SBD/July 28, 2011/Franchises

Mets Near Completion Of Deal With Einhorn For Minority Stake In Team

Sources say only paperwork remains on Mets' sale of minority stake
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).
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