From now on they will be called the Winpons.
-- Adam RubinWHAT HAPPENED: The owners of the New York Mets have settled with trustee Irving Picard for $162 million, their alleged profit from certain Ponzi scheme funds in the six years before Bernard Madoff's arrest.
In reality, Fred Wilpon and family will be on the hook for only a fraction of that amount -- and will not be required to make any payments until 2016 and 2017.
That's because, as part of the settlement, the Wilpons will be able to apply to the trustee to be reimbursed for $178 million in losses from certain funds. Obviously, like any victims of Madoff's Ponzi scheme, they won't recover every dollar. But they will get a certain percentage based on how much the trustee collects overall from net winners -- likely 50 percent or more.
As a result, the Wilpons' actual payment to Picard -- once the Wilpons' loser funds are reimbursed like other victims -- should be a fraction of the actual $162 million settlement.
Say if Picard pays to victims 50 cents on the dollars they lost. That means the Wilpons could be credited $89 million (half of $178 million) toward their $162 million owed as a result of the settlement. That's a net of only $73 million remaining to pay Picard to satisfy the settlement.
Any disbursements owed by Picard to Wilpon loser funds over the next three years will be deducted from the $162 million owed by the Wilpons to Picard in the settlement. The Wilpons then will owe the remaining amount in equal installments in four and five years.
The lawsuit sought to recover $386 million. Judge Jed S. Rakoff previously had decided that Picard likely was entitled to at least $83.3 million in profits from the two years before Madoff's arrest.
The original suit was for $1 billion, but it was reduced by Rakoff, who decided that Picard could only recover money from the Wilpons from the immediate two years before Madoff's arrest, not the six years Picard advocated. The settlement, while not overturning Rakoff's decision, does establish for the trustee six years as an acceptable period to recover profits.
The settlement talks were brokered by former New York governor Mario Cuomo
Last edited by Dugmet; 03-19-2012 at 12:29 PM.
Besides all the other positives, there's now the fact that this can be put behind the team. It may be dead weight holding them down just a tad, but it's not a gigantic question mark of a cleaver that threatens to lob off their head at any given moment.
If we think this is over...think again. Adam Ruben states that because of the existing loans, the Mets will still be looking to recoup, and the perfect time to do that is the next 3 years. While winning will solve this, it isn't going to start with a payroll increase. That tells me payroll will be low for at least the next 3 years.
As it stands teams do win with $90 to $100 million payrolls. Let's hope SA and company get the pieces in place.
The other good news is that it is no longer a story, and the focus will be back on the field.
They said they owed nothing and agreed to pay $162M. You don't do that if the other guy doesn't at least have an argument. Sounds like a tie at best. That they get to recoup was baked into their thinking (maybe not ours) before the settlement. In the end though, from a mets fan perspective, "show me the payroll."
Here is some simple math to explain how picard folded worse than a cheap lawn chair.
He settles for a judgement of 162 mil.
He admits wilpon/katz are net losers allowing them to recover 172 mil.
So far the wilpon /katz team are up 10 mil.!
Picard also agrees to no appeals on the statute of limitations . He is done and can ask for no more money!
Picard drops his knew or should have known claims basically admitting he had no proof of anything.
Picard also agrees they don't have to pay until their loss claims are settled.
Picard agrees to cap wilpon/katz liability at 29 mil each.
So the most they have to pay out of a 1 billion dollar claim is 58 mil..
And the cherry on top is that now Picard is working for the wilpons and Katz families!!! !
And you want to try to convince me that they did not rip picard a new ahole? They got basically everything they wanted short of a complete dismissal.lmao