Fred Wilpon
Encyclopedia
Fred Wilpon is a real estate developer, baseball
executive
and the majority owner of the New York Mets
.
sold the team, with Doubleday & Co. holding the remaining interest. In , Doubleday president Nelson Doubleday, Jr.
sold off his company, and he and Wilpon each bought a 50 percent stake in the Mets to become full partners. In 2002
, the Wilpon family purchased the remaining 50% of the Mets from Doubleday for $135 million.
Wilpon served as president of the team between 1980 to 2002, as Chief Executive Officer since 1980 and as Chairman of the Board since 2003. Wilpon currently serves as Chairman of Sterling Equities. His son Jeff
is the COO
of the Mets and executive vice president of Sterling.
Wilpon is a 1958 graduate of the University of Michigan
.
which was lost when the Ponzi scheme
collapsed in December 2008. It was reported that Wilpon had "lost" about $700 million because of Madoff, which has led to speculation that he may be forced to sell the team. Since then Wilpon has said that his losses were "substantially less" than that figure. Reports later surfaced that Wilpon and his family actually made about $300 million with Madoff and had not lost money as previously reported. As a result in December 2010, Wilpon was named in a lawsuit filed by Irving Picard
on behalf of the victims of Madoff's investment scandal
and on January 28, 2011 Wilpon issued a statement seeking “one or more strategic partners” interested in buying 20 to 25% interest in the Mets to offset pending losses due to litigation (which may total up to $1 billion). Wilpon and his partner and brother in law Saul Katz were involved in another Ponzi scheme which was orchestrated by Samuel Israel III
and they were forced to pay $13 million to investors when Israel's hedge fund collapsed. It was revealed that Wilpon utilized Madoff in running the Mets' finances. It became a common practice to negotiate deferred money into players' contracts and then put that money with Madoff to invest because they were able to make money for themselves before paying players. The lawsuit also contends that Madoff funds were used to cover team expenses such as payroll and its minor league club
in Brooklyn, as well as financing the creation of the cable network SportsNet New York
and Citi Field. In an interview while in prison, Madoff claimed that Wilpon "knew nothing" about his Ponzi scheme. After it was reported that Major League Baseball
loaned the Mets $25 million in November 2010 to shore up their finances, Wilpon is now willing to sell up to a 49% ownership stake of the team at a cost of $200 million. On May 26, 2011, it was reported that Wilpon has agreed to sell a minority share of the Mets to David Einhorn, president of the hedge fund Greenlight Capital
, but ended negotiations on September 1.
on Brooklyn's Lafayette High School
baseball team. Wilpon and Koufax remain close friends, with Koufax an annual visitor at the Mets' spring training
facility in Port St. Lucie, Florida
.
Baseball
Baseball is a bat-and-ball sport played between two teams of nine players each. The aim is to score runs by hitting a thrown ball with a bat and touching a series of four bases arranged at the corners of a ninety-foot diamond...
executive
Executive officer
An executive officer is generally a person responsible for running an organization, although the exact nature of the role varies depending on the organization.-Administrative law:...
and the majority owner of the New York Mets
New York Mets
The New York Mets are a professional baseball team based in the borough of Queens in New York City, New York. They belong to Major League Baseball's National League East Division. One of baseball's first expansion teams, the Mets were founded in 1962 to replace New York's departed National League...
.
Biography
Wilpon bought a one-percent stake in the Mets in 1980 when Charles Shipman PaysonCharles Shipman Payson
Charles Shipman Payson was the owner of the New York Mets of the National League from through . In 1975, he inherited the club upon the death of his wife, Mets founder Joan Whitney Payson....
sold the team, with Doubleday & Co. holding the remaining interest. In , Doubleday president Nelson Doubleday, Jr.
Nelson Doubleday, Jr.
Nelson Doubleday, Jr. was the president of Doubleday. He was instrumental in the company's purchase of the New York Mets in 1980. He served as chairman of the Mets' board during the team's rise to its 1986 World Series title. In 1986, he and Fred Wilpon bought the team from the publishing company...
sold off his company, and he and Wilpon each bought a 50 percent stake in the Mets to become full partners. In 2002
2002 in baseball
-Major League Baseball:*Regular Season Champions*World Series Champion - Anaheim Angels*Postseason - October 1 to October 27Click on any series score to link to that series' page....
, the Wilpon family purchased the remaining 50% of the Mets from Doubleday for $135 million.
Wilpon served as president of the team between 1980 to 2002, as Chief Executive Officer since 1980 and as Chairman of the Board since 2003. Wilpon currently serves as Chairman of Sterling Equities. His son Jeff
Jeff Wilpon
Jeffrey Scott Wilpon is the COO of the New York Mets baseball team and the executive vice-president of Sterling Equities. Jeff is the son of New York Mets principal owner Fred Wilpon. Jeff and other Wilpon family members invested with Bernard Madoff's ponzi scheme that collapsed in 2008...
is the COO
Chief operating officer
A Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...
of the Mets and executive vice president of Sterling.
Wilpon is a 1958 graduate of the University of Michigan
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
.
Madoff investment scandal
Wilpon was one of the investors who invested a significant amount of money with Bernard MadoffBernard Madoff
Bernard Lawrence "Bernie" Madoff is a former American businessman, stockbroker, investment advisor, and financier. He is the former non-executive chairman of the NASDAQ stock market, and the admitted operator of a Ponzi scheme that is considered to be the largest financial fraud in U.S...
which was lost when the Ponzi scheme
Ponzi scheme
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation...
collapsed in December 2008. It was reported that Wilpon had "lost" about $700 million because of Madoff, which has led to speculation that he may be forced to sell the team. Since then Wilpon has said that his losses were "substantially less" than that figure. Reports later surfaced that Wilpon and his family actually made about $300 million with Madoff and had not lost money as previously reported. As a result in December 2010, Wilpon was named in a lawsuit filed by Irving Picard
Irving Picard
Irving H. Picard is a partner in the law firm Baker Hostetler. He graduated from the Wharton School, University of Pennsylvania, with a B.S. degree , from Boston University School of Law with a J.D. degree , and from the New York University School of Law with an LL.M. degree in 1967, and was...
on behalf of the victims of Madoff's investment scandal
Madoff investment scandal
The Madoff investment scandal broke in December 2008 when former NASDAQ chairman Bernard Madoff admitted that the wealth management arm of his business was an elaborate Ponzi scheme....
and on January 28, 2011 Wilpon issued a statement seeking “one or more strategic partners” interested in buying 20 to 25% interest in the Mets to offset pending losses due to litigation (which may total up to $1 billion). Wilpon and his partner and brother in law Saul Katz were involved in another Ponzi scheme which was orchestrated by Samuel Israel III
Samuel Israel III
Samuel Israel III is a former hedge fund manager for the fraudulent Bayou Hedge Fund Group, which he founded in 1996. He was born in Louisiana....
and they were forced to pay $13 million to investors when Israel's hedge fund collapsed. It was revealed that Wilpon utilized Madoff in running the Mets' finances. It became a common practice to negotiate deferred money into players' contracts and then put that money with Madoff to invest because they were able to make money for themselves before paying players. The lawsuit also contends that Madoff funds were used to cover team expenses such as payroll and its minor league club
Brooklyn Cyclones
The Brooklyn Cyclones is a minor league baseball team in the Short-Season A classification New York - Penn League, affiliated with the New York Mets. The Cyclones play at MCU Park just off the Coney Island boardwalk in the New York City borough of Brooklyn....
in Brooklyn, as well as financing the creation of the cable network SportsNet New York
SportsNet New York
SportsNet New York is a New York City-based regional sports cable network which airs in the New York metro area and all of New York state, and nationwide via satellite. It is owned jointly by the New York Mets, Time Warner Cable, and NBCUniversal...
and Citi Field. In an interview while in prison, Madoff claimed that Wilpon "knew nothing" about his Ponzi scheme. After it was reported that Major League Baseball
Major League Baseball
Major League Baseball is the highest level of professional baseball in the United States and Canada, consisting of teams that play in the National League and the American League...
loaned the Mets $25 million in November 2010 to shore up their finances, Wilpon is now willing to sell up to a 49% ownership stake of the team at a cost of $200 million. On May 26, 2011, it was reported that Wilpon has agreed to sell a minority share of the Mets to David Einhorn, president of the hedge fund Greenlight Capital
Greenlight Capital
Greenlight Capital is a hedge fund which was founded by David Einhorn. Einhorn's commentary on the financial position of Lehman Brothers in early 2008, and Greenlight's short selling of Lehman stock, foreshadowed Lehmans' collapse....
, but ended negotiations on September 1.
Personal life
As a teenager Wilpon was a teammate of Baseball Hall of Famer Sandy KoufaxSandy Koufax
Sanford "Sandy" Koufax is a former left-handed baseball pitcher who played his entire 12-year Major League Baseball career for the Brooklyn/Los Angeles Dodgers...
on Brooklyn's Lafayette High School
Lafayette High School (New York City)
Lafayette High School is a large secondary school located in the Bath Beach section of Brooklyn, New York City, New York . It is currently one of the low performing high schools of the city and is operated by the New York City Department of Education.-History:...
baseball team. Wilpon and Koufax remain close friends, with Koufax an annual visitor at the Mets' spring training
Spring training
In Major League Baseball, spring training is a series of practices and exhibition games preceding the start of the regular season. Spring training allows new players to try out for roster and position spots, and gives existing team players practice time prior to competitive play...
facility in Port St. Lucie, Florida
Port St. Lucie, Florida
Port St. Lucie is a city in St. Lucie County, Florida, United States. The population of Port St. Lucie was 88,769 at the 2000 census but grew rapidly during the 2000s. In 2009 the State of Florida estimated the City's population at 155,251. Port St. Lucie forms part of a metropolitan area called...
.