The saga of the New York Mets sale has captivated baseball fans and investors alike. After a lengthy and convoluted process, it seems that the Mets are finally on track to be sold to hedge fund billionaire Steve Cohen. Initially, Cohen was ready to make a deal last year, but that transaction fell through. As the year progressed, new contenders emerged, including notable figures like Alex Rodriguez and Jennifer Lopez, who made serious attempts to acquire the team. However, in a surprising turn of events, Cohen has once again become the frontrunner.
The sale values the Mets at a staggering $2.475 billion, setting a record as the highest valuation for a U.S. sports franchise. This surpasses the previous record held by the Brooklyn Nets, which sold for $2.35 billion in 2019. Cohen, a lifelong Mets fan, will now own a whopping 95 percent of the team, a significant increase from his previous eight percent stake. The former owners, the Wilpon and Katz families, will retain the remaining five percent, marking the end of an era for them.
In his acquisition, Cohen will pay slightly more than $2.35 billion for his 95 percent stake. Interestingly, in the deal that initially fell apart, he was set to acquire an 80 percent stake at a valuation of $2.6 billion. This means that Cohen is willing to spend approximately $270 million more for an additional 15 percent ownership of the team. With Cohen at the helm, the Mets are poised for a new chapter, and fans are eager to see what changes he will bring to the franchise.
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Fred Wilpon and team president Saul Katz, both in their early 80s, are selling the team as part of their estate planning. Wilpon has been involved with the Mets since 1980 and split ownership in 1986 with Nelson Doubleday Jr. After buying out Doubleday in 2002, he appointed his son Jeff as chief operating officer. Unfortunately, the Mets have struggled in recent years, making the playoffs only three times in the last 18 years, navigating through multiple managers and general managers.
Cohen inherits a franchise that has faced financial challenges, with typical losses around $90 million in a regular season. This year, the impact of the coronavirus pandemic is expected to push losses beyond $200 million. Despite the hurdles, the excitement among Mets fans is palpable, as not many people get the opportunity to own a team they have supported for decades. Cohen's persistence in making this dream a reality is commendable and sets the stage for a thrilling future for the New York Mets.
