Einhorn Deal Could Allow Majority Stake in Mets

The Wall Street Journal reports that David Einhorn's $200 million agreement with the New York Mets to buy a minority stake in the team is essentially a loan that, after three years, could allow the hedge-fund titan to acquire a controlling interest in the team, a person involved with the sales process said.

Under the terms of the deal, Mr. Einhorn, the president and co-founder of Greenlight Capital, would receive 33% of the team for $200 million. Because the team is carrying about $425 million in debt, the value of the team is roughly $1 billion, according to the person. In three years, Mr. Einhorn would have the right to acquire an additional 27% of the team based on the $1 billion valuation, a move that would make him the team's majority owner.

Mets owner Fred Wilpon can turn down that offer, but if he does, he must pay Einhorn back his $200 million investment and allow him to keep his one-third share in the Mets. Under this scenario, Mr. Einhorn would earn the equivalent of more than $200 million in interest on a three-year loan of $200 million. Not too shabby, right, sportsfans?

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