There are certain goods or goods that you buy that are expected to lose value.
minutes you run a new car of the party, it is worth, in most cases, significantly less, to be such an example. But when it comes to professional sports franchises in the four major sports, the arrow has pointed up, all the way up, for over a decade.
Apparently, not so with the New York Mets franchise. As reported by Josh Kosman of New York Post current Met Majority Owner acquires Fred Wilpon a 1
Wilpon buys the efforts of the cable companies Comcast and Charter Communications who bought their share of the team in 2012. Wilpon sold the shares to raise money to offset the big losses resulting from the Bernie Madoff Ponzi scheme ten years ago. He sold 48 percent of the team in 12 many worth $ 20 million each. That put Mets valuation in 2012 at around $ 500 million.
Comcast and Charter Communications had been looking to sell their share of the team since last summer. It eventually found a willing buyer, but according to the agreement with Mets, the majority owner had the right to match the price and buy the shares. Fred Wilpon exercised his right to do just that for a valuation significantly lower than expected. Some may call this a good business deal, while others will feel that Mets just isn't worth the money the Forbes and others have put on it. While a discount was expected for the repurchase of the shares, the amount of the discount surprised many financial observers.
When the transaction closes, Wilpon's stake in the team will rise from 52 percent to about 68 percent, according to the record.
The agreement is allegedly a cash transaction. If this is the case, this can significantly weaken Mets ability to spend money during this and perhaps future seasons. Although Wilpons have obviously recovered from the Madoff scheme, $ 180 million is still a huge amount of money, and since Major League Baseball has rules on how much a team can bear, it would be interesting to see if this affects players like Jacob deGrom seeking an extension of his contract.
Of further interest is the role of current Met COO Jeff Wilpon. He was a major obstacle in the deal that had to be overcome because of his reputation for being "meddlesom and tightfisted", noted the post. With $ 180 million less in the coupons, it's still seeing how much tighter the fist gets.
Mets has not commented on the transaction, but no doubt Mets fans will. If players like deGrom and others get deserved extensions, and Mets shows wage flexibility, this acquisition will be nothing more than a blip on the radar. But if it affects the product in the field and Mets sells or trades valuable assets, this will further puncture the illegal reputation Wilpons has as owners of the New York fan base.