Fred Wilpon, Jeff Wilpon

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


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 The team itself had 16 separate Madoff accounts, from which $90 million was withdrawn and used to help fund the team’s “day-to-day operations.”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

Orioles have reached out to Yovani Gallardo

Yovani Gallardo
AP Photo/Tony Gutierrez

From Jon Heyman of CBS Sports comes word that the Orioles “like” free agent starter Yovani Gallardo and “have reached out to him” to gauge his interest in coming to Baltimore and what that might cost.

Gallardo rejected a one-year, $15.8 million qualifying offer from the Rangers earlier this month and so his free agency is tied to draft pick compensation, but that shouldn’t hurt his bottom line all that much.

The 29-year-old right-hander posted a solid 3.42 ERA in 184 1/3 innings (33 starts) this past season for Texas and he pitched well in his one ALDS start.

Heyman reported a few weeks ago that the Diamondbacks are interested, and the Cubs, Blue Jays, and Dodgers were tied to him just ahead of the July 31 trade deadline.

Cubs, Cardinals, Giants, Dodgers, and Red Sox all showing serious interest in David Price

AP Photo/Tim Donnelly

David Price has expressed a desire to return to Toronto, where he finished out the 2015 season, but FOX Sports’ Ken Rosenthal writes Wednesday that the Blue Jays “are not expected to be a major factor in his free agency.”

The teams that should be considered serious suitors, per Rosenthal, are the Cubs, Cardinals, Giants, Dodgers, and Red Sox — all deep-pocketed teams looking to contend in 2016. Money is apparently the issue for the Blue Jays, who are currently owned by Rogers Communications.

Price registered an outstanding 2.45 ERA, 1.076 WHIP, and 225/47 K/BB ratio in 220 1/3 innings (32 starts) this past season between the Tigers and Jays, finishing second in the American League Cy Young Award race behind Dallas Keuchel of the Astros.

The 30-year-old left-hander is probably looking for a six- or seven-year contract worth more than $25 million per season. He is represented by agent Bo McKinnis.

Marlins have begun extension talks with Dee Gordon

Dee Gordon
AP Photo/Alex Brandon

Barry Jackson of the Miami Herald wrote three weeks ago that the Marlins were probably going to explore an extension this winter with second baseman Dee Gordon. And it sounds like those talks are underway.

Via beat writer Joe Frisaro of

As a guest on MLB Network’s “Hot Stove” show Wednesday morning, Gordon confirmed his camp has been in talks with the Marlins regarding a multiyear deal. A source told that the discussions are preliminary and have just recently started.

“My agent is doing the talking,” Gordon said on the show. “They’re just keeping me in the loop. I think it’s going pretty well right now. We’ll see how that goes. I’m just playing the waiting game. We’re going to do the right thing.”

The 27-year-old carries three more seasons of salary arbitration, so there’s no real rush to get something done before next spring. Gordon carries quite a bit of leverage after posting a career-best .333/.359/.418 slash line in 145 games this past season for the Fish. He led all major leaguers in hits (205) and stolen bases (58).

Braves sign Bud Norris to one-year contract

Bud Norris

Bud Norris has found a home for his attempt at a bounceback season, signing a one-year deal with the Braves. Jon Heyman of says it’s worth $2.5 million, which is a huge cut from his $8.8 million salary this year.

Norris had established himself as a solid mid-rotation starter from 2009-2014, but had a brutal 2015 season split between the Orioles and Padres with a 6.72 ERA in 83 innings and a late-season move to the bullpen.

In announcing the signing the Braves referred to Norris as a starting pitcher, so joining the rotation for a rebuilding team gives him a chance to get his career back on track with an eye on hitting the open market as a free agent again next offseason. And if he fares well, the Braves could use him to add a prospect or two at the trade deadline.