SAC Capital CEO Steven Cohen
Scott Eelis | Bloomberg | Getty Images
Hedge fund titan Steve Cohen is in talks to increase his investment in the New York Mets, his family office, Cohen Private Ventures, and the current owner said Wednesday.
“The Sterling Partners and Steve Cohen are negotiating an agreement in which Steve Cohen would increase his investment in the New York Mets,” the companies said in a statement.
Under that agreement, Fred Wilpon, chairman and co-founder of Sterling, will remain CEO of the Mets for five years, while his son, Jeff, will stay on as COO for the same time period. Sterling currently has a majority stake in the team.
Meanwhile, Cohen will remain in his role as CEO of Point72 Asset Management, and his stake in the Mets will continue to be managed by Cohen Private Ventures, his family office said.
Fox Sports reported Cohen could end up controlling 80% of the Mets.
Wilpon had bought back a bigger slice of the team in March, with Sterling Equities — which Wilpon co-founded — agreeing to buy back a 12% stake in the team. That interest was sold to help fund a settlement for victims of the Bernard Madoff pyramid scheme.
Wilpon and Saul Katz, the co-founder of Sterling Equities and president of the Mets, were sued in 2010 by Irving Picard, the trustee representing Madoff victims, claiming the pair should have been aware of the scheme. The lawsuit was settled in 2012 for $162 million and later reduced to $61 million.
Wilpon sold shares of the Mets to cable companies Comcast and Charter to help pay the settlement, but repurchased those shares for $180 million in March. The following month, Forbes valued the Mets at $2.3 billion.
Also, as part of the agreement Wilpon will also stay on as control person, which calls for Wilpon to be accountable to the MLB for operation of the Mets and to ensure the team is complying with league rules.
The league office wasn’t immediately available for comment.
Disclosure: Comcast is the parent company for NBCUniversal and CNBC.
