Major League Baseball
Report: Einhorn has $1 clause to buy Mets
Major League Baseball

Report: Einhorn has $1 clause to buy Mets

Published Jun. 16, 2011 1:00 a.m. ET

Hedge fund honcho David Einhorn could gain control of the struggling New York Mets in three years' time for just $1, under an option in his agreement with team's ownership to buy a minority stake, according to a Forbes report.

Einhorn's agreement in principle with Fred Wilpon and Saul Katz, announced last month, was for the 42-year-old founder of the $8 billion Greenlight Capital hedge fund to buy a 33 percent stake in the Mets for $200 million.

It was reported at the time that Einhorn had an option to increase that stake after three years under certain conditions and for a particular price -- but the exact price was not released. A Forbes report Wednesday said the option price was $1.

The agreement was still being negotiated, and a final deal was not expected until later this month, so its terms could change.

ADVERTISEMENT

Einhorn would not be able to exercise the $1 option if Wilpon and Katz returned his $200 million investment in three years. If the hedge fund guru got his money back, his stake in the team would be reduced to 16 percent.

However, a Mets spokesman said the Forbes report was not accurate. "Like many other media reports related to the terms of a potential agreement, [this one] is again simply false," according to team spokesman David Newman, who declined to elaborate on what in the report was false.

A spokesman for Einhorn declined to comment.

Wilpon and Katz are hawking a piece of the team because they face a $1 billion lawsuit filed by Bernard Madoff trustee Irving Picard, who alleges that the owners "knew or should have known" that Madoff was perpetrating a massive Ponzi scheme.

Wilpon and Katz invested with Madoff over 25 years and claim they were victims, having lost hundreds of millions of dollars to the Ponzi scheme.

share


Get more from Major League Baseball Follow your favorites to get information about games, news and more