If you presumed the Mets had suspended their efforts to find a new owner, think again. Per Daniel Kaplan of The Athletic (subscription link), the club’s representatives are continuing to seek purchasers.
It’s hard to believe it was less than two months ago that the club broke off its anticipated deal with minority owner Steve Cohen. Under that arrangement, the current Wilpon ownership group would’ve retained operational control for a five-year period. The team is now offering an arrangement with no strings attached.
Suffice to say the economic picture for a baseball franchise is rather more complicated now than it was then. Still, it sounds as if the Mets are sticking to their $2.6B asking price and still pressing forward in an effort to find a taker.
As Kaplan writes, some initial leads have already dried up with the sudden economic downturn. Ongoing uncertainty, both generally and in the operation of a major-league organization, will surely give added pause.
Still, this represents quite a rare opportunity to take over a New York-based baseball club. If indeed the team is able to maintain traction on the sale effort, it could make for an interesting test of the value of franchises.
It’s often said that operating profit isn’t the true source of a team’s value; rather, like a piece of fine art, the investment lies in capital appreciation. That may well be. But teams have increasingly shown an appreciation for the end-of-year bottom line. Cash flow is a significant part of the picture when it comes to the game of baseball. In this case, the spigot seems sure to turn back on, but it’s possible it may sputter for a time and may not flow in quite the same way once it steadies.
acarneglia
Jerry Seinfeld needs to get in on this
prov356
Now that’s a good idea. He could offer Keith Hernandez a front office job.
parx
Costanza was all over launch angle in the 90s, could be perfect if they can pry him from the Yankees
prov356
…And they can switch to cotton uniforms. I’ve been talking to some of the guys, and some of them, I don’t want to mention any names, but some of them are not too happy with the polyester uniforms. They get very hot in the polyester, you know, it’s not a natural fiber. They would prefer cotton. Cotton breathes, you see, it’s much softer. Imagine playing games, and your team is 5 degrees cooler than the other team. Don’t you think that would be an advantage? They’re cooler, they’re more comfortable, they’re happier…they’re gonna play better.
agentx
Now, about Danny Tartabull’s swing…
prov356
He’s opening up his shoulder. I’m only saying this to you because I like to hear myself talk.
Vladguerrerojr20
Costanza would distract everyone with the aroma of calzones coming from his office.
miltpappas
George has a way the Mets could get Trout and Scherzer and it wouldn’t cost them very much.
EasternLeagueVeteran
What? Cotton? Are you serious? Why don’t they just wear no underwear? I think your fitted cap is one size too small. If that was a Seinfeld reference,I apologize, I missed it. I am plenty old enough, but never got into Seinfeld.
acarneglia
Just make sure they button up the jerseys correctly
rightturnclyde
Serenity now!
cyclone24
Seinfeld Kevin James and Chris Rock and Jim Breuer should all get together and buy the Mets . All of them are huge Mets fans
EasternLeagueVeteran
Now that’s an idea.
prov356
I couldn’t imagine spending $2.6b and not having total operational control of my team for five years.
elscorchot
The article said they’re now willing to sell without strings attached.
rct
Which probably isn’t true. They stuffed in the five years thing at the last minute on the previous buyer.
TeddyBallgameYazJimEd
The 5yr thing was not stuffed in…it was part of the original deal.
Google stories back from when it was 1st announced.
prov356
Yeah, I read that. I was referring to the previous stipulation. That’s why the deal fell through.
Dorothy_Mantooth
Sounds like something Bloomberg should look into. He still has billions and will get a return on this investment.
Dom2
Mini Mike wasted nearly 20% of what they are asking on nothing so why not.
gbs42
Interesting choice of nickname.
TeddyBallgameYazJimEd
Also known as Farmer Mike.
Freddie Morales
Anyone except Dolan will be a better owner than the Wilpons
rct
lmao
EasternLeagueVeteran
Dolan has the coronavirus, and i don’t mean an aversion to Queens. Doubt he’s considering any thing else other than estate planning if he hadn’t done it already.
EasternLeagueVeteran
Seriously, though, prayers for the Dolan family
agentx
Why not just ask for $26 billion?
nymetsking
and to maintain control for 25 years.
bobtillman
Pluses for the sale: You’re never going to be able to “buy money” as cheap as you can now, considering the effective 0% interest rate…
Minuses: The Golden Age of franchise valuation leaps and bounds are over; franchises will continue to appreciate, but at nowhere near the rate they have.
Bloomberg wouldn’t be a popular owner; you’d only to be able to buy 12 oz. sodas.
OTOH, you’d win the World Series 3 times every 5 years.
YankeesBleacherCreature
IIRC Bloomberg, the company, got involved in sports analysis for a short time but quickly sold the asset. I don’t think it’s his/their thing tbh. We’re going to be in a recession if not already so valuations in every industry across the board will flatline for a while.
jbigz12
Pretty much on the money with the trade offs here, Bob
seaver41
Too bad Seinfeld already declined
rycm131
It’s a bad market now because of CoronaVirus aka Covid19
Robertowannabe
I don’t know why but for a very brief moment I thought that the headline meant the Mets were still pursuing Chris Sale…….Wondered why they were trying to corner the market on star pitchers having TJ surgery. At least I gave myself a good laugh even for a moment. 🙂
prov356
That’s how I read it at first too. I was scratching my head.
phillyballers
Red Sox are also pursuing Sale efforts.
throwinched10
Good luck with that. The global economy is going to be in shambles after this is all done. Nobody in their right mind would buy a sports franchise right now.
prov356
We’re talking baseball and Seinfeld, not promoting hysteria.
throwinched10
Not promoting hysteria. Just being logical.
averagejoe15
Billionaires aren’t worried about a recession. Sure they take a near term hit to their net worth, but investments such as those in sports franchises are what brings that figure back up.
Getting low prices on typically high performing assets doesn’t hurt either.
JoeBrady
I agree. While acknowledging that anything can explode at any time, I read that billionaires were scooping up shares of their favorite stocks at a 20%+ discount.
JoeBrady
The best time to buy anything is when times are rough and cash is king.
PiratesFan1981
I can understand them wanting to sell the franchise, but they had a deal and tried to change the deal before it was finalized. A good business transaction and professionalism in a sale is what drives buyers to buy the product. What the Mets did with the previous buyer, was bad business. I don’t blame people backing away from buying that team because of the poor business transaction prior. It was disgusting to see them trying to change the original deal before it was finalized. They were basically trying to cheat the new owner out of his team. Poor decision making and the high demand of money is going to keep potential buyers away. The Mets shot themselves in the foot on this one
whynot 2
Read up on what actually went on, you have your facts crossed
User 589131137
What did he say that was wrong?
averagejoe15
Everything he said was wrong.
nypost.com/2020/02/07/steve-cohen-could-be-blocked…
Cohen tried to change the deal because he didn’t understand the rules related to a team’s control person.
Cohen just got out front of the deal collapse and made the first statement so that’s all people heard.
Also Cohen’s background is shady as heck and it’s probably best if he does not become a majority owner.
Bill
It was a crappy deal for him not to have control and he was smart to get out of it. No one wants Jeff to be involved with the team for 5 DAYS longer than necessary, never mind 5 YEARS.
whynot 2
That may have been the case but yet he had initially agreed to those terms then backed out
jorge78
Why would a BILLIONAIRE, a “master of the universe”, agree to keep hands off for five years!!?? This is a guy who amassed a fortune letting these schmucks pull down his ankle breeches? Weird?
rct
“The team is now offering an arrangement with no strings attached.”
I’ll believe it when I see it. If this were true, why wouldn’t they just do this when they already had a willing buyer and a deal in place with Cohen? In reality, they either won’t find another buyer, or they’ll get one lined up and once again pull some 11th hour chicanery like Little Jeffy gets to stay on as Assistant to the Traveling Secretary (at a salary of $100MM/year) and the deal will fall through.
Phanatic 2022
Something was said about Cohen only paying a small % now with the vast majority being deferred
r2dak22
Arod might be interested…
jimmertee
Anyone willing to pay 2.6B for a baseball franchise needs needs their head examined. The economy isn’t finished contracting yet and when it does it won’t be pretty.
averagejoe15
MLB has largely been recession proof to date and that really shouldn’t be expected to change in the near term.
Even the great recession in 2009 didn’t hamper team valuation growth.
We’re probably past the peak of team valuation growth, but those values are going to continue to climb recession or not.
JackStrawb
Valuations will be fine. They weren’t damaged by the 2009 crash, after all.
In addition, infrastructure won’t be going anywhere. Everything required to profit enormously off of baseball will still be in place.
The corporate state’s effort to turn us into a nation of the very rich, the lower middle class, and the poor, hasn’t hurt the game’s revenue any–all it meant was more luxury boxes and cable revenue. The Mets shrank their stadium by something like 6,000 and only made more money. They’ll just do it again.
billy3xchamp
What about Mattingly’s swing?
Theghostoftycobb
Only the wilpons are less likeable than Corona.
nymetsking
They’ve infected millions, with no relief in sight.
EasternLeagueVeteran
Nobody squeezed a lime into them, yet. Worth a try. Bottoms up!( for the lime, that is).
Gwynning's Anal Lover
The Mets shouldn’t pursue Sale since he just had Tommy John surgery.
Buckner
My understanding was Cohen’s offer ($2.6 billion) included SNY. SNY generates cash flow, but the team lost $50 million on the field. Now the Wilpons are trying to sell ONLY the team for $2.6 billion. They are pandering to the crowd by saying they’re seeking a deal with “no strings” – no one in their right mind would accept that deal (they will likely never get that price). And the Wilpons will be still be meddling since they would continue to control SNY in that case.
jbigz12
I do not believe that the NY Mets operated at a 50 million dollar loss last year. That seems completely ludicrous given their payroll obligations.
Buckner
Check it out, this was on 2/13/20, about six weeks ago: “The team, on the other hand, now has the eighth highest payroll in baseball, according to Spotrac, which tracks player contracts in major sports. The Mets lost more than $50 million last season, according to people familiar with the team’s finances, largely because of declining attendance and about $50 million in annual payments on bonds used to finance the construction of Citi Field.”
nytimes.com/2020/02/13/sports/baseball/Mets-Wilpon…
JackStrawb
Agreed. It’s inconceivable. The only way to “lose” money on a NY baseball franchise is buy shuffling around the revenue streams to make it look that way–for tax purposes or to avoid having a balloon payment called in; that kind of thing.
SalaryCapMyth
The Wilpons really blew it with Cohen. The ONLY reason I am hopeful this goes through is for the sake of Mets fans. I would like for them to have a better owner than the joke that is the Wilpons.
I’m even a Braves fan but the Mets have such a disadvantage by having an ownership like they do that when the Braves win the season series against the Mets, it’s about as satisfying as winning a fight against someone who had their hands tied behind their back.
JoeBrady
Just imagine holding up a multi-billion $ sale because you want the new owner to give your son a job? I’d be embarrassed if I was that kid. Just go back to college and get trained for a real job.
JackStrawb
That’s the kid who will go down in history as unable to open a champagne bottle on his own.
JackStrawb
The function of Mets ownership at this point is to figure out how to maximize sale price while scrodding the fans as much as possible.
It’s their legacy, after all.
fudd5150
The team will never succeed with Fredo Wilpon at the helm.