The Wilpons didn't lose as much money to Madoff as believed

Leave a comment

If you believe financial experts like Larry King, Mets owner Fred Wilpon and family lost as much as $700 million investing with former friend and current inmate Bernie Madoff.  That, however, may be a slight exaggeration:

A partnership connected to the baseball team — which had widely been rumored to have lost money investing with Bernard Madoff — actually gained a net $48 million from its dealings with the convicted swindler, according to a bankruptcy-court filing.

The filing, by the court-appointed trustee handling claims for Madoff victims, is the first documentation of how deeply invested Mets principal owner Fred Wilpon was with Mr. Madoff, a longtime friend.

The filing showed that the Mets Limited Partnership, which is connected with Sterling Equities Inc., owner of the Mets, deposited about $523 million into two accounts with Mr. Madoff — and withdrew about $571 million.

Now that doesn’t necessarily mean that the Wilpons made money.  Yes, it’s a net increase in the money in play, but (a) the Wilpons may have had his money with Madoff for many, many years; and (b) they may have believed, via Madoff’s fraud, that they were up way, way above that.  So in financial terms the Wilpons could have suffered a huge loss in terms of forgone, legitimate gains, and they may have been making financial decisions based on a radically different position than the one in which they actually found themselves to be once the fraud was discovered.  That’s not a $700 million loss, but it’s certainly not great either.

Sadly for Mets fans, however, the team’s competitive position remains just as dire as previously believed.

Angels ink Javy Guerra to minor league deal

Screenshot 2016-02-10 at 7.43.02 PM
Rich Pilling/Getty Images North America
Leave a comment

Mike DiGiovanna of the Los Angeles Times reports that the Angels have agreed to terms on a minor league contract with right-handed reliever Javy Guerra. The deal includes an invitation to major league spring training.

Guerra was suspended 50 games by Major League Baseball last July after testing positive for a drug of abuse. That suspension is now over, though Guerra is probably ticketed for the Angels’ Triple-A affiliate to begin the 2016 season.

The 30-year-old made just three major league appearances in 2015 for the White Sox before getting outrighted off Chicago’s 40-man roster. He does own a 2.87 ERA in 150 1/3 career innings, but it has come with bouts of inconsistency and unreliability.

Maybe he can get everything going in the right direction with Anaheim.

Braves sign reliever Carlos Torres

Screenshot 2016-02-10 at 7.00.22 PM
Rich Schultz/Getty Images North America
Leave a comment

As first reported by Bill Shanks of Fox Sports 1670, the Braves have signed right-handed reliever Carlos Torres to a minor league contract with an invitation to spring training.

Torres was waived by the Mets in January, somewhat surprisingly, and elected to become a free agent. The 33-year-old ultimately chose Atlanta, where he should have a good shot at an Opening Day roster out of spring training with the rapidly-rebuilding Braves.

Torres posted an ugly 4.68 ERA in 57 2/3 innings last season for the Mets, but he registered a gorgeous 3.06 ERA and 96 strikeouts across 97 innings in 2014.

If he gets off to a good start in 2016, he could become valuable trade bait.

Blue Jays will have a closer competition this spring

Screenshot 2016-02-10 at 6.22.24 PM
Tom Szczerbowski/Getty Images North America
3 Comments

Roberto Osuna became the youngest pitcher to ever play for the Blue Jays last season at age 20 and he rose to the challenge with a 2.58 ERA, 0.92 WHIP, and 75/16 K/BB ratio in 69 2/3 frames. Osuna eventually took over as Toronto’s closer, earning 20 regular-season saves and one in the American League Division Series — a five-out effort in Game 5 to close out the visiting Rangers.

But the Jays upgraded the back end of their bullpen this winter, acquiring Drew Storen from the Nationals in early January for speedy outfielder Ben Revere. Jesse Chavez was also brought to Toronto in a trade with the A’s.

Storen has more experience at closer than Osuna, and Storen struggled when the Nationals tried to put him in a setup role. Storen, in his final year of salary arbitration, also gets paid much more. He’s probably going to enter spring training as the favorite for the Jays’ ninth-inning gig, but there will be a competition …

Blue Jays general manager Ross Atkins told Ben Nicholson-Smith of Sportsnet.ca on Wednesday that he doesn’t expect the team to choose between Osuna or Storen until midway through spring training, if not later.

There’s been talk of making Osuna a starter, so add that wrinkle.

Storen, 28, boasts 95 career major league saves.

Orioles plotting late-offseason push? Gallardo, Fowler, Alvarez, Bruce in consideration

orioles logo
6 Comments

Baltimore’s front office appears to be lining up a run of potential roster additions leading into the beginning of spring training.

We’ve already passed along the reports suggesting they are close to a three-year deal with free agent starter Yovani Gallardo, but now FOX Sports’ Ken Rosenthal adds that free agent outfielder Dexter Fowler could be next on the Orioles’ target list. It they get those two deals done, the O’s could then chase free agent slugger Pedro Alvarez.

Rosenthal says the Orioles are even eyeing Jay Bruce of the Reds, though the FOX reporter hears the O’s might not have the prospects to pull off that kind of trade.

The focus for the Orioles out of the gate this winter was re-signing Matt Wieters and Chris Davis. Wieters accepted his one-year, $15.8 million qualifying offer in November and Davis was locked up to a seven-year, $161 million contract in mid-January.

Now the O’s are spending a little leftover cash on late-offseason additions to improve their position in what should be a tight 2016 American League East race.