Let’s start with what should be the main takeaway from this reporting: Most baseball executives surveyed believe that MLB owners will ultimately vote to approve Steve Cohen as principal owner and control person of the Mets.
But as SNY reported on Monday, after Cohen agreed to purchase 95 percent of the team from the Wilpon and Katz families, approval is not quite a foregone conclusion. The process could become a bit bumpy, even if it ultimately concludes the way that Cohen and the Mets hope.
Cohen needs the votes of 23 of the 29 other owners, likely in November.
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According to multiple league executives with knowledge of the process, a group of owners is less than thrilled about Cohen. The New York Daily News named Chicago White Sox owner Jerry Reinsdorf as one of the anti-Cohen owners, and our sources are hearing the same.
The White Sox did not initially respond to an interview request for Reinsdorf. After publication, a White Sox spokesperson sent the following statement to SNY: “Despite any reports to the contrary, as a member of Major League Baseball’s Executive Council as well as the Ownership Committee, Jerry Reinsdorf intends to allow the sale of the New York Mets to proceed as appropriate through MLB’s approval process before making any personal determination on the proposed new ownership group. Every party involved in this transaction deserves full consideration before a final decision is made.”
It’s not entirely clear what other owners' specific concerns are, but sources identified three main areas where potential issues could arise.
Cohen and the fund he once ran, SAC Capital Advisors, was investigated and fined for insider trading (Cohen himself was never charged). His current fund, Point72 Asset Management, has been accused of fostering a toxic work culture and one of unequal pay for women employees. Also, Cohen’s previous bid for the Mets last year ended up ruffling some feathers around the league.
“Some owners – he’s not their favorite guy,” said one source.
Ultimately, it will probably be difficult for owners to say no to a record valuation of more than $2.4 billion, because of the impact that could have on all franchise values. After all, the group once approved Jim Crane as owner of the Houston Astros, despite past accusations of workplace racism and war profiteering.
According to sources, it’s too early to count votes and know if Cohen truly has reason to worry about his ability to rally the support of 23 teams. MLB is in the early stages of its due diligence, which will include a close look at deal structure and financing (likely not an issue with a buyer as wealthy as Cohen), and a background check.
Cohen has already been approved as a limited partner of the Mets -- he currently owns eight percent of the team -- but according to sources, that approval process is far more preliminary than that which faces a prospective control person.
Once that process is more fully underway, Mets and league officials will have a better sense of Cohen’s standing among owners.
The last prospective owner to be voted down was former agent Jeff Moorad in San Diego in 2012. One longtime high-ranking baseball executive believes that this situation will be resolved more positively.
“MLB would not have let this go as far without the expectation [that Cohen will be approved],” the executive said. “The Moorad situation was different. Other owners were looking for ways to ding Moorad, a former agent.”
