Bankruptcy trustee: Mets owners reaped $300 million in phony Madoff profits

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The bluff has been called, the documents have been unsealed and the allegations of just how deeply the Wilpons, Saul Katz and the Mets were in with Bernie Madoff is fairly staggering.  The entire lawsuit can be read here.

Among the allegations: the Wilpons, Katz, their families and their business reaped $300 million in fictitious profits. The team itself had 16 separate Madoff accounts, from which $90 million was withdrawn and used to help fund the team’s “day-to-day operations.”  And then there’s this, with “the Sterling Partners” referring to the Wilpon/Katz business:

“The Sterling partners were simply in too deep—having substantially supported their businesses with Madoff money—to do anything but ignore the gathering clouds,” the suit said. “Despite being on notice and having every resource at their disposal to investigate the litany of legitimate questions surrounding Madoff, the Sterling partners chose to do nothing.”

Not surprisingly, the Wilpons slammed the allegations today, calling them lies and strong-arm tactics and characterizing the trustee’s entire suit as “an abuse of power.”  Their statement:

“The conclusions in the complaint are not supported by the facts. While they may make for good headlines, they are abusive, unfair and untrue. We categorically reject them. We should not be made victims twice over—the first time by Madoff, and again by the Trustee’s actions.”

In other news, non-Mets related allegations suggest that at least one bank — J.P. Morgan — knew that Madoff’s whole operation was a Ponzi scheme.

Yes, they are just allegations.  But many of them — specifically those related to just how much money the Mets and the Wilpons lost to Madoff — are pretty darn specific.  And they can certainly be true even if the ultimate conclusion the trustee makes — that the Wilpons knew or should have known it was all a scam — is shown to be false.

We’ve played some back and forth here about what the Wilpons knew and that’s all fun and worth watching, but this is most  relevant for our purposes for the practical effect it will have on the Wilpons and the baseball team.  Given the thermonuclear nature of the allegations and the sheer amount of money involved, it’s hard to sit here today and say that the Wilpons will simply be able to sell off a quarter of it, cut a check to the trustee and continue on their merry way.  Indeed, such an assumption is now bordering on the naive.

A child was carried out of Yankee Stadium after being hit by a foul ball

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A scary thing just happened in Yankee Stadium. A young fan, it appeared to be a young girl, sitting down the left-field line was struck by a Todd Frazier foul ball. Play was halted on the field as she was attended to. They carried her out, not waiting for a stretcher to come. It was hard to see how bad her injuries were, but those on the field — including Eduardo Escobar of the Twins — were visibly shaken.

Major League Baseball has encouraged — not demanded or required, but merely encouraged — teams to extend netting farther down the foul lines in the name of fan safety. Many teams have done so. The Yankees have not, and have remained somewhat non-committal about it all.

We’ll provide an update of the girl’s condition once it is known.

Everything you wanted to know about collusion but were afraid to ask

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Most of you are likely aware of baseball’s history of collusion. Specifically, the three instances between 1985 and 1988 when the league, the owners and their general managers entered into a conspiracy to suppress salaries by agreeing to share information and to not to sign free agents away from other teams. The scheme, which violated the explicit terms of the Collective Bargaining Agreement, led to a series of arbitrations which resulted in the owners being forced to pay the players $280 million in damages.

While you may know that large-arc story of collusion, there is an awful lot of stuff relating to it all that is seldom talked about. Interesting stuff which, despite its genesis over 30 years ago still impacts baseball to this very day. If you want to hear some talk about that, I was on the This Week in Baseball History podcast with Michael Bates and Bill Parker last night, and we talked about it, all in honor of the first decision in the three collusion cases which came down 30 years ago this week.

We covered a lot of topics you may not know arose out of the collusion cases. For example:

  • Did you know that the collusion cases led more or less directly to the existence of the Marlins, Rockies, Rays and Diamondbacks?
  • Did you know that it led, eventually, to Bud Selig becoming commissioner?
  • Did you know that it contributed greatly to the 1994-95 labor impasse which led to the cancellation of the 1994 World Series?
  • Did you know that it spun off litigation that continued for nearly 20 years after the collusion plan, so that in the year 2005 people were STILL talking about what Steve freakin’ Garvey was supposed to earn back in the 1980s?
  • Did you know that, in one key respect, the collusion cases of the 1980s had their genesis in something Sandy Koufax and Don Drysdale did back in 1966?

Maybe you knew some of that, maybe you didn’t, but it was all kinda wild. If the topic interests you, I highly recommend you take a listen to the podcast. We go light on the legalities, heavier on talking about stuff like what might’ve happened if Kirk Gibson signed with the Royals in 1986 and never made it to the Dodgers in 1988. It’s baseball talk that you may not hear every day.