There are certain goods or commodities that are being bought that are expected to lose their value.
The moment you drive a new car out of the plot, it's worth, in most cases, considerably less, as one example. But when it comes to professional sports franchises in the four main sports, the arrow is pointing up, upward, for over a decade.
Obviously, it's not like the New York Metz franchise. As Josh Cosman reports from Met's current owner, Fred Willon, buys a 1
Wilpon buys a stake in the cable companies Comcast and Charter Communications, which have bought their share of the team in 2012. Wilpon sold the shares to raise money to offset the big losses suffered by Bernie Madoff's Ponzi scheme before more than a decade. He sold 48% of the team in 12 lots worth 20 million dollars. That put Mets' assessment in 2012 at around $ 500 million.
Comcast and Charter Communications are looking to sell their share of the team last summer. He has finally found a willing buyer, but under the terms of his deal with Mets, majority ownership has the right to match the price and acquire the shares. Fred Wilpon exercised his right to do just that, much lower than expected. Some may call this a good deal, while others will feel that Metz is simply not worth the money that Forbes and others have put on it. While a rebate was expected to re-buy the stock, the amount of the discount surprised many financial observers.
When the deal is over, the Wilpons owner's stake in the team will increase from 52% to about 68%, according to
According to the deal, the deal is cash. If this is the case, it can significantly reduce Mets' ability to spend money during this, and perhaps in future, seasons. Although Wilpons has apparently recovered from Madoff's scheme, $ 180 million is still a large sum of money, and since the Major League Baseball has rules on how much debt a team can bear, it will be interesting to see if that affects players like [JacobdeGrom who is looking for an extension of his contract.
From further interest is the role of the current CEO of Jeff Wilpon. He was a big stumbling block in the deal that had to be overcome because of his reputation for being "intrusive and tight," the Post said. With $ 180 million less in the treasury, it remains to be seen how tighter his fists will be.
The Mets did not comment on the deal, but undoubtedly the Mets fans. If players like deGrom and others get deserved extensions and Mets show wage flexibility, then this acquisition will be nothing but a radar episode. But if that affects the product in the field and Mets sells or trades valuable assets, it will further add Wilton's disgusting reputation as owners with New York fans.