SBD/July 28, 2011/FranchisesPrint All
The Mets' deal to sell a minority stake in the team to hedge fund manager David Einhorn is "finished except for completing the deal's paperwork," according to a source cited by Richard Sandomir of the N.Y. TIMES. The Mets announced the deal in May, but progress "was slowed by Einhorn's dealings with the banks that have lent the team more than $400 million." The source said that those lenders are "now satisfied with the transaction's terms." Einhorn will pay $200M for his minority share, of which half is "earmarked for team operations, $75 million is to pay off bank debt and $25 million is to repay a loan from Major League Baseball that was due last month." While details of the deal have not been made public, sources said that Einhorn "would get a third of the Mets for $200 million and a pathway to majority ownership within about five years." He is "believed to have an option to buy up to 60 percent of the team." Mets Owners Fred Wilpon and Saul Katz "can reject Einhorn's bid, but would have to repay his $200 million and let him remain a minority owner" (N.Y. TIMES, 7/28).
While rumors among some employees of the Hartford Colonials "were spreading Wednesday morning that the UFL team was folding, league officials say nothing is decided," according to Paul Doyle of the HARTFORD COURANT. A league source said that the UFL "is considering several scenarios to cut costs, including the reduction from five to four teams." One possibility "would have the Colonials folding and owner William Mayer taking over the Virginia franchise and another has Virginia suspending operations." Colonials GM & coach Jerry Glanville said, "All I know is we want to save this thing. The league, the team ... all of the above." Glanville added he should "know more next week." UFL Commissioner Michael Huyghue said that rumors "have been floating because the league is considering many scenarios." Huyghue: "The pundits are all making large [guesstimates] as to what will happen. The only thing that's happened is, we've pushed the season back 30 days. ... We haven't made any decisions about what we are doing, whether we are adding teams, reducing teams, decreasing the season. All of that's being decided. Our expectation is to move forward August 15" (HARTFORD COURANT, 7/28).