Mets and Einhorn Still in Discussions

Date: Friday, July 8, 2011
Author: HFN Daily Report

Hedge fund manager David Einhorn is reportedly still in discussions with the New York Mets to acquire a 33% stake in the baseball franchise.

Einhorn, the head of the hedge fund firm Greenlight Capital, has been in negotiations with the Mets since May to finalize him as a minority owner for a $200 million investment.

The exclusive talks between Einhorn and team ownership were supposed to be complete by June 30, according to a New York Post article. Instead, discussions are ongoing as a team spokesperson told the newspaper.

The agreement Einhorn is entering into with the Mets is an interesting one as he could end up with a 60% controlling stake, for an additional $1, if the team fails pay back the $200 million to him within three years. But if the team does pay back the money, he would end up with only 16% percent ownership.

Team owners Fred Wilpon and Saul Katz offered a stake in the team to cover debts and expenses, due in part to a $1 billion lawsuit from Irving Picard, the trustee in the Bernard Madoff bankruptcy case, for their alleged involvement in Madoff's Ponzi scheme.