A Grand Slam of an Alternative Investment
Ever dream of owning a major league baseball team? Alternative investments – such as sports league franchise ownerships are not for the majority of us, but if you have $25 to $100 million to lay out, you may get your chance.
Opportunities to own major league franchises don’t come up too often. Most franchise owners start out with partnership type investments into one of the independent leagues. However, you may now have an opportunity to become a minority interest owner in the New York Mets.
Fred and Jeff Wilpon, owners of the New York Mets announced on January 28, 2011 that they are considering selling a minority, non-controlling interest in the team (not to include any part of of Citi field or the Sportsnet New York television company).
Forbes valued the team in April of 2010 at $858 million. If the Wilpon’s sell 20 percent of that, as they are considering, it would raise $170 million or so to help satisfy potential judgments against Wilpon’s company (Sterling Equities) related to Bernie Madoff.
They have hired Stephen D. Greenberg, Managing Director of Allen & Company to handle the sale. Greenberg, once a minor league player himself and son of Hall-of-Famer Hank Breenberg, has had long and successful involvements with sports related finances, businesses and law engagements.
In a Question/Answer transcript published by Andy McCullough of the Star/Ledger on NJ.com: Greenberg stated: “So the proposition we’re putting forward today is exactly the proposition that one might put forward if one were actually acquiring the team today. And you go to those minority investors, whether they have $25 million or $50 million or $100 million that they’re going to put in. And you offer them the same kind of limited-partnership interest that every other club owner is offering their limited partners when they make acquisitions today. “
Some individuals have already expressed interest, according to an article by Brian Baxter Former Manatt Phelps Managing Partner Advising Mets; Dodgers Divorce Bingham”. Long Island liquor king Martin Silver (owner of the Georgi Vodka brand) and Glacéau VitaminWater cofounder, Michael Repole, have both publicly stated that they want in.
So, if you are interested, and have the money, let your wishes be known – and Greenberg might just call on you.
Business Week lists Allen & Company corporate headquarters information as:
85 10th Avenue New York, New York 10011 United States Phone: 212-342-8700 Fax: 212-342-8899
Remember, we are not investment advisers, consult your adviser about your investment situation prior to making investment decisions.
Sources:
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“Wilpons open to selling minority stake in Mets” By Alden Gonzalez/MLB.com|01/28/11 4:49 PM EST http://mlb.mlb.com/news/article.jsp?ymd=20110128&content_id=16524366&vkey=news_mlb&c_id=mlb
- “The New York Week That Was (Buy The Mets Edition)” by Jeff Freier Feb 4, 2011 http://newyork.sbnation.com/new-york-mets/2011/2/4/1972992/the-new-york-week-that-was-andy-pettitte-fred-wilpon-mets-sale-mark-cuban-carmelo-anthony
- “Source: Mets’ Wilpons, Bud Selig meet” By Adam Rubin ESPNNewYork.com Feb 2, 2011 http://sports.espn.go.com/new-york/mlb/news/story?id=6080769
- “Former Manatt Phelps Managing Partner Advising Mets; Dodgers Divorce Bingham” Posted by Brian Baxter Jan 31, 2011 http://amlawdaily.typepad.com/amlawdaily/2011/01/mets-dodgers-1.html
- “Mets CEO Fred Wilpon: ‘We will remain the principal owners of the Mets” by Andy McCullough/The Star-Ledger Published: Friday, January 28, 2011 http://www.nj.com/mets/index.ssf/2011/01/mets_owner_fred_wilpon_we_will.html
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http://www.jackierobinson.org/about/SteveGreenberg.php
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Business Week http://investing.businessweek.com/research/stocks/private/person.asp?personId=698253&privcapId=4452674&previousCapId=35631&previousTitle=The%20Topps%20Company,%20Inc.
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