Posted by Frank Klose
Courtesy basebalwiki.org
The New York Mets' money troubles are well-documented. The Mets tried to find a partner to buy into the franchise in David Einhorn, but the deal ended up falling through, probably because control of the Mets would almost assuredly fall into Einhorn's hands.
Now, for $20 million, one may buy a four percent share of the team. "Up to 12 Preferred Limited Partnership Units" will be sold.
The New York Times published this "strictly confidential" document outlining the investor benefits. They include:
- Membership in an "advisory board" of the club, with three meetings each year to "provide input with respect to club operations and significant strategic decisions. (Blogger's note: you get no real control)
- Really cool business cards that say "Owner". (Blogger's note: can't I just make these with some Avery business cards and an ink jet printer for $11.99?)
- One weekend at club hotel during Spring Training (Blogger's note: $999.00 retail value)
- Parking spot (Blogger's note: $20 x 81 = $1620.00)
- Private lunch with broadcasters (Blogger's note: if ONLY Tom McCarthy had stayed)
- Opportunity to attend a road trip with hotel on the road (but the club decides which)
- Opportunity to *purchase* All-Star tickets
- Opportunity to *purchase* postseason tickets
- Invitation to Mets holiday party
- Discounts to *purchase* MLB-Licensed merchandise
This one is my favorite:
- "Mr. Met made available for Owners at Citi Field events"
My personal analysis? This is about as valuable as membership to the Fightin' Phils Club, which costs $24.99 a year. I prefer that option to the $20 million Mets option.
Now, lets do some math.
$20 million a share times 12 shares: $240 million, and 48% of the club.
This would mean that the club is worth $540 million. If the owners really do have a 4% share, this amount appears very undervalued, for a big market such as New York, and when the Los Angeles Dodgers may be about to sell for around $1 billion. The team's debt must be substantial for the value to be that low.
This "partnership unit" is probably near worthless, but hey, if I had $20 million sitting around to blow, I might want to have a similiar share of the Phillies, just for the fun of it.
