Einhorn-Mets Deal Falls Through

David Einhorn, president of Greenlight Capital.

Image: Jeff Mermelstein

First, David Einhorn was going to be a minority owner of the New York Mets. But now, the hedge fund founder who built Greenlight Capital management and criticized the ways of Wall Street along the way, is out of the Mets ownership picture, the team announced today.

“After months of negotiations, the parties were unable to reach agreement, and the Mets ownership has decided to explore other options,” the franchise said in a statement.

Today's development comes after a May announcement that Einhorn was buying a minority, nonoperating, stake in the team for $200 million. He was stepping in financially because the team needed resources, in part, to pay back a loan from Major League Baseball.

The team's owners, Fred Wilpon and Saul Katz, are currently fighting off a lawsuit filed against them by Irving Picard, the trustee for victims of Bernie Madoff's Ponzi scheme. The $1 billion suit has been a heavy financial burden on the team, and the Mets franchise is projected to lose $70 million this season, according to the New York Times.

Still, that wasn't motivation enough to hammer out a deal with Einhorn, and negotiators say they don't feel undue financial pressure to court another investor at this time. Looks like he'll just have to keep criticizing plays from the sidelines for now—just like the rest of us.

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