The New York Mets: Under New Ownership?
December 10, 2019
Michael Breit, Partner-in-Charge of EisnerAmper’s Sports and Entertainment Group and the New York office, and Managing Partner of Regions, spoke with hosts Kristen Scholer and Brad Smith on Cheddar TV about the reported sale of the New York Mets to billionaire hedge fund owner Steve Cohen.
Michael discussed how modern-day sports franchise owners are increasingly in the media spotlight; they are stewards who need to combine a winning team on the field with community involvement off the field. From a business perspective, Cohen will put his imprint on the franchise and have to look at ways to maximize sponsorship, licensing and merchandising revenue—which he may do via staffing, technology and operational changes. Cohen might accomplish this through some of the strategies that have made him a successful hedge fund manager.
Michael also described many of the factors that go into a winning sports team—such as payroll, management, farm system, data analytics and chemistry. Michael likes the Mets managerial hiring of Carlos Beltran but cautions that, due to significant parity in MLB, most, if not all, of the teams are “upping their game.” Ultimately, Michael predicts that if Cohen puts a winning team on the field, he’ll be embraced by the fans.
The group concluded with a brief discussion of the NY Knicks and if their owner, Charles Dolan, might sell the team. Michael added that with a team valuation bordering $3 billion, anything is possible.