Friday, December 12, 2008

Wilpon Soon-to-be Holding a Tin Cup?

As many of My Summer Family's very close personal friends know, The Coop follows the markets for a living. I wish I could be as cool as some other bloggers, but hey, I'm comfortable with the lifestyle I lead.

Now big news on the market fronts today has to do with a hedge fund manager who lost $50 billion.

Yes, you read that right. Fifty BEEL-YUN dollars.

Now, normally I do not mix my professional life with my personal blogging, but this time I actually can. Know why? Guess who one of Bernard Madoff's client was?

I'll give you a hint: his first name is "Fred" and his last name begins with "W."

According to the Daily Deal, Freddo and Uncle Saul have been doing business with Madoff for quite some time. In other news, Sterling Equities has about $1 billion tied up in Madoff's funds. The extent of the losses to Wilpon & Co? Unknown at the moment.

Along with the controversial naming rights to the new stadium (Citi/Taxpayer Field), Wilpon has seemingly stepped into a big pile of doody.

But what does this mean to the team? Well, for one, it's a good thing that K-Rod and Putz were brought to the team before this hit the fan.

Another thing is that payroll may have to be cut significantly.

Or a better scenario would be that Sterling Equities would have to sell a portion of the Mets, my guess being about 20%. The Wilpons would keep majority interest and run the team, with a minority holder giving their stamp of approval. It might not be a bad thing, either, since we all know the Wilpons have questionable baseball acumen and should leave that business to someone else. Can anyone say - Nelson Doubleday, redux?

I don't know if it would change on the surface the day-to-day operations of the team, having a minority owner...but don't expect the likes of Derek Lowe, Jon Garland or AJ Burnett to come to the team. Or even Oliver Perez at this point.

Right now, the market has not hit baseball entirely. This seems to be the first case of this actually happening.


caryn said...

i just saw this come in on the wire and all i could think was, "oh great"

Julie/ said...

Get the heck out!

GaryG said...

I guess this means goodbye to Derek Lowe, and hello Jose Lima.

Ceetar said...

Now I _don't_ follow the market for my job, or really at all, so I may be nieve in asking this.

But technically aren't these two separate companies? Outside of Fred maybe wanting to turn a little more of a profit out of the Mets to recover losses elsewhere, shouldn't the team operate apart from his other investments? Why should one affect the other? Especially if he decides to get that money by selling a portion of the team.

Deb said...

Perhaps this is the silver lining in the economic cloud...Fred Wilpon having to sell at least a partial interest in the Mets. I've pretty much realized that as long as Freddie remains the Mets owner, not much will ever change, and that leaves a certain...enuui, shall we say, in my heart. But even the possibility of Freddie having to dump one measley percent of his interest in the Mets gets me all atwitter! lol

Rickey Henderson said...

Merry Christmas from Rickey!

Michael Leggett said...

Happy New Year, Coop:

Work has begun on taking out Upper Level in Shea Stadium. It should be a skeleton by Mid-Month;

According to a Transplanted Guy from Boston, "Sweet Caroline" was played at Shea Stadium in the '80s and '90s;

At the '69 World Series, the subject of that song, Caroline Kennedy, was with Mom, Jackie, at Game 5 of the '69 World Series at Shea Stadium;

Shea's almost gone. I wish that the Wilpons would go with them. Freddie used to get it but good from me, and Jeffy's gotten it but good from me.