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.
Jon Morosi of MLB Network said yesterday that the Detroit Tigers and Chicago Cubs have been engaged in trade talks involving starting pitcher Justin Verlander and catcher Alex Avila. Morosi also noted that the Los Angeles Dodgers have shown interest in Verlander as well. Whether this is idyl chitchatting of serious dispute is unclear, of course. Everything is unclear in the leadup to the deadline.
The veteran right-hander is carrying a 4.50 with a 120/57 K/BB ratio over 124 innings. Verlander impressed last year, finishing second in AL Cy Young Award balloting, but he has fallen back to Earth in 2017. His velocity remains high, however, and it’s not hard to imagine him going on a solid run in a way that could help a contender. He is owed $56 million over the next two seasons, however, and has a $22 million option that could vest for 2020, so negotiations for him could be tough. If the Tigers want talent back, they’ll have to eat salary.
Verlander got an ovation from a Detroit crowd last night which seemed to sense that, yes, it’s possible he pitched his last game for the Tigers. Given that he has 10/5 rights, allowing him to veto any trade, that decision is ultimately up to him. It’s not hard to imagine him accepting a trade to a contender, however.
We wait see.
The Dodgers beat the Twins last night thanks to a Cody Bellinger three-run homer. But Bellinger was not the only Dodgers rookie who had a notable game. A far more unconventional one is worth mentioning as well.
That rookie is reliever Edward Paredes, who made his big league debut last night. What makes him unconventional: he’s 30. Turns 31 in September, actually. Paredes pitched professionally for 12 years before making it to The Show. Most of that time was in the affiliated minors in the Mariners, Indians, Angels and Dodgers organizations. He spent time in the independent Atlantic League in 2013-15 as well.
Paredes did not do anything heroic last night. It was more of a right place/right time kind of appearance, retiring the side in order with a fly out, line out and a ground out and remaining the pitcher of record while Bellinger hit that three-run homer. That’s enough for a W, though. A W that Paredes waited a lot longer for than most pitchers who notch one in the bigs.