Monday, August 8, 2022

Steve Cohen tries to tell Mets fans that GameStop isn’t his Madoff moment

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Mets fans got nervous this week when majority owner Steve Cohen’s hedge fund disbursed $ 750 million to help cover the losses of another fund in the GameStop / Reddit / WallStreetBets share squeeze. The bailed-out fund still went bankrupt.

Is it back to the bad old days of the Wilponzis? Will Cohen have to lower his pay if he finally loses his shirt on the failed shorts? Cohen had a simple response on Twitter Tuesday: Uh, no.

When asked if Cohen Point72 Asset Management’s cash advance to Melvin Capital would ‘affect’ the team’s payroll, Cohen responded this way:

Cohen, whose estimated personal wealth of $ 14 billion is thrown away as if he was going to pay players out of his own pocket, essentially reminded fans that the Mets and Point72 operate on separate piles of money.

MORE: Francisco Lindor Trade Notes

But it’s understandable that fans think Cohen had a Bernie Madoff moment when he transferred three-quarters of a billion dollars to Melvin Capital, which is run by Gabe Plotkin, a former Cohen employee, in exchange for a “share. uncontrolled income “in Plotkin’s business. Another company threw an additional $ 2 billion at Melvin to save her. That money, and billions more, disappeared on Tuesday as GameStop’s stock price continued to soar. Now, Melvin Capital will declare bankruptcy as early as next week.

As fans know all too well, the former Mets majority shareholder – Fred Wilpon and Saul Katz – had huge cash flow problems for years after being stung by Madoff’s Ponzi scheme.

There was some solace on Wednesday when the Mets reportedly agreed to a one-year major league contract with free left-hander Aaron Loup. The club have made four main free agent additions this offseason under Cohen: Wolf, James McCann, Trevor May and Jose Martinez. He’s also in the running for right-hander free agent Trevor Bauer, whose salary will eclipse the combined hold of those four, and they’re still in the market for a full-time center fielder, like Jackie Bradley Jr.

Additionally, there was the trade for Francisco Lindor and Carlos Carrasco, who will earn around $ 34 million combined in 2021.

The Mets Competitive Balance Tax payroll was estimated at $ 182.9 million, well below the $ 210 million tax threshold, prior to the Wolf deal. according to Cot’s contracts. (UPDATE: The Mets slashed that amount by $ 5.2 million later Wednesday by trading southpaw Steven Matz to the Blue Jays.) Bauer will definitely take them over that line. That’s a pretty good indication that Cohen isn’t shy about pinching pennies like Wilpon and Katz did.


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