Einhorn first had hinted about his interest in the Mets at a hedge-fund conference this week, shouting "Let's Go Mets!" at the end of his presentation at the Ira Sohn Investment Conference in Manhattan. At the same conference, the outspoken hedge-fund-managing Mets fan also had , whom he referred to as "the biggest overhang on Microsoft's stock."
"Ballmer is stuck in the past," Einhorn told his audience suggesting that Ballmer step down. Ballmer "is at best a caretaker at Microsoft."
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But in terms of his thoughts about the financially and athletically struggling Mets organization, Einhorn emerges as a potential angel, and perhaps savior.
notes that the 42-year-old Einhorn wouldn't be involved in operating the money-losing franchise, but rather would be a "preferred partner." Einhorn additionally confirmed in an e-mail interview with Bloomberg News that he is negotiating to buy part of the club.
The Mets' said a final agreement is expected by late June, and that MLB would have to approve any sale. "David's investment immediately improves the franchise's financial position," Fred Wilpon, the Mets' chairman and chief executive officer, said. "Equally important, David's intelligence, integrity and success in both business and civic affairs provides us with another perspective in evaluating what is best for this organization and our fans, and we welcome his input."
New York-based Greenlight Capital manages $7.8 billion in assets. "Having an opportunity to become part of the Mets franchise is exciting beyond my wildest childhood dreams," Einhorn said in the news release, adding that his desires to be part of the Mets went back to when he dressed up in a Mets' jersey for Halloween 35 years ago. "I look forward to partnering with the Wilpon and Katz families through the good seasons, the tough seasons and especially the championship seasons."
As the Mets try to sort out their own overhang from the Madoff fraud, they still carry $427 million in debt, and could lose as much as $70 million this year, Wilpon was quoted as saying to Sports Illustrated in a story this month.
In liquidating Madoff's business, trustee Irving Picard seeks recovery of $295 million in alleged phony profits made by Sterling Equities Inc., the team ownership group that Wilpon and Mets co-owner Saul Katz set up. Picard also seeks as much as $700 million in principal. Wilpon and Katz have said they were duped by Madoff.
Wilpon said in January that the Mets had hired Steve Greenberg, a managing director at Allen & Co., to seek investors for 25%, and the owners later said they would sell up to 49%.
In the Sports Illustrated story, 36 candidates were reported to have sought information about a possible stake, and that the list recently was narrowed to four finalists.
In terms of attendance, the Mets also have struggled, bringing fewer fans to the three-year-old Citi Field, which was built for $800 million three years ago. The Mets also have been shut out of a playoff berth since 2006, seen locally as a particular embarrassment because the combined Mets payroll is $537 million, topped only by that of the New York Yankees and Boston Red Sox.
The Mets averaged 38,941 fans a game in the inaugural 2009 Citi Field season, but last year the average at 41,800-seat park was 32,401, seventh best among MLB's 30 clubs. This year, it is drawing an average of 28,565 per game, and is mired deep in the National League East standings, with a 23-25 record. The team also announced last November that it was dropping ticket prices for 2011 by an average of 14%.
In yet another embarrassing flap, Wilpon was quoted in a New Yorker magazine story this week as criticizing his three All-Star players: third baseman David Wright, outfielder Carlos Beltran and shortstop Jose Reyes. He later apologized.
Wilpon and Katz paid $391 million for the Mets nine years ago, and it is now valued by Forbes magazine at $747 million. Still, that's off 13% from the prior-year's Forbes valuation.