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 ...