New York Mets Need a Regime Change, Fred Wilpon and Saul Katz

Back in February, all the talk was about a new era and a regime change for the New York Mets. Owner Fred Wilpon and president Saul Katz were changing up the roster to appease their angry fan base. Their goal was to give their fans answers to questions such as these.

Can Jose Reyes stay healthy? Is Jason Bay's inaction at the the plate in 2010 worth the $16 million still owed him each of the next three years? With Johan Santana out until midseason, can our backup pitchers maintain consistency? Is Carlos Beltran even relevant any more?

The regime change the fans were looking for was neither the players nor the general manager or the manager. The fans are looking for a change in ownership.

Fred Wilpon has been successfully lining his own pockets while systematically bankrupting the New York Mets. This kind of mismanagement does not give rise to the sense of renewal that Wilpon has been tauting. 

Fred Wilpon, the Mets and Sterling Equities, a Fred Wilpon company, are marred in a $300 million lawsuit by Bernie Madoff's lawyers. The lawsuit states that Mets owners "consciously disregarded" years of red flags about Madoff, while enriching themselves with profits they did not deserve, all the while using imaginary profits of some $90 million dollars to fund the Mets day-to-day operations.

Fred Wilpon and Sterling Equities were so enmeshed financially with Bernie Madoff, they chose to turn a blind eye and do nothing. The same complacency that gave rise to them may also be their downfall.

Their only saving grace is a $200 million deal with hedge-fund manager David Einhorn that was supposed to close by the end of last month. The deal would give Einhorn a 33% minority stake in the Mets. 

The holdup involves how long Wilpon and Katz have to repay Einhorn. This could be anywhere from three to five years. The deal states that Einhorn will maintain 16% of his original 33% minority stake if his initial investment is paid in full. If Wilpon and Katz cannot repay Einhorn in the agreed upon time frame, Einhorn may be able to increase his stake in the Mets to a majority with 60%, giving him ownership of the Mets. 

Wilpon needs this deal if he hopes to maintain any semblance of ownership. The Mets will be out of money by the end of the month. Maybe a change in ownership is just what the Mets and their fan base need.