Mets Made Money with Madoff ?
According to an article posted today by The Wall Street Journal, the trustee recovering money on behalf of victims of Bernard Madoff’s fraud sued New York Mets principal owner Fred Wilpon and his real-estate investment firm, Sterling Equities Associates.
From the article:
Sterling Equities and its partners are among the so-called “net winners” whom Mr. Picard claims withdrew more than they originally invested with Mr. Madoff.
In a court filing last year, Mr. Picard alleged a partnership associated with the baseball team, Mets LP, gained a net $48 million through its investments with Mr. Madoff.
The partnership deposited about $523 million over the years with Mr. Madoff, a longtime friend of Mr. Wilpon’s, and withdrew about $571 million, Mr. Picard said at the time.
So while many rumors circulated that the Wilpons lost a significant amount of money as a result of the Madoff scam, the truth could be the opposite — if these allegations are proven.
Though, I imagine it’s possible that some of Sterling Equities’ assets may have been frozen as a result of the investigation. If there are any financial types out there who can provide some insight, please do so in the comments.
For what it’s worth, Sterling Equities has issued a statement:
“Regardless of the outcome of these discussions, we want to emphasize that the New York Mets will have all the necessary financial and operational resources to fully compete and win,” Sterling Equities said. “That is our commitment to our fans and to New York.”
The Mets’ payroll for players is already nearing $140M, so I don’t think this news significantly affects the current state of affairs; it’s not as though the team was looking to spend far beyond the current budget.