Mets Management Issues

The New York Mets are one of two Major League Baseball franchise which call the city of New York home. The Mets have traditional played the little brother role to the Yankees, their cross town rival. Things were looking up for Mets in 2006 as the team won its first NL East title and was a game away from making it to the World Series. Since then the team has been riddled with inconsistency, heartbreak, and the biggest financial scandal of all time.

New York Mets owner Fred Wilpon had a long lasting investment relationship with Bernie Madoff. When Madoff’s Ponzi scheme finally collapsed in December of 2008 Fred Wilpon, along with the entire Mets organization, was out nearly $700 million. The $700 million loss led to speculation about Wilpon selling the team. The Mets’ financial woes became a mocking point for many media entities, and sport reporters everywhere were quick to make a joke at the teams’ expense. In 2010 reports surfaced in regards to Wilpon’s relationship with Madoff and the fact that prior to the collapse of the Ponzi scheme, Madoff helped Wilpon make nearly $300 million in illegal investment activities, which Wilpon knew nothing about. Madoff had been a consultant for the organization and played a role in managing the deferred money in Met contracts. He had also been a contributor in financing the Mets television network, SportsNet New York, and the Mets new ballpark which opened in 2009, Citi Field.

Wilpon was named in another lawsuit in 2010 filed by Irving Pichad on behalf of the victims of Madoff’s Ponzi scheme. Because of Wilpon’s loss in the Madoff collapse and the pending lawsuit, Fred began searching for “strategic partners” to buy 20% - 25% of the organization in an attempt to offset possible lawsuit losses. In attempts to save Wilpon from selling the team the Mets received a $25 million loan from Major League Baseball as well as a $40 million loan from the Bank of America. Wilpon was able to successfully sell portions of the team to...