Wilpon Loses Millions In Madoff Fraud Case, Could Impact Mets
 |
Could Losses Force Wilpon
To Sell Portion Of Mets? |
Mets Owner Fred Wilpon and former NASDAQ Chair Bernard Madoff, who was arrested last week for securities fraud, have had a "close personal and financial relationship for more than two decades, and Wilpon entrusted Madoff with hundreds of millions of dollars to invest," according to sources cited by Michael Schmidt of the N.Y. TIMES. MLB President & COO Bob DuPuy said that he and MLB Commissioner Bud Selig Friday spoke with Wilpon and that "all three believed that the fraud case would have no effect on the Mets' operation." DuPuy: "We all believe that this will not affect the team." However, several sources indicated that there is "concern about significant problems that Wilpon and the Mets could encounter" as a result of Madoff's charges. While it is "unclear how much money Wilpon may recoup, any significant financial loss by a team owner raises questions about how those losses may affect the franchise." Wilpon invested his own money and that of his investment firm, Sterling Equities, with Madoff, and DuPuy noted that the Mets were a "separate entity from Sterling Equities and Wilpon's other investments." DuPuy: "The Mets are completely self-sufficient." Wilpon in '02 became Mets Majority Owner when he acquired former Mets co-Owner Nelson Doubleday's share of the team, and the "losses that Wilpon has sustained as a result of the Madoff fraud case could hamper his ability to pay back debt to that buyout." Schmidt noted perhaps the "most troubling is the possibility that losses incurred by Sterling Equities could put pressure on Wilpon to raise money by selling other assets," which could include a "portion of his ownership in the Mets" (N.Y. TIMES, 12/14).
DRIVING ME MAD: CNBC's David Faber reported that Wilpon and Mets investor Saul Katz, through Sterling Equities, "could have lost as much" as $300M with Madoff (CNBC.com, 12/12). Sterling Equities and the Wilpon family Friday acknowledged that they "had money at risk in the Madoff scandal." Sterling Equities spokesperson Richard Auletta: "We are shocked by recent events and, like all investors, will continue to monitor the situation." The Mets in a statement said that the scandal "would not derail its new Citi Field stadium project ... or 'affect the day-to-day operations and long-term plans of the Mets organization.'" In addition, former Eagles Owner Norman Braman confirmed that he also had "money locked up and perhaps lost in the Madoff mess" (N.Y. TIMES, 12/13). The AP's Hays, Neumeister & Caruso reported Madoff in regulatory filings revealed that he had 23 clients, but the "list of people who lost money may number in the hundreds or even thousands" (AP, 12/14). The WALL STREET JOURNAL's Frank, Lattman, Searcey & Lucchetti cited sources who said that Wilpon "often raved about Mr. Madoff's investment prowess and invested tens of millions of dollars of both his own money and the team's with his company" (WALL STREET JOURNAL, 12/13).
STRIKE TWO? In N.Y., Kaja Whitehouse reported one of Wilpon's funds a few years ago "placed tens of millions of dollars" with Bayou Management, a hedge fund that "turned out to be a $450[M] fraud." While Wilpon's fund "didn't lose money from Bayou, as it got out several months before," the Bayou and Madoff investments "call into question the judgment of Wilpon, who may also take [losses] on his extensive real estate portfolio" (N.Y. POST, 12/14).
|
Related Stories By Company
|
Related Stories By Sport
|
Mets Gained $48M From Madoff Investments
October 21, 2009 :
SportsBusiness Daily
Wilpon Discusses Mets' Disappointing Season
October 6, 2009 :
SportsBusiness Daily
Mets Reduce Ticket Prices Due To Economy
October 2, 2009 :
SportsBusiness Daily
Sources Say Citi Field Has Water Damage
September 9, 2009 :
SportsBusiness Daily
Mets Insist Wilpon Won't Have To Sell Team
September 2, 2009 :
SportsBusiness Daily
|
Boras, Manfred Talk About Finances Escalate
November 20, 2009 :
SportsBusiness Daily
Selig: Concerns Around Economy Still Exist
November 20, 2009 :
SportsBusiness Daily
MasterCard Present At WS DVD Premiere
November 20, 2009 :
SportsBusiness Daily
Hicks Hopes To Remain Rangers Majority Owner
November 19, 2009 :
SportsBusiness Daily
Selig Committed To Condensing Playoffs
November 19, 2009 :
SportsBusiness Daily
|
|
