Report: Mets, David Einhorn Redo Agreement; Ownership Reduced To 17 Percent
NEW YORK (WFAN) -- When the Mets and David Einhorn reached a $200 million minority ownership agreement in May, it was reported that the hedge funder would own one-third of the cash-strapped franchise.
But there's still no official deal. It was reported by the New York Post in July that lender JPMorgan Chase had been holding up the process, unhappy with the financial fine print.
Now, according to The Post, Einhorn and the Mets are on track to close the book on their negotiations by the end of August with a restructured half-loan, half-cash agreement.
Einhorn, under the new terms, would own 17 percent of the Mets and become a limited partner.
"All interests are now aligned," a source told the paper.
The catch? The Mets will reportedly have five years to pay back Einhorn in full. If they do, he'll still hold a 17 percent stake.
If the Mets' owners -- Fred Wilpon, his son Jeff and Saul Katz -- fail to repay Einhorn, he'll still have a chance to buy a majority of the franchise "for a token amount."
Forbes reported in June that if the Mets don't reimburse Einhorn, the hedge funder could up his ownership stake to 60 percent for the "strike price" of $1.
A source told The Post that with half of Einhorn's $200 million, the team will settle their $30 million credit with MLB and use $70 million to reduce their debt with lenders.
The remainder of the infusion will "fund operating losses, expected to be $60 million this year."
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