It’s good to be rich, and even a measly $200 million can buy you one heck of a deal:
David Einhorn, who has been selected to join the New York Mets ownership group as a minority partner, has a path to majority ownership, a source familiar with the still-not-finalized terms told ESPNNewYork.com.
Einhorn has agreed in principal to purchase roughly 33 percent of the team for $200 million, which will infuse cash and keep the organization solvent in the immediate future. In three years, according to the source, Einhorn has an option to up his stake to 60 percent, although principal owner Fred Wilpon and his family have an opportunity to block Einhorn from gaining that majority stake.
The source said the Wilpons can stop Einhorn from gaining the majority share essentially by returning Einhorn’s initial $200 million investment yet allowing him to keep the 33 percent share of the team.
In other words, in exchange for buying the minority stake and infusing cash into the organization now, in three years Einhorn will either have his initial investment returned to him while still retaining his minority share, or he’ll get to become the majority owner of his favorite baseball team as a kid, which just happens to be one of the most valuable franchises in the business. It doesn’t get much better than that in the scope of good buys. What does it mean for the rest of baseball though?
(click “view full post” to continue reading) Continue reading Ownership deal highlights difference between Wilpon, McCourt