The judge has issued a ruling in the bankruptcy case involving the Fred Wilpon, Saul Katz and the Bernie Madoff fraud. Full reports aren’t out yet, but it sounds like a bit of a mixed-bag, but generally good news for Wilpon and the Mets:
- Good news for Wilpon and the Mets: all but two counts brought by the bankruptcy trustee, Irving Picard, have been dropped;
- Bad news for Wilpon and the Mets: one of the two claims that remain — fraud — could, theoretically speaking, still leave them on the hook for a $1 billion liability, should the trustee prove his case;
- Good news for Wilpon and the Mets: there appears to be a higher burden of proof placed on the trustee than he had originally sought in order to make such a recovery: he has to prove that “the defendants willfully blinded themselves to Madoff Securities’ fraud” as opposed to having to show that they could have been aware of it had they exercised good judgment.
There is still risk here, but the risk of the massive, Mets-killing award of $1 billion is much lower, because the trustee will have to show some serious bad acts on the Wilpons’ and Katz’s part in order to get there, not just that they were generally unaware. And while, yes, there are many people who are skeptical that sophisticated business people like Wilpon and Katz had no reason to investigate Madoff’s investments further, there hasn’t been any suggestion that I’m aware of that they ignored actual evidence that a fraud was afoot and played the see-no-evil, hear-no-evil trick with respect to it.
So where does that leave things? Both sides seem to have risk here. The trustee has had most of his case blown away and, while there still exists the potential for a home run, it’s no sure thing at all. The Wilpons still have that giant potential liability there, but it’s not imminent. This is generally where parties to a big money suit take a step back and try to settle. It might be the best course for both parties here.
UPDATE: (11:36 AM EDT, Wednesday): The deal has been announced by both clubs. The A’s will be receiving left-handed pitcher Colt Hynes. Hynes is 31. He’s pitches seven games in the big leagues and has spent ten years in the minors with a 3.62 ERA in 456 games, almost all in relief.
Update (7:49 AM EDT, Wednesday): Susan Slusser hears word that, yes, the deal is official.
Update (7:20 PM EDT): John Hickey of the Bay Area News Group reports that Crisp has indeed been traded, but there won’t be an official announcement until Wednesday. Crisp has already left the Athletics’ clubhouse.
Steve Adams of MLB Trade Rumors is reporting that the Athletics and Indians are making progress on a trade that would send outfielder Coco Crisp to Cleveland. Jon Morosi of FOX Sports confirms Adams’ report. Crisp, who has 10-and-5 rights, has waived them in order to facilitate a deal.
Crisp, 36, is owed the remainder of his $11 million salary for the 2016 season and has a $13 million option for the 2017 season that vests if he reaches 550 plate appearances or plays in 130 games this season. He has already played in 102 games and logged 434 PA, batting .234/.299/.399 with 11 home runs and 47 RBI.
The Indians are still looking to bolster the outfield. Michael Brantley is expected to miss the rest of the season, Bradley Zimmer may not yet be ready for the majors, and Abraham Almonte is not eligible to play in the postseason after testing positive for boldenone in February.
I met some guy on a hike a couple of months ago who used to be married to a close friend or a cousin or something of Indians pitcher Zach McAllister. I forget the details but it was some tenuous relationship like that. No different than a lot of brush-with-fame stories you get from Triple-A towns like Columbus, where McAllister spent some time.
Anyway, the guy met McAllister a couple of times. They didn’t really talk about much but the guy said he remembers McAllister talking about just how hard baseball was. In terms of the skills required and the mastery of it even if you are blessed with those skills. And, of course, the mental strain of it all when you’re at that place, as McAllister was at the time, when your career can either be made or broken by what the big club thinks of you. He was 22 or 23 then, and if he hadn’t been called up soon, he might’ve gone from prospect to organizational guy and that’s a lot of money left on the table.
Anyway, the point of it all was that this guy I was hiking with — not a big baseball fan — was super impressed with McAllister and said he hadn’t thought about just how hard professional sports were to even the guys who are insanely gifted at playing professional sports. I don’t think most of us think about that as much as we probably should.
Then again, sometimes players make it look easy. Like McAllister did last night when he threw a pitch to Kurt Suzuki, kicked the line drive that was hit back to him into the air and caught it on the fly: