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Photo: Steve Marcus
The sale of the New York Mets has been a wild race, but one that is nearing its finish line as we are less than two weeks away from submitting final offers at the end of the month.
All reports describe the auction as a two-man race between hedge fund billionaire Steve Cohen and former player Alex Rodriguez, but no one can agree on the true favorite between the two.
Due to his immense wealth, Cohen was named a favorite in an Athletic’s article Daniel Kaplan, but that doesn’t mean he’s necessarily a slam dunk choice in the eyes of Major League Baseball.
One of Kaplan’s sources suggests that the Mets sale is reminiscent of a ‘bad electoral choice’, where there is a lot of contention over who is the best candidate, with both parties drawing anger over their past doubtful.
Cohen is a savvy investor who has made his fortune with his various hedge funds, the latest being Point72 Asset Management. Although he has been very successful in his field, there is a moral issue to consider with Cohen, as his former fund SAC Capital pleaded guilty to insider trading in 2013 and was forced to pay a record fine of $ 1.8 billion.
According to Kaplan’s sources, MLB owners compared Cohen to Houston Astros owner Jim Crane, who is known for his reputation for bending the rules for personal gain. Some owners are concerned about the methods Cohen may use to earn, which can include a much larger investment in team payroll than anyone in the past.
The Mets’ other main contender comes with his own baggage, as Rodriguez had a tumultuous end to his playing career. Between his various steroid suspensions and his guilt denial in these cases, Rodriguez has been battling the variety club he so desperately wants to join now. There was a level of forgiveness in allowing Rodriguez to step into the game as a broadcaster, but taking over a franchise as the owner is a whole different level.
Even with A-Rod’s history with baseball, a bigger concern in his buying the team is whether he has enough money to keep the Mets afloat. Derek Jeter’s purchase of the Marlins also isn’t seen as a resounding endorsement in this case, as Jeter was forced to cut payroll after winning a bidding war to land his franchise. MLB would be reluctant to let a similar scenario happen again, especially in a market like New York.
This is why all roads lead to Steve Cohen, whose wealth is more than ever welcome. The league has suffered a big financial blow as a result of the pandemic and is expected to swallow losses over the next few years before things return to normal.
The Mets have big debt payments for Citi Field next year, which is likely a reason the Wilpons are selling in the first place. Given that the team reportedly suffered annual losses prior to COVID, it’s hard to imagine what the franchise’s future losses will be for new owners. Especially when the team’s only cash cow, SNY, is not included in the sale.
A source for Kaplan’s report in Athletic said the following:
“Baseball is in a position today where the # 2 team in the biggest market is going to be sold. He loses, depending on who you talk to, $ 30 (million), $ 50 million a year (in a normal year). It does not include its broadcaster, the interest in its dissemination for at least eight or ten years. And you are in a post-COVID world with enormous financial uncertainty. These are the kinds of situations where you go with the guy with the biggest checkbook. “
Cohen is a longtime Mets fan who has been very motivated to land this team at all costs. Wilpons may not like the man after initial squad sale collapsed, but they are not able to refuse their highest bidder.
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