David Einhorn-New York Mets Deal Could Eventually Lead To Him Becoming Majority Owner

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David Einhorn-New York Mets Deal Could Eventually Lead To Him Becoming Majority Owner

The New York Mets' financial "bailout" may have taken another positive step, according to various reports.

David Einhorn's $200 million agreement with the Mets -- which accounts for 33 percent of the team -- is technically a temporary three-year loan. After these three years, Einhorn will have the ability to acquire a "majority stake" in the team, which was first reported by ESPN NY's Adam Rubin.

Matthew Futterman of the Wall Street Journal explains:

Because the team is carrying about $425 million in debt, the value of the team is roughly $1 billion, according to the person. In three years, Mr. Einhorn would have the right to acquire an additional 27% of the team based on the $1 billion valuation, a move that would make him the team's majority owner.

Wilpon can turn down the offer after the two years, but then he must pay the $200 million back to Einhorn and allow him to keep the 33 percent stake of the Mets. Doing this will net Einhorn more than $130 million just on interest of the loan alone.

After three years, the Mets could have a new principle owner, as Einhorn could have at least a 60 percent stake in the team. The Wilpons have owned the team for more than three decades.

This is definitely great news for the Mets organization because, to me at least, it slowly transitions to some financial stability. It doesn't mean that the situation is over -- the Wilpons are certainly not in the clear -- but at least there is some optimism around this organization's finances now. You almost don't want the Wilpons to recover so that this team can turn a new page ... 

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David Einhorn Not A 'Sit Back And Watch' Investor

CNBC sports business reporter Darren Rovell wrote today that he is “shocked” that David Einhorn has stepped to the plate as the minority owner the New York Mets have been searching for.

Einhorn is not getting a leading voice with the Mets, or a share of the SNY TV money. Rovell said he is surprised because Einhorn is "not exactly a “sit back and watch” kind of guy.

Here is how Einhorn explained his decision to Rovell in an interview on Thursday:

“All I can really say is that I’m very comfortable with the financial arrangement that we’re contemplating for this transaction,” he said.

Maybe Einhorn is doing this to help out a friend in Fred Wilpon, though a $200 million investment seems like a lot more than just help. Maybe he is doing it, and accepting the short-term lack of authority, because in the end he believes the Wilpons will have to sell and this puts him in perfect position to take full control of the franchise.

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