Fred Wilpon

The Mets and Madoff: “Bernie was part of the business plan for the Mets”

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Fred Wilpon has insisted since 2008 that the Bernie Madoff mess had little impact on the Mets’ baseball operations.  Even since last week, when it was announced that he would have to sell part of the team due to the Madoff losses, the sense has been that they are exclusively personal losses and that since the team is the Wilpons’ largest asset it was logical that he turn to the team for his capital needs.

There’s an article in today’s New York Times, however, which tells a far different story: Bernie Madoff and his investments were deeply involved in the Mets, and the Mets operations were highly dependent on Bernie Madoff:

When the Mets negotiated their larger contracts with star players — complex deals with signing bonuses and performance incentives — they sometimes adopted the strategy of placing deferred money owed the players with Mr. Madoff’s investment firm. They would have to pay the player, but the owners of the club would be able to make money for themselves in the meantime. There never seemed to be much doubt about that, according to several people with knowledge of the arrangements.

“Bernie was part of the business plan for the Mets,” a former employee of the club said … interviews with current and former associates of Mr. Wilpon and Mr. Katz, as well as former employees of the club, former employees of Mr. Madoff and others, make it clear that the relationship was substantial and that the role Mr. Madoff played in the financial life of the ball club and the Wilpon and Katz families was pervasive.

The more damning part of the article, however, involves the way that the Wilpons would steer friends and even Mets employees to Madoff investments.  Indeed, former Mets GM Frank Cashen says that his deferred compensation package after leaving the Mets was invested with Madoff.  He was paid before the bottom fell out, but he says that Wilpon and Madoff worked “in unison” he says that Wilpon and his partner Saul Katz worked “in unison” to push Mets employees to invest in Madoff securities. That famous Bobby Bonilla deferred money deal was also invested with Madoff.  Madoff also reportedly got many of his investors via introductions from Fred Wilpon, who the bankruptcy trustee suing him alleged knew or should have known that Madoff was a scam artist.

If what the many sources of this article say is true, the Wilpons are more than the victims they’ve made themselves out to be.  They were an important part of Madoff’s operation, whether they themselves knew the nature of the operation or whether they simply placed stupid blind faith in their close friend.

And there is no question that, by virtue of placing team-related investments with Madoff, the financial prospects of the Mets — and not just the Wilpons — was deeply harmed as a result.

Shapiro, Murray defend Dellin Betances after arbitration feud

SAN DIEGO, CA - JULY 12:  Dellin Betances #68 of the New York Yankees and the American League pitches against the National League during the 87th Annual MLB All-Star Game at PETCO Park on July 12, 2016 in San Diego, California.  (Photo by Harry How/Getty Images)
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The dust hasn’t quite settled after right-hander Dellin Betances‘ arbitration hearing with the Yankees on Saturday. The case was decided in the team’s favor, awarding Betances with a $3 million salary for the 2017 season instead of the $5 million he initially requested. Yankees’ president Randy Levine held a press conference to voice his outrage over the figure presented by Betances and his agency, saying it had “no bearings in reality” since Betances does not have the elite closer status required for a salary bump of that magnitude.

Needless to say, the comments caused some consternation within Betances’ camp. The reliever publicly addressed the outburst, telling the press that he was prepared to put his differences with the team aside until he heard what Levine had to say. Via MLB.com’s Bryan Hoch:

Players union executive Rick Shapiro and Betances’ agent, Jim Murray, also spoke out in the right-hander’s favor. Shapiro presented Betances’ case during the hearing on Saturday and called Levine’s comments “an absolute disgrace to the arbitration process and to all of Major League Baseball.” In a report from FOX Sports’ Ken Rosenthal, Shapiro added: “The only thing that has been unprecedented in the last 36 hours is that a club official, after winning a case, called a news conference to effectively gloat about his victory – that’s unprecedented.”

Murray spoke exclusively to Rosenthal, accusing the president of effectively bullying the 28-year-old during the arbitration process and claiming that Levine had both mispronounced Betances’ name throughout the hearing and blamed the reliever for “declining ticket sales and their lack of playoff history.” Like Betances, Murray said that the agency was ready to accept the arbiter’s decision and move on before Levine’s decision to air his grievances to the media. “The only person overreaching in this entire situation is Randy,” Murray told Rosenthal. “He might as well be an astronaut because nobody on earth would agree with what he is saying. Even the others in the room would disagree with him.”

Royals will experiment with Alex Gordon in all three outfield spots this year

CLEVELAND, OH -  MAY 7: Alex Gordon #4 of the Kansas City Royals reacts to a fan while on first base during the sixth inning against the Cleveland Indians at Progressive Field on May 7, 2016 in Cleveland, Ohio. (Photo by Jason Miller/Getty Images)
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Royals’ manager Ned Yost is shaking things up in 2017, starting with left fielder Alex Gordon. Yost told MLB.com’s Jeffrey Flanagan that “every scenario is open,” and expects to utilize Gordon in right and center field this spring while he figures out where to position Jorge Soler and Brandon Moss.

Gordon, 33, hasn’t manned right field since a three-game experiment with the Royals back in 2010 and has yet to play center field during any regular season to date. The focus, however, isn’t on Gordon’s capabilities. Among the three outfielders, he carries the best defensive profile and appears to be the most versatile of the bunch.

According to Flanagan, Soler and Moss are average on defense and will continue working closely with Royals’ coach Rusty Kuntz as the season approaches. One arrangement could see Gordon in center field, flanked by Soler in right field and Moss in left, though Yost foresees Soler taking some reps at DH if his defensive chops aren’t up to snuff.

While Moss is prepared to see starts at either outfield corner, Yost appears to be set on keeping Soler in right field, at least for the time being. The club is hoping for a bounce-back season from the 24-year-old outfielder, who was acquired from the Cubs in December after batting a lackluster .238/.333/.436 and sustaining a slew of minor injuries throughout the 2016 season.