Fred Wilpon, Jeff Wilpon

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 The team itself had 16 separate Madoff accounts, from which $90 million was withdrawn and used to help fund the team’s “day-to-day operations.”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.

Two elite Cuban players defect

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Jesse Sanchez of MLB.com just reported that Yulieski Gurriel & Lourdes Gurriel Jr., who are brothers, reportedly defected and will be seeking MLB deals. There aren’t any details yet, but Sanchez will be updating with a full story that we’ll link here when he has it.

Yulieski is a 31-year old third baseman and, according to Baseball America’s Ben Badler he was the No. 1 player remaining in Cuba. He was one of the Cuban players who was permitted to play in Japan recently, and he just put up a .305/.349/.536 season with 11 homers in 62 games for the Yokohama Bay Stars and has continued to rake in Cuba. He is likely major league ready right this instant. He’d be an unrestricted free agent given his age and team’s signing him would not be subject to international bonus pool limits.

Lourdes is only 22 years old. He’s hit .269/.355/.414 in 1036 Serie Nacional plate appearances and Badler thinks he has 20-homer potential in the majors one day. He’s currently a shortstop, but is probably destined for a corner. He is young enough to where he would be subject to bonus pool limits. Several teams have already exceeded those limits for the current signing period, limiting the number of teams who could sign him. If, however, it takes MLB a long time to clear him as a free agent — and with immigration issues and the like, that’s very possible — he may not be eligible to be signed until next year, which could bring some other teams into the fold.

 

Indians close to signing ex-Nationals reliever Craig Stammen

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Right-hander Craig Stammen, who spent the first seven seasons of his career with the Nationals, is expected to sign with the Indians.

Ken Rosenthal of FOXSports.com reports that the Indians “hope to finalize a deal” with Stammen today, adding veteran depth to the bullpen. It’ll likely be a minor-league contract with an invitation to spring training.

Stammen missed nearly all of last season following elbow surgery and the Nationals non-tendered him, but he’s scheduled to be ready for spring training. After struggling as a starter early in his career he’s posted a 3.02 ERA in 280 innings out of the bullpen, so if healthy it’d be a nice addition for Cleveland.

A Mexican team wins the Caribbean Series for the third time in four years

Mexican players celebrate their victory in the Caribbean Series baseball final against Aragua Tigres of Venezuela, in Santo Domingo, Dominican Republic, Sunday, Feb. 7, 2016. Designated hitter Jorge Vazquez hit a game-winning home run leading off the bottom of the ninth inning Sunday, lifting Mexico's Venados de Mazatlan to a 5-4 come-from-behind victory and the championship of the Caribbean Series. (AP Photo/Roberto Guzman)
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For those who aren’t familiar, Serie del Caribe, or the Caribbean Series, is the highest club level baseball tournament in Latin America, pitting the champions of the winter leagues in Cuba, the Dominican Republic, Mexico, Puerto Rico, and Venezuela against one another in a bacchanalia of baseball that, if there was justice in the world, we’d all be watching instead of football.

This year’s installment ended last night with Mexico’s Mazatlan Venados beating Venezuela’s Aragua Tigres 5-4 in the final game at Estadio Quisqueya in Santo Domingo, Dominican Republic. Jorge Vazquez — who Yankees fans may remember from a few years back — provided the winning margin when he hit a home run to lead off the bottom of the ninth inning.

This is the third Serie del Caribe title for a Mexican club in the past four years, with Naranjeros de Hermosillo winning in 2014 and Yaquis de Obregón winning in 2013. Pinar del Río from Cuba won it last winter. This is the first time the Venados have won it.

As we noted yesterday, this was longtime MLB starter Freddy Garcia‘s last game. He gave up four hits and allowed two earned runs over five and a third innings for the Tigres, getting a no-decision.

Report: Teams reluctant to gamble on Cliff Lee

Philadelphia Phillies starting pitcher Cliff Lee throws during the first inning of a baseball game against the Washington Nationals at Nationals Park Thursday, July 31, 2014, in Washington. (AP Photo/Alex Brandon)
AP Photo/Alex Brandon
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In Saturday’s column for the Boston Globe, Nick Cafardo suggests that free agent Cliff Lee is seeking a guaranteed major league deal between $6 and $8 million plus incentives. That is turning some otherwise interested teams away, as the lefty is still recovering from a torn flexor tendon in his left elbow. Lee hasn’t pitched since July 31, 2014.

Last month, Lee’s agent Darek Braunecker said the pitcher would need “a perfect fit” to pitch in 2016. He also noted that Lee has begun a full offseason throwing program.

In his most recent season, Lee compiled a 3.65 ERA with 72 strikeouts and 12 walks in 81 1/3 innings for the Phillies. The Phillies had signed him to a five-year, $120 million contract in December 2010 but declined a club option for the 2016 season, instead buying him out for $12.5 million.