Hedge fund star David Einhorn could achieve his dream of controlling of baseball franchise by paying just $1 in three years.
According to Forbes, Einhorn, who agreed last month to pay $200 million in exchange for one-third of the debt-ridden New York Mets, would have the right to obtain a 60% stake in the franchise for just $1 in three years.
Under the terms of the deal, Einhorn, who co-founded Greenlight Capital in 1996, has the right to buy a controlling stake if Mets owners Fred Wilpon and Saul Katz fail to return the $200 million investment in three years.
The ability of Wilpon and Katz to maintain control of the New York baseball franchise may be decided by legal proceedings. The Mets owners are being sued for $1 billion by Irving Picard, the trustee representing victims of the Bernie Madoff Ponzi scheme.
Picard has said Wilpon and Katz of knew or should have known about the epic fraud, but the two men have denied wrongdoing. Many believe the matter will be resolved through a settlement and the final price tag may determine whether Einhorn will be eligible to buy the 60% stake.
Hurting from slumping ticket sales, the Mets are expected to post a loss of $70 million this year, widening their 2010 loss of $50 million.