Jun 18, 2013

The Madoff Money Trail

I am not trying to pretend I understand what the hell went on between the Wilpons and the Maddoffs, or between Bernie and anyone for that matter. Just that since the announcement that the Wilpons are selling a portion of the team there has been a lot of confusion as to how the Wilpons lost money and more precisely how much.

There are tons of different reports out there even before all this “limited partner” stuff came about today. I will simply work with the most popular figures as an attempt to demonstrate the most likely scenario. Again I have no idea how accurate any of this is, and in fact I assume it’s all wrong. This is just how I understand it as happening. Feel free to correct me via the comments.
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Reaction: Wilpons selling share of Mets

The Mets just released a Press Release stating that they are exploring the idea of taking on a “strategic partner.”

Of course people are going nuts over this either elated thinking the Wilpons will soon be gone, or crushed thinking the sky is falling and the Mets will start cutting payroll.

My initial reaction to this is that this can’t be good. An ownership group that has many times stated that the Mets are the status icon for the Wilpons family can not be happy about selling any piece of it.

It tells me two things for certain:
- The Wilpons are hurting. They took a bigger hit through the Maddoff fiasco and are now bracing for more in the suite by the trustee of the Maddoff victims.
- The Mets aren’t making enough money. No surprise when you consider the new stadium and all it’s financing plus the horrible stink around the Mets on the field and in the empty seats.

This could end up being good for the Mets franchise. It could bring in some deep pockets, but not only that, it will give the Wilpons someone to answer to. No longer could it be run as a family toy.
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Mets: Is losing acceptable?

It’s a very simple question.  Yet it’s one I would like to see answered by the Wilpons in the very near future.  It’s an answer that will tell me, as a die-hard Mets fan, so many things.

To most people when they read this they will scoff at such a stupid question.  But to anyone that has lived and breathed with these Mets the last few years you are really left to wonder.  At every turn losing has been condoned by the Wilpons and the Mets brass at large.  It’s time for a culture change and the first message that needs to be sent is that losing will not be accepted.

Your fans don’t accept it.  Don’t believe me?  Check your gate receipts.  Why am I going to spend my hard earned money attending your games when I have very little confidence it will go towards putting a winning product on the field.

First act in this reversal will be to fire the clown at the wheel.  I am so sick and tired of Jerry Manuel and his excuses.  I am so sick of how after every loss he gets in front of the press and makes excuse after excuse and downplays every situation.  Hey Jerry, your team is in dire straights and it’s about damn time you act like it.  Get mad.  Throw something.  Show some emotion.  Your career is on the line here and yet you barely have a pulse.  When your done with that I’d like you to explain to me how a guy that was in AAA up until a week ago in lieu of Frank Catalanato is now batting cleanup for you?

Too many players get passes around here.  Too many players just don’t give a shit.  Five minutes after Oliver Perez refused his demotion to the minors they should have released him.  I am so tired of closing my eyes, ignoring everything we have seen for 4 years, and praying that this guy is going to suddenly get it.  The guy is a bum and the sooner we are rid of him the better.  Now not only is he not worthy of pitching in the majors, but he’s going to eat up a roster spot on a team who’s bullpen’s arms are falling off.  Fantastic.  If he insists on staying with the club, hand him a broom and tell him to get to work around the clubhouse.  I don’t ever want to see this guy on the field for the Mets again, and I’d be willing to wager those same sentiments are shared by more then a few of his teamates.

It’s time for the Wilpons and the Mets at large to show it’s fanbase that they have a plan.  That it’s about winning first, not making money.  Show me your as serious about this team as I am.  Then maybe I will start to come back.  Right now my confidence is at an all-time low and my faith in you as an organization is crumbling.  Please prove me wrong.

Why the Mets front office is FUBAR

This is a great blog post by Adam Rubin who has recently joined the ESPN New York team.  In it he discusses exactly what is going on with the Mets.  Most people want to blame Omar Minaya, and make no mistake he has butchered most of his job responsibilities.  But make sure you read between the lines.  It’s not all Minaya’s fault.

In fact I would go even further and suggest that Omar, and Jerry for that matter, are being set up to fail.  Not that the Wilpons want to fail, just that they looked around and decided they didn’t want to expend the necessary resources to fix the flawed team, so they kept Omar and Jerry around knowing they would make great scapegoats if the Mets had another disappointing season.

It offers them a layer of protection.  They think that by keeping the two around it gives them two sacrificial lambs to lop off their heads to placate the fans.  It’s very obvious that Omar at this point, has very little power in this organization.  I frankly don’t understand how the man can possibly do his job.  He has a lame-duck manager that wants to win now at all costs to save his own skin, and his job as GM is supposed to be to follow a long term strategy for the club.  How can you expect a guy that knows he will be fired, and all but out of baseball, if this team falters, to give a crap about next year.  How can he possibly provide that checks-and-balances effect with the manager when they are both living on borrowed time.  It shows how ineffective the Mets front office really is.

Omar Minaya is a figurehead with this team.  He is General Manager in name only.  What worries me most  is the handling of this situation could harm us in finding a top of the line replacement for the future.

Please Mets, Do Not Screw This Up!!!!

Everyone says it every game, if Jose Reyes goes, then go the Mets. The Mets record nearly goes hand in hand with Jose’s stats. If Jose gets on base, then he mostly likely will score and if Jose scores the Mets are likely to win. An easy concept to follow, get Jose in the lineup and good things will happen.

However, as I ran on the treadmill at the gym today and saw ESPN’s bottom line and it said “Reyes to return to baseball activities, Opening Day in question”, I thought “oh here we go again, he is going to rush back and get hurt or something.’” Baseball is a marathon, just to have Jose out on the field during introductions and making the casual Met fan happy is not worth this long term risk of rushing back.

Jose is virtually coming back today for his first day of spring training, it is an unfair expectation to expect him to be ready in 12 days. If I was confident in how this team was run and it’s medical staff, then this wouldn’t even be a concern but it is. We know what the Wilpon’s are about, making money and selling tickets. It’s simple, he sells seats, people want to see him and their is no way they want empty seats on Opening Day. We know the medical staff will clear him to play regardless of what is best for the team. Most likely, Jose will probably be right there pushing them to let him play faster then he should. My opinion is that he will be their on Opening Day on the field and I feel that it could be a big mistake. Please Mets listen to your fan base one time, we will be patient this year just do the right thing for the team, make sure Jose is okay and ready before he suits up and we will see him soon enough and be with you guys for what we hope is an exciting 2010 season.

Mets draft philosophy hurting the future

The Mets are one of the elite clubs in Major League Baseball. Don’t scoff at me, I am talking about in revenues. They just opened a brand spanking new ballpark that they routinely said would increase revenues for the club. They have TV rights that are the envy of the league (second to only the Yanks) and they have a rabid fan base that despite years and years of heartbreak come out in droves to support this team.

The Mets have as many resources as any team out there. The only reason the Yankees can spend more money, is because they have had more success then the Mets, not because they have some money faucet down in Tampa. There is no reason the Mets couldn’t tap into the same streams, they just have to be successful. The Mets failure have been organizational and have been failures of baseball, not business. They often do not have the best people performing the most important jobs. On top of this, despite their revenues, the Mets often operate like a small market team. It’s like because they play in the recent shadow of the Yankees, and have been second fiddle to them in New York, they take on the persona of small market team. It’s a crisis of confidence. The Mets should be the Yankees of the NL, instead they tend to operate more like the Royals and Pirates.

I, as a fan, have a real problem with this. By and large I pay as much as Yankee fans do. I pay a lot to go to games, I pay a lot to watch my games on TV. I feel that money should be put back into the baseball team. It should not be siphoned off to people like Bernie Madoff or to expand the Wilpons real estate empire.

One area that really bothers me is the Mets farm system. The two major ways to make sure this talent pipeline are stocked is through the amateur draft and the signing of unrestricted amateur players.

Baseball operates differently then a lot of other sports with respect to the draft. With sports like the NFL and the NBA the contracts draftees get are pretty much structured upon where they were selected. In baseball it can vary widely, usually based on the players agent and depending on if the player is out of high school or college. Additionally with the disparity in revenues if a kid knows he can get big bucks from a flush big market team, he will put it out there that he demands big market money, often discouraging small market teams from drafting them even if he’s available.

This is one area I would really like to see the Mets take advantage of. By leveraging their advantage as a major market team in this area they can make a big difference with their farm system. Unfortunately as Joe Spector over at MetsMerizedOnline.com reports the Mets often spend far less then they should. In fact in 2009 they spent the absolute least of all MLB teams. How does this happen? Well we do need to take into consideration that they didn’t have a 1st round pick so it would tend to be less then the year before. I fail to understand how they can spend less then teams like the Marlins, the Royals, the Pirates, and the Nats. It just doesn’t make sense. The fact that they selected a reliever with their first pick certainly didn’t help things either.

According to this article in the NY Times the Mets are really doing themselves a dis-service and are operating like they have no idea what their doing:

The Mets divvied $3,134,300 among their 35 signed picks, more than 50 percent less than their 2008 outlay, when they had two first-round selections and a first-round supplemental pick. By contrast, the average for all 30 teams was a shade more than $6 million. Without a pick until the second round, No. 72 over all, the Mets’ spending was destined to decrease. But their 2009 strategy resembled that of a small-market club that sometimes bypasses talented players in earlier rounds because it does not want to spend more on them than players available deeper in the draft.

It gets worse when you consider this:

“With a brand-new ballpark and a television network, the Mets’ revenues are probably among the top five clubs in baseball,” said Jim Callis, the executive editor of Baseball America and an expert on player development. ”After spending about $6.5 million when they had extra picks last year, do I think they could have found the money this year? Yeah, I think they could have. It just comes down to the willingness to spend.”

This annoys me to no end. Do we see a reduction in costs on our end when the Mets have a bad season? We most certainly do not, so why do they get away with not spending money to put a winning product on the field? Examples like these to me are the Wilpons blatantly not caring about winning. Talk is cheap, it’s your willingness to make moves that make me believe your serious owners, or just a spoiled kid playing in his Queens sandbox.

The Mets seem to be more concerned with being good “baseball citizens” and not as much about stockpiling the best possible talent. The Yankees, across town, get it. They understand they have a competitive advantage and leverage it at every chance they get. As much as people bitch and moan about the Yanks, when you sit down and analyze it you really have to admire them as an organization. I would trade the Wilpons for the Steinbrenners any day of the week, even if it means I have to take Hank in the deal.

The Yankees lavished $423.5 million on C. C. Sabathia, A. J. Burnett and Mark Teixeira last off-season, but they have also devoted more resources to the draft and the minor leagues. Now they routinely press their financial advantage in the draft, spreading $7,564,500 (ninth most) among their 27 signed picks in 2009, including about $2.2 million on their first-round pick and about $1.25 million on their second-round pick. Even after paying those above-slot bonuses, the Yankees still spent almost $1 million more on the rest of their 25 selections than the Mets did with all 35 of theirs, despite the teams having comparable picks.

So even after spending half-a-billion on the top free agents out there, the Yanks were still willing to invest more into their future then the Mets. Maybe that is the problem. It’s obvious the Wilpons are horrible when it comes to investing their money, maybe they just don’t understand that the farm system is investing in the franchises future. Now that I think about it, I wonder if they are using Bernie Madoff to handle that investing too?

Mets front office accounting doesn’t add up

This isn’t meant to be a bash piece. I don’t pretend to know the dollars and cents behind my beloved Mets. Problem is at times, I feel like neither does the front office.

When you sit down and think about it, the Mets really did pinch their pennies this season. Some people will call me stupid pointing quickly to the Jason Bay signing. I agree that’s a nice signing and I like seeing him in a Mets uniform. But since he got here Omar has been the king of the obvious. What he has lacked is finding depth and those diamonds in the rough that are so important to winning teams. We lack the role-players and veteran leadership that we need. This is because as soon as Bay was signed, the Wilpons slammed the checkbook closed. I really think they thought to themselves “Ok we signed them (the fans) Bay, they should be happy, now not another dollar more!”

Lets use two examples of players we knew absolutely, 100%, wanted to play for the Mets. I have been screaming and yelling for Orlando Hudson for two years now and for two years now we have missed the boat. It’s no secret that I think he is just what the Mets need. A good hitter and a great fielder up the middle. His presence would be an upgrade in the lineup, and a huge upgrade in the field. How in the world, when so much is riding on the performance of your flaky pitching staff, can you not make this move and upgrade a middle infield spot? The real kicker is for two years in a row now Hudson has signed for a $5 million dollar, 1-year contract. That is such a bargain. And I am not even taking into account his clubhouse benefits.

Along with Hudson another guy that publicly came out and said he wanted to play in Queens was Jason Marquis. He signed a 2-year $15 million dollar contract. Your telling me that the Nationals can afford to sign him but the Mets can’t? Am I supposed to believe that we couldn’t use another arm? Look at the Yankees, they get it, they had a stud rotation last year, and they went out and jumped at the chance to make it stronger when it presented itself. The Mets instead chose to pass. Now let me slow it down a bit by saying I don’t think Marquis is a top of the ladder starter. He’s not the solution for the Mets. But I fail to see how he wouldn’t help us? We need to sign anyone who wants to be here. After watching so many players that didn’t want to be here (ie Tom Glavine, Aaron Heilman, et all) we need to welcome people who want to play for us (hell you could debate even the owners don’t want to be in Queens!).

Take these two contracts and it adds up to around $12 million dollars. If estimates are correct that the Mets payroll is somewhere around $120 million for the year, that would mean an increase of only ten percent. For a ten percent increase you would add a Gold-Glove second baseman and another good bat to your lineup. You would add another professional pitcher and deepen your rotation that much more, and in turn strengthen your bullpen. Not to mention adding to guys who would really be excited to play in New York, and not just because of the dollar signs.

It’s kinda crazy when you think about how the front office had no problem adding that extra year to Bays contract even when nobody else was bidding against them. It’s moves like this that drive me bonkers. It’s like Omar and the ownership get dazzled by the big names and get tunnel vision and lose sight of the actual goal. The goal isn’t to put a big name up on the scoreboard, it’s to put a winning team on the field.

The thing I think they fail to see is that a winning team will sell a LOT more tickets then adding one good player (lets be real, Jason Bay isn’t even a great player, and no superstar). The fact remains that be refusing to spend a few million dollars more fortifying your roster, you will lose many million more in lost revenue when nobody is coming to games in August.

The Downfall of the Mets

This is a hilarious video parody of a Mets front office meeting. How scary is it that by years end the Knicks could be in a better shape as a franchise then the Mets? Ouch.

Why the Wilpons are good for the Mets

fred and jeff wilpon ownership of the metsAt first glance you are probably saying “Say what?”  This is the same guy that slams the Mets hierarchy on a regular basis.  I definitely have many gripes with the ownership and front office, but recently I have been thinking about it and I have come to the conclusion that the Wilpons might just be good for the Mets.

What got me thinking about this change in tune was reading about the ownership mess over in Los Angeles with the Dodgers.  Talk about embarrassing.  I am sure your aware that the owners of the Dodgers were a married couple, and now they are getting divorced.  What this means is a lot of things that were never meant to be seen by us “common folk” get to see daylight in the court proceedings.  The jewel of this info thus far, is the ownerships plan to not increase payroll, and double the revenues.  Well I don’t have to own a baseball team to know that this basically boils down to an ownership plan to not spend any money to improve the team, all the while doubling prices.  Really classy.

This got me to thinking about our beloved Wilpons.  Recently Fred has announced that they have absolutely no plans to ever sell the team.  He even goes on to say that this team will be in his family for generations to come.  Now I like many of you cringed upon hearing this.  But on further thought I don’t think this is really a bad thing.

Lets be honest for a minute, this team has actually been pretty active on the free-agent front over the last few years and been in the top 5 in payroll for a while now.  These things take serious, long term, commitments by the ownership to occur.  Ownership doesn’t go out and scout the talent, nor do they coach the team.  The most they can do is hire the correct people and leave it in their hands.  This is where they Wilpons fall under the most blame.  It’s not a real argument at this point to say they have a horrible track record for hiring the wrong people.  It’s becoming very apparent that Omar Minaya has done a very poor job in his tenure here with the Mets.  And lets not even get into the whole Tony Bernazard fiasco.

The problem with the Wilpons is quite plainly that they are not baseball people.  They sure do think they are, and this is what separates the good owners from the bad.  George Steinbrenner is the best example of this.  For years he insisted on making the big decisions and often time fouled things up.  But due to the forced suspension by Major League Baseball he was forced to keep his hands off and look what happened?  The people he put in place constructed the nucleus of a championship team that is still playing today.  This Yankees run didn’t start until ownership took a hands-off approach and entrusted the baseball decisions to their baseball people.  I have to hope that eventually the Wilpons, and Jeff in particular will learn this lesson.  In fact I think they already have.

What they need to do is start hiring the right baseball people, and as we all know another window of opportunity is probably going to be real soon.  Give us an A+ GM here with the Mets and you have to admit that they do a good job of giving him plenty of resources to get the job done.

Another area this ownership needs is to refocus on the farm system.  The Mets system is largely a joke.  They like to say it’s due to big trades that have depleted the system like the Johan Santana deal.  But my reply to that is, those traded prospects haven’t done anything in their new setting either.  The organizational lack of depth is appalling.  It became painfully obvious last year and I fear we may have to learn that lesson again this year.  This can only be remedied by a deep focus on the farm system.

All in all I really can’t blame the current state of this organization on the Wilpons, at least not solely.  They can’t go out and take at bats for the team when it’s choking those two straight seasons.  If they are smart and prudent and hire good people this next go around, I think there is a chance that in years to come the Wilpons could be portrayed as good owners.  They aren’t afraid to spend money, and they do offer stability, which are two things that really aren’t all that common these days in Major League Baseball.

I guess my bottom line is that while they can really drive us nuts, lets not lose sight of the fact that it certainly could be a lot worse.

Are the Mets Broke?

The latest buzz making the rounds is once again that the Mets are broke.  Not just the Wilpons, but the Mets.  Ken Rosenthal and John Morosi are reporting for FoxSports.com that the Mets are out of money:

The Mets, outbid by the Padres for catcher Yorvit Torrealba, are out of money, major-league sources say — a curious position for a team that spent $66 million on outfielder Jason Bay knowing it had other needs.

Now as much as we all in Mets-land may bitch and moan about how cheap the Wilpons (I personally love the term Coup-ons) have acted, it just doesn’t really add up.  I tend to agree with Matthew Cerrone over at MetsBlog.com when he says that:

i can’t say whether this is true or not; but, it is peculiar that the team had earmarked $12 million for Joel Pineiro and Bengie Molina, yet, since the two players signed elsewhere, there has been talk of the team being unable to spend on players like Ben Sheets or even Yorvit Torrealba or barajas, who would cost only a million bucks or so…

…that said, i do not think money is reason for not signing John Lackey or pineiro, or molina, all of whom i think they had a set value on, and refused to go beyond… i understand how this could be viewed as being cheap, but i think it’s actually a matter of not overvaluing mediocre talent…

I tend to think that despite the swirling rumors the Mets aren’t actually broke.  At the worst maybe they have a bit of a liquidity problem, but hell who doesn’t right now?  I just think they up in their lofty offices think they have a plan and think are so just so smart and have placed value on players and are trying to play hardball.

They have won with this stance before if you remember K-Rod from last off season.  But the problem is that this team has many more holes then was perceived last year.  For a team with several gaping holes in their roster, it’s starting to look very strange that they spend $66 million on Jason Bay, and that taps out their war-chest to fill other holes?

Truth is I can’t believe this because if true, things are much worse over at CitiField then even I could imagine.