As Alex Rodriguez and Jennifer Lopez bolster their group to bid on the Mets and a group led by the owners of the Philadelphia 76ers and New Jersey Devils also eyes a bid, a third potential buyer for the Mets appears to have surfaced. Scott Soshnick of Variety reports that brothers David and Simon Reuben, whose combined estimated worth is a whopping $14 billion, are now “exploring” a bid. Real estate opportunities in the area surrounding Citi Field are likely a driving factor in the interest, per the report.
The Reuben brothers, both in their mid- to late-70s, have built their empire through a series of real estate endeavors, investments in tech companies and in retail over in the United Kingdom. David Hellier and Natalie Wong of Bloomberg reported less than two months ago that the Reubens purchased a retail condo near Manhattan’s Rockefeller Center as they looked to expand their enterprise to New York, and a bid for the Mets would seemingly align with that interest. They’ve also expanded their residential real estate efforts into Madrid (via Bloomberg) and expressed interest in purchasing a stake in an English Premier League club.
With the Wilpon family reportedly looking to complete a sale of the team — but, according to Newsday, not the SNY Network — by year’s end, we’ve seen increased interest surfacing over the past month. Of course, the Mets believed they were already on the cusp of a gradual, five-year sale to billionaire Steve Cohen last December. At the time of the agreement, Cohen would’ve taken over an 80 percent stake of the club by 2025. However, that deal crumbled in February and left the Wilpons seeking a new buyer.
The economic downturn brought about by the COVID-19 pandemic complicates matters and will significantly cut the valuation of the franchise, but the extent isn’t yet known — nor is the level of bid which any of three potential buyers is planning. The two most recent sales of MLB clubs, the Royals in 2019 ($1 billion) and the Marlins in 2017 ($1.2 billion) both illustrate the demand for franchises, though. And as we saw with the Marlins’ sale, it’s possible that several permutations of ownership groups headed by the same principal figures could come together and fizzle thereafter before a deal is ultimately agreed upon.
Was hoping it’d be Oprah
You get a hat, you get a hat, everyone gets a hat
Better have some brims tho
I feel like having an owner with that much money might not only be a good thing for the Mets but also a good thing for baseball, judging by how cheap some of the owners are.
They didn’t get that rich by beimg generous with their money. One of the richest owners in baseball owns the Athletics, amd you see how that’s been the last 20 years.
Owners are not really cheap. The 162-game season is a break-even investment for most of them. Profits are typically made in the post-season only.
i sincerely doubt that
Think about it. If a team is worth 2 billion dollars and you make 10 million dollars a year. Is 10 million dollars a lot of money? Yes it is. Is 0.5% a good return on your money? No it is not.
That’s why three potential groups are sniffing around the Mets? Hoping they’ll make the playoffs and finally turn a profit?
Profits are typically made in secondary businesses, like retail/residences/restaurants the create an atmosphere, similar to what SunTrust/Truist has become in ATL with The Battery, generating year-round income. As a Queens resident, no one goes anywhere near Citi Field when it’s not on a game day unless they’ve fallen asleep on the train or a lost tourist trying to get to The Unisphere or Arthur Ashe Stadium.
There is hope that the Reuben bros would build up the area and make something nicer. I like the stadium much more so than NYY, though the area needs a lot of work.
You are spot on, Dugmet. The true value in MLB teams in cash flow. Most teams are cash flow positive every year (and cash is king), but with the sizable debt service most teams carry and the depreciation of expensive fixed assets like stadiums and construction improvements, most teams lose money from a P&L perspective, which allows teams to avoid paying taxes. And it is the playoff TV revenues that allows these teams to become cash flow positive. Look no further than the Atlanta Braves, whose financial statements are public. They made $38M in operating income (positive cash flow) last year on $470M in total revenues. They reported -$50M in net income after depreciation and amortization. Each team earned about $35M last year from playoff television money. So a Top 10-15 franchise like the Braves were break even (cash flow) until the playoff revenues were earned.
But do the math. Say a team is worth around 2 billion altogether.
If you CONSERVATIVELY invested that $2B at a 4% overall return, you make $80M per season. A 2% return is $40M.
But, baseball is supposed to be a stale 0% return business?
If an owner was stripping cash hand over fist ala McCourt, that’s an issue. But for some fans to insist as an owner to try to take less return than you, the fan, expect from your personal bank and retirement accounts?
Be reasonable people.
It’s not :”just” about the money because owning a major sports franchise is a rare commodity that the ultra-rich often use as status symbols. It’s like the yacht craze that has occurred in the past 5-10yrs. One billionaire topping another billionaire, only to have another build an even bigger one. That only goes so far, but owning a franchise is unique bc there are so few in major sports. Some places do use it as a way to help other businesses, while some are pure fans. Things seem to be going more corporate, but I still hold out hope a guy like Cohen buys the mets and is most interested in winning and the money part is much less of a concern (at the numbers he is dealing with worth $13B or whatever it is now.
Not true at all. Teams make money off of TV deals, irrespective of post season appearances.
MLB has over $6 Billion in revenue. Anyone who says or believes the owners when they say baseball is not profitable is a fool.
And that’s 6 billion per year. Sure not all teams see it equally and salaries are high but crunch the numbers. It’s profitable.
A lot of interest for a non profitable business
The vultures are gathering!!!
Every time I see that picture I think it John Elway
chaos
It’s gonna be real fun when the Mets sell for $2.4B+ and the owners have to explain why they couldn’t afford to pay players their contracts
Right, because nobody ever had trouble paying their bills but pocketed a bunch of cash selling their house.
I have it on the BEST authority (Sean Hannity) that the former owner of the USFL Generals will buy the Mets and move their spring training to Mar A Lago.
Consolation prize if he loses the election?
When he loses
I’m not sure about him losing. Where’s Joe been lately?
Sitting back & watching his opponent get humiliated in a 1/3 full small arena. If your opponent is destroying himself, don’t get in the way.
Rofl. That looked like a Nickleback concert. It was quiet and people were more interested in their phones. That looked like a Berlin rally in 1945
You do realize that if sleepy joe tried to host an rally at an arena of his choice, he’d be lucky to draw 2,000 people? And that’s pre-pandemic!
The Rueben brothers are in their mid to late 70’s. Aren’t they a little old to be looking to buy a professional sports team??? In a matter of 10 years or less they won’t be able to control their businesses ect…. and the Mets will have to be sold again!! WHAT’S THE POINT????
I assume at least one of the brothers has children who will be involved in the day to day operations, just like Steinbrenner did. The team can stay in the family once they move on.
Some people are driven to create more and keep doing things, not just rest on their laurels and go to a convalescent home upon reaching a certain age.
More power to them.
MLB should approve a corpse to buy the Mets given how they’ve been run so horribly for years. You literally could run this franchise better from the grave not doing anything than the harm and negligence the wilpons have caused.
I’d imagine they’d be in win now mode.
Clint Eastwood is 90. We would have all lost out if he stopped making movies because he was “too old” 15-20 years ago
Only the Wilpons can turn this into a game show just sell the damn team already
Only the Mets would find themselves selling a franchise in the middle of a pandemic.
Why not Bobby bonilla since the mets are still paying bonilla.
Will he show up or will he keep fishing on his yacht off the coast of Florida and Puerto Rico?
What a life Bobby! You get paid long after you retired, by the one team you disappointed twice in your career. You always hang on your yacht fishing off the coasts of Puerto Rico and Florida where they love you. And when you want to come ashore in between your travels, you’re welcomed in every South Florida restaurant because people want to see your 1997 World Series Champions ring and hear stories about what it was like playing for Jim Leyland, and how it was playing with the rest of the 1997 Marlins.
I’m Bobby Bonilla & I approve this message
Leave it to the Wilpons to want to sell their franchise by the end of the year, at possibly the WORST time where they’ll get the LEAST amount of value because of this pandemic. I don’t think you could run a franchise any more comically if you tried
They’re going to get multiple billions of dollars *and* keep SNY, which makes a lot of money. I hate the Wilpons as much as anyone, but please don’t act like they’re not going to make out like bandits here.
Short lived gain.
Currently, mets own a 65% stake in SNY which also pays the Mets 52m/yr through 2030.
If you think the new owners will sign a new rights deal with SNY when the team owns 0%, or that some other entity won’t swoop in and pay more…
Well, basically wilpons want to hold on to 65% of 9 years of rights, including the strike threatened years.
I’d think you’d just sell whole to fetch a much higher price, present day value of the cash in this depressed market should be worth more than the future revenue.
Honestly, the AROD group would be the best for fans. The Mets need an owner with a passionate love for the game, not some old geezers looking for more real estate holdings.
And free greens and lozenge bowls throughout the clubhouse, cream in every locker!
Arod’s steroid use is irrelevant to this discussion, obvi.
Why
Oh good, potential new owners who care more about Queens real estate than the team. What could go wrong?
This is why I LOVED Mike Illitch in Detroit before he passed away. He was in Detroit’s farm system for awhile and when he didn’t make it there he started businesses like Little Ceasars pizza and other enterprises. Until he then could afford to buy the Tigers and he did so as a true fan. Was so nice having an owner that cared more about the team then they money. RIP Mr. I!
I think I’ll throw my hat into the ring as owner of the Mets. Who wants into my ownership group? A Marlins fan and whoever else wants to get in. Let’s start a collection plate.
I’m a football (soccer) fan and the Rueben brothers are currently in the process of buying Newcastle United. A 10 % share , the whole deal is worth £300million . The main party is the Public Investment Fund of Saudi Arabia. The fund is the Saudi government’s official money investment portfolio. PIF is currently worth approximately £350 billion. The Rueben brothers own lots of racecourses in the UK and would be looking to make their money in property around the area. If the Rueben brothers do buy the Mets I think they would bring in PIF at a later date because Saudi Arabia are trying to change their image by investing in western companies and sports is a major part of it
Anyone is better then the Wilpons.
Rumor has it that an under the radar bid for the Mets will be coming from the Addams brothers, Gomez and Fester.. They plan to change the name the team to the…………………
Morticians