Einhorn pushing MLB for speedy approval
Hedge fund titan David Einhorn wants a clear path to becoming principal owner of the Mets and is pushing Major League Baseball to pre-approve him as an owner of the franchise, even though it will be five years before he has a shot at majority ownership, the New York Post reported Thursday, citing sources.
The sources said Einhorn, who is hammering out a deal to become a Mets minority owner, is seeking to protect his $200 million investment in the event that Mets owners Fred Wilpon and Saul Katz are forced to relinquish ownership.
Einhorn’s request for majority approval has become one of the key sticking points in negotiations that could drag on until November, sources said.
The Mets had expected to reach a deal with Einhorn by July.
Einhorn’s unusual request is a way to protect the 43-year-old and make it easier for him to take control if the Mets cannot repay him, one source said.
As it stands, Einhorn’s proposed $200 million investment — structured as a loan and an equity investment — would give him a 17 percent stake in the money-losing sports franchise in return for getting repaid the full amount in five years.
However, if Einhorn is not repaid, he has the option of acquiring a controlling stake at a nominal price.
Typically, investors aiming to gain a majority stake in a baseball team must gain approval of three-quarters of baseball owners.
Sources said Einhorn has been told that his request is “unprecedented.”
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