There are certain goods or goods that you buy and whose value is likely to lose value.
Whenever you drive a new car off the road, in most cases, it is much less valuable to be such an example. But when it comes to professional sports franchises in the four major sports, the arrow has been pointing up for over a decade.
Obviously not with the New York Mets franchise. Josh Kosman of the New York Post reported that the current majority owner of the Met, Fred Wilpon, is repurchasing a 1
Wilpon acquires the shares of the cable companies Comcast and Charter Communications, which had acquired their stake in the team in 2012. Wilpon sold the shares to raise cash to offset the large-scale losses suffered over the Bernie Madoff Ponzi plan over a decade ago. He sold 48 percent of the team in 12 lots worth $ 20 million each. As a result, the Mets valuation in 2012 was approximately $ 500 million.
Comcast and Charter Communications had been seeking to sell their stake in the team since the summer of last year. It finally found a willing buyer, but according to the terms of the agreement with the Mets, the majority property had the right to adjust the price and to acquire the shares. Fred Wilpon has exercised his right to do just that for a valuation that is well below expectations. Some call this a good deal, while others feel that the Mets are simply not worth the money Forbes and others put on it. While a rebate was expected for the new acquisition of the shares, the amount of the rebate surprised many financial observers.
Upon completion of the transaction, Wilpons' stake in the team will increase from 52 percent to approximately 68 percent.
The deal is reportedly a cash payment. If so, it could significantly affect the ability of the Mets to spend money in this and possibly future seasons. Although the Wilpons have apparently recovered from the Madoff plan, $ 180 million is still a large amount of cash. Since Major League Baseball has rules about how much debt a team can carry, it is interesting to see if this affects the players Jacob deGrom who is seeking an extension of his contract.
Of further interest is the role of current Met COO Jeff Wilpon. He was a big stumbling block in the deal, which had to be overcome because of his reputation for being "haunting and tight", the Post noted. With 180 million dollars less in the coffers remains to be seen how tight his fists are.
The Mets have not commented on the transaction, but Mets fans will certainly not. If players like deGrom and other well-earned add-ons receive and the Mets show flexibility in terms of payroll, this takeover will be nothing more than a hit on the radar. However, if it affects the product in the field and the Mets sell or trade valuable assets, this will further substantiate the disgusting reputation Wilpons has as the owner of New York's fanbase.