Einhorn Says Mets Changed Deal's Terms At Last Minute

Sep 2 2011 | 10:02am ET

Greenlight Capital founder David Einhorn said that the blame for the collapse of his deal to buy a minority stake in the New York Mets lies squarely at the feet of the team's current owners.

On a conference call with reporters yesterday after news broke that Einhorn would not invest $200 million in the Mets, he accused Fred Wilpon and Saul Katz of reneging on several important tenets of their proposed deal.

While that proposal would have included a path for Einhorn to take a majority stake in the Mets if the Wilpons were unable to repay him his $200 million after a certain period, the hedge fund manager said he learned last week that the Mets were pushing to keep Einhorn from winning advanced approval to control the team. Einhorn said he had been told that approval would be forthcoming.

What's more, Einhorn said that the Mets reopened negotiations with one of the bidders they selected Einhorn over in May—believed to be former Glencore commodities chief Ray Bartoszek—despite their agreement to a written contract with Einhorn.

"I received a new round of comments on our definitive agreement," Einhorn said. "I was very surprised to see that many provisions of the deal, that were in place since May, had been changed. A week ago, I thought this deal was in great shape and would be done very soon."

Despite that unpleasantness, Einhorn called his three months as Mets-owner-in-waiting "a happy experience."

"This has been a very interesting summer for me," he said. "I've learned a lot."


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...