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View Full Version : Mets Settle Madoff Lawsuit for $162M



redsmetz
03-19-2012, 11:42 AM
Reports are that the Mets have settled the lawsuit they have been involved in with the bankruptcy case of Bernie Madoff for $162 Million.

http://www.nytimes.com/2012/03/20/sports/baseball/mets-owners-pay-162-million-to-settle-madoff-suit.html?_r=1&hp

Sea Ray
03-19-2012, 11:59 AM
I have a "meh" reaction. Sounds like very little money will change hands on this, thus there will be little effect on the Mets baseball team. I never thought they'd have to pay out anywhere near a billion like the lawsuit requested.

oneupper
03-19-2012, 12:01 PM
This is a win for Wilpon/Katz. It could have been much worse, but previous rulings limited the amounts the trustee could claw back to the only a couple of years of "false profits".

bucksfan2
03-19-2012, 12:31 PM
$162M that they thought was theirs free and clear. I have read storeis about how they used Madoff as their personal banking account, collecting those gains year after year and making deals based upon those yearly gains. It may be insubstantial to the Wilpons/Katz but that is a heck of a lot of money.


Despite the settlement, the Mets are still under a financial strain. They lost $121 million the last two seasons; slashed their payroll by $50 million — the largest one-season cut in baseball history — and were unable to pay to keep their best player, shortstop Jose Reyes. The team borrowed $25 million from Major League Baseball in late 2010, which is past due, and another $40 million from Bank of America last fall, and owes about $400 million more to a group of banks.

If Selig though the same about Wilpon as he did the McCourts in LA the Mets would be on the market. They are going to need an infusion of cash, and someone to step up who wants a real ownership share, not an odd one that some investment banker backed out of within the past 6 months.

bucksfan2
03-19-2012, 12:31 PM
dp

LoganBuck
03-19-2012, 01:07 PM
Someone put on Twitter

Mets give Madoff Plaintiffs $162M, Madoff Plaintiffs undergo Tommy John surgery.

Sea Ray
03-19-2012, 02:56 PM
$162M that they thought was theirs free and clear. I have read storeis about how they used Madoff as their personal banking account, collecting those gains year after year and making deals based upon those yearly gains. It may be insubstantial to the Wilpons/Katz but that is a heck of a lot of money.



If Selig though the same about Wilpon as he did the McCourts in LA the Mets would be on the market. They are going to need an infusion of cash, and someone to step up who wants a real ownership share, not an odd one that some investment banker backed out of within the past 6 months.

If I understand this correctly, they're on both sides of this. They have to "give back" $162 million but they are also in line to be beneficiaries of all the money these trustees can recoup from Madoff's clients thus in the end they'll have very little if anything to pay back. In other words, they got some money paid back to them but they lost a lot more like most of Madoff's clients did. They one of the beneficiaries of the $162mill:


Wilpon and Katz, and their families and businesses, will not have to pay much money, if any, out of pocket. Instead, they will now be eligible to receive up to $178 million from the billions of dollars that the trustee collects from the net winners.

If they get the full recovery within three years, $162 million of it will go to the trustee; if not, Wilpon and Katz are responsible to pay the rest over the fourth and fifth years.

redsmetz
03-21-2012, 04:45 PM
NY Times baseball blog on the Mets' settlement and it's impact on the club's financial situation:

http://bats.blogs.nytimes.com/2012/03/20/alderson-says-settlement-wont-change-much-right-away/