilpons love secrecy.)

by SuperT on Sep 1, 2011 4:44 PM EDT up reply actions