After a deal with Steve Cohen to purchase the New York Mets was nixed last year due to issues of continued team control, the Wilpons looked for other suitors only to end up back with the hedge fund billionaire. According to Sportico, the deal values the Mets at $2.42 billion. Cohen will assume 95% ownership of the team, increasing his stake from 8%; the Wilpon family will retain control of the remaining 5%. The transaction will not include the Mets’ regional sports network SNY, a cash cow currently controlled by the Wilpons’ Sterling Equity with a 65% share.
The sale is the largest in MLB history, and given the franchise’s $391 million value at the time of the Wilpons’ purchase in 2002, it’s also the most profitable in terms of total dollar amount. Here are MLB franchise purchase price valuations since 1988 in chronological order:

And here’s profitability compared to the previous valuation:

In terms of annual profits based on the valuation of the franchise when it was bought and sold, the Mets’ deal is a little closer to the middle at around 9%. There’s an argument that being only a little bit above average isn’t great, though being above-average on a debt-laden team in the middle of a pandemic looks to be a pretty positive outcome. Here’s where the Mets’ sale stacks up in terms of its annual increase in value after inflation:

Before we get to Cohen, let’s take a look back at the Wilpons and how we got here.
From Initial Investment to Full Control
Fred Wilpon reportedly originally bought 5% of the Mets in 1980 when Doubleday & Co. purchased the team for $21.1 million. Six years later, Nelson Doubleday and Wilpon joined forces to purchase the club at a value of around $80 million. It wasn’t until 16 years after that that Wilpon and his family gained full control of the club, though the purchase was not without controversy. The sale price valuing the club at $391 million was set by an appraiser and initially contested by Doubleday. He argued against the price due to a number of factors ranging from:
Wilpon being “in cahoots” with baseball to force him to accept less-than-market value for his 50 percent of the Mets to baseball “manufacturing phantom operating losses” as part of its labor strategy.
Doubleday relented on his claims after the Wilpons agreed to quadruple the money owed at the time of sale from $28 million to $100 million. In the end, the Wilpons paid just $135 million to purchase the other half of the club from Doubleday due to team debt that was subtracted from the purchase. For about $1 million in 1980, $40 million in 1986, and $135 million in 2002, the Wilpon family gained full control of the Mets. Read the rest of this entry »