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Might David Einhorn's NY Mets purchase be more than the actualization of a life-sized childhood...

Might David Einhorn's NY Mets purchase be more than the actualization of a life-sized childhood fantasy? Terry Keenan thinks so. With the Mets, Einhorn gets an unparallelled moat, built-in insulation from foreign competition, a front-row seat at the management table, and an enviable inflation hedge.
Comments (5)
  • obstacle2
    , contributor
    Comments (12) | Send Message
     
    Seems like he got a good deal, but why does he not want anything to do with the TV stuff?

     

    That's where the money is.
    29 May 2011, 04:36 PM Reply Like
  • fxmaven
    , contributor
    Comments (1455) | Send Message
     
    I'm not so sure. Ticket sales, TV revenues are down, and the key factor - success on the field - is many years away. Fans are staying away for the time being due to high ticket and concession prices, and the weak economy isn't helping either.

     

    I'm sure Einhorn considers this a call option rather than a buy for a rebound of a second rate franchise, and is ready to lose the money whilst enjoying a childhood dream.
    29 May 2011, 05:03 PM Reply Like
  • Jasper M
    , contributor
    Comments (1652) | Send Message
     
    I've had a lot of respect for Einhorn, but if the reasons given are actually his, it's a bad call: Competition. "moat", etc. only matter of the underlying business prognosis is positive – which it isn't. Baseball as a whole is likely to suffer, for years hence.

     

    Disclosure: I do not currently own a baseball, or intend to procure one within 72 hours.
    29 May 2011, 06:46 PM Reply Like
  • Jake Huneycutt
    , contributor
    Comments (1416) | Send Message
     
    If you're buying a sports franchise to try to turn a profit, you're in the wrong business. The only money to be made from sports franchises tends to be in the market value appreciation. And it's debatable whether there will be much of that over the next few decades, after such huge appreciation in the past few decades.
    29 May 2011, 06:51 PM Reply Like
  • KJP712
    , contributor
    Comments (458) | Send Message
     
    Also a tax break.Might be he will take the Mets public in a few years.
    30 May 2011, 01:21 AM Reply Like
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