The new minority owner of the New York Mets baseball team, David Einhorn, will own 33 percent of the team when the deal is done, and will have the option buy up to 60 percent of the team in three years, according to a report by ESPN.com.
The Wilpon family would have veto power over the increased share, but could only block Einhorn's appeal for majority ownership if they repaid the $200 million Einhorn is paying initially--and Einhorn would retain his 33 percent share. In this scenario, Einhorn is basically loaning the Wilpons $200 million, and the interest they would pay would be 33% of the team.
Mets ownership refused to comment on the deal. We have both confidentiality and non-disclosure agreements and will continue to honor both, the team said in a statement.
The Mets lost $51 million last year and are forecast to lose $70 million this year. The owners of the team, Sterling Enterprises, led by the Wilpon family, lost $500 million in the Bernie Madoff fraud scandal, leaving the baseball team in a teetering posture. Major League Baseball lent $30 million to the Mets late last season amidst a cash-flow emergency.
I look forward to partnering with the Wilpon and Katz families through the good seasons, the tough seasons and especially the championship seasons, Einhorn said.