Cohen reportedly took issue with the Wilpons making late-stage changes to the dealGETTY IMAGES
Steve Cohen is "ending negotiations with the Wilpons" on his $2.6B purchase of an 80% stake in the Mets because he is "deeply unhappy with the Wilpons changing the terms of the deal at a very late stage and has decided to walk away," according to sources cited by Thornton McEnery of the N.Y. POST. Until yesterday, it appeared the deal was "progressing quite well." Under the deal with Cohen, Mets Control Person & CEO Fred Wilpon and COO Jeff Wilpon would remain in their roles for five years. After that period -- or during -- it was "expected that both Wilpons would be removed from the daily operations of the team." The deal also reportedly did "not include ownership of the Mets' regional sports network, SNY." Sources said that the Wilpons "pushed late to maintain some control of the franchise beyond the five-year window." McEnery notes there also appeared to be some "disagreement over the long-term status of SNY." Initial reports "might have overstated the simplicity of the Wilpons retaining ownership of the network as a separate entity" (N.Y. POST, 2/5). On Long Island, Tim Healey notes this would be the "second time the Wilpons' near-sale of the Mets has fallen through late in the process." Hedge fund manager David Einhorn, in '11, was "close to buying a minority share of the team," with a path to becoming the majority owner, for $200M. But Einhorn said that the Wilpons "changed the terms of that deal" (NEWSDAY, 2/5).
MIGHT BE PART OF THE GAME: WFAN's Boomer Esaison noted fans "never know why a deal of this magnitude doesn’t go through.” CNBC's Guy Adami discussed Cohen’s possible strategy and said, "Stevie said, ‘You know what, I’m going to walk away. I’m going to piss off Mets fans to no end, and I’m going to force them into doing this because the public outcry is going to be such that they’re going to be forced to do something.’” Adami: “This is Trading 101.” Esiason: “This is how these negotiations go -- if one side is not happy and it’s out there that they are negotiating, there’s one quick way to change the way things happen. You let it out publicly in some way, shape or form, and now it’s all in the public forum for discussion like we’re all doing right now” ("Boomer & Gio," WFAN, 2/5).
TIME FOR PLAN B? CNBC's David Faber notes it is "unclear whether there's another potential buyer" for the Mets or whether the Wilpons have "received perhaps indications of a higher price" from someone else ("Squawk on the Street," CNBC, 2/5). In N.Y., Ken Davidoff writes since the Wilpons did "engage other potential buyers before they focused on Cohen," they could "turn back to a person or group of people from that list." On whether the Wilpons could just call off the sale talks and find other means of funding to stay afloat, Davidoff writes, "While we can't rule that out, a primary factor driving this sale is the family succession issue" (N.Y. POST, 2/5). Also in N.Y., Deesha Thosar writes it took "exactly two months for the Mets to Met-up the most joyful event for the fan base in years: The (clearly premature) announcement that the Wilpons were (close to) selling the team." Thosar: "For a normal team, this would be an unthinkable development, the most bizarre thing to happen in living memory. For the Mets, it's just the latest thing" (N.Y. DAILY NEWS, 2/5).
