I previously wrote about the trend of hedge fund managers purchasing professional sports teams. Since then David Einhorn of Greenlight Capital has purchased a 1/3 stake in the New York Mets.
The progression of the headlines reminded me of the sale part of the Pittsburgh Steelers to David Tepper. The press had picked Steve Cohen of SAC as a favorite to buy a stake in the Mets, only to have Einhorn surprise everyone. In much the same way, the press had picked up the story of Stanley Druckenmiller of Duquesne Capital to purchase partial ownership of the Steelers. However, Tepper ended up with the ownership.
Below is an excerpt from a New York Times article discussing Einhorn's deal, and how he once considered bidding for the Milwaukee Brewers.
Einhorn emerged last month as the last suitor standing. He agreed, pending a signed contract, to pay $200 million for a third of the money-losing team, according to people with knowledge of the deal. He will have an option to buy a majority stake in several years.
If the Wilpons try to block his attempt to buy control of the team, they must return the $200 million to Einhorn, who can then keep a minority share of the Mets.
Einhorn, a Cornell graduate whose trademark is a willingness to take unconventional and contentious public stances, impressed many sports bankers and colleagues with his offer’s creativity.
“I’m sure other people are saying, ‘What, I would have done that deal,’ ” said Karen L. Finerman, the hedge fund manager who was a co-founder of Metropolitan Capital Advisors, who is a friend of Einhorn’s.
This is the personal blog of Emory Redd.
This blog is not investment advice. This is not a solicitation to invest. Don't take candy from strangers.
BEST OF HEDGEROLL
ACHILLION AND RA CAPITAL: MY FAVORITE TRADE
SALIX INVESTORS LOOKING FOR A BUYOUT SHOULD BE CAUTIOUS; MORE ACCOUNTING PROBLEMS AHEAD
BIOTECH AS BUFFETT'S WONDERFUL BUSINESS