Mets Futility Could Help Einhorn


Adam Rubin wrote an interesting article (linked below) on ESPN New York about David Einhorn and how he could benefit greatly from Fred Wilpon’s financial crisis. In short, Rubin wrote that Einhorn has made a living off of betting on losers. In this case, Einhorn would benefit from Fred Wilpon taking a major blow in his billion dollar lawsuit as well as from the team continuing to struggle on the field and at the ticket office. In other words, the more the team loses, the more Wilpon loses. The more Wilpon loses, the more Einhorn wins.

Three years from now, Wilpon will have the option to accept or reject Einhorn’s increase in team ownership from what it is now to 60%. However, if Wilpon elects to reject that increase, Einhorn would still retain his minority share of the team and have all of his money refunded to him. In effect, this means the worst case scenario for him is that he is currently paying a loan to get minority ownership.┬áBest case scenario is he is the majority owner in three years.

As awkward of a relationship as it might create between the two, Einhorn benefits from Wilpon’s financial struggle. It’s hard to imagine with the team losing and Fred Wilpon seemingly in desperation that three years from now things will have made a turn for the better so much so that he can hold onto the team. From appearances alone, it seems that he is on his way out.

Therefore, if I had to guess, Einhorn will be the majority owner some time around 2014.

Here is a link to Rubin’s article, which has additional quotes from David and some more insight.

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One Response to “Mets Futility Could Help Einhorn”

  1. Jason Says:

    Einhorn’s deal is pretty sweet if you are looking at things from his perceptive. I just wonder what his motives are. Is he in it for the long haul or is he looking to turn a profit on this investment?

    He does seem to be quite the opportunist. Take away a few dozen zeroes and it strikes me as quite the “one man’s trash is another man’s treasure” scenario.

    Clearly Wilpon is just trying to hang on. The most depressing thing about this is the fact that we may have to wait until 2014 until it is all resolved.

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