As the lockout drags on, slowly but surely moving in the direction of a delayed start to the season, it has provided some time to reflect on the moves Mets GM Billy Eppler made before Baseball shut down. They were exciting moves. They were the types of signings that Mets fans have been begging to happen for years.
Eduardo Escobar, 2 years, 20 million dollars and a club option in year three. Mark Canha, 2 years, 26.5 million and an option. The news on these two signings hit first and Mets fans said, “typical Mets”. Then came Starling Marte at 4 years, 78 million and Mets fans said, “well that’s something”.
Then came the earth shattering and unexpected. A signing that seemed virtually impossible just earlier that year. Max Scherzer, signing for 3 years and 130 million dollars with an opt out after year two. As one Mets fan said, “Scorched Earth!”
Then came the lockout and all we have to think about is that crazy few days right before it.
Mets fans should be excited by those days. Eppler had the ability to do, with Steve Cohen’s money, what we knew innumerable GM’s under the Wilpon family couldn’t do. Spend and spend big. It was vindication. It was what we all wanted.
But beware the golden apple.
Business boils down to being in the black or the red. Making money and losing money. One of the key concepts of business is that when a business is not profitable, it can be problematic to continue to put money into it. It’s the idea that money is supposed to boost and build a business, but if the business is sucking funds and not bearing fruit, it’s better to cut and run.
Cohen is a businessman. He understands that his money should generate results. It’s what has made him one of the richest men in the world. It’s why Eppler has an open checkbook. But if these moves don’t generate results, that checkbook might not be as open two years from now.
Let’s be clear about that as well. Eppler has at least two years to show results. Year one under Cohen was a wash. Sandy Alderson was unable to put together a front office. The Mets were unable to retain their top draft pick. The Mets fell apart late because the team was basically playing with house money early in the season.
Now with a front office in place, Cohen has allowed the money to flow. But if Scherzer finally hits a wall, Canha proves to be a fourth outfield instead of a starter, Marte takes a step back now that he’ll be 33 to start the season and Escobar shows that his power numbers over the last two seasons were not indicative of his current playing ability, then that’s going to be a lot of money dumped into a team that wasn’t all that profitable last year. If the choice to sign Canha over retaining Michael Conforto results in Conforto winning an MVP somewhere else, the problem grows larger. If the ultra exciting, but aging duo of Scherzer and Jacob deGrom don’t live up to expectations and the Mets are sub-500 again, will the business man in Cohen rethink how Eppler is spending his money? Will Cohen react impulsively as other owners have and put the Mets on an endless GM and manager cycle?
There is obviously much more to this idea than Scherzer’s 130 million dollars. There is a draft in which the Mets have a bevy of picks. There is the development at the top of the Mets farm system, with players like Brett Baty, Ronnie Mauricio and Mark Vientos all closing in on the major league club. There are plenty of places where Eppler can shine and show his deep-pocketed boss that success is on its way, both in the short and long term. Lets just hope that the big contracts issued help that argument rather than challenge it.
Cohen did react impulsively when he ordered the Baez trade. I’m hoping Cohen can be a little more patient. Also, Eppler has always spent in California, but it was on big splashes – kind of how the Wilpons did it.
I’m hoping that the Mets can build a solid team that has a chance every year, not necessarily go after it blindly every year. We know it takes luck, look at the Braves; we know injuries happen, look at … you know who; even if you win your division nine years in a row, stuff happens during the playoffs and you only have one championship because your manager over-manages or you face a DeGrom; or, you win 106 games and another team steps in it big time and wins 107 in your division, so you’re the wildcard. Winning isn’t guaranteed, but losing can be.
Eppler did a very good job with the Escobar and Canha contracts in money, years and options. The Marte contract was good with the money but it would have been better with 3 years and an option. Then again, maybe there was no choice and he wouldn’t have signed. The Scherzer contract was an overpay but Cohen wanted Scherzer and he negotiated it and he didn’t care. Cohen has stated that he want to win the World Series.
If your doomsday scenario develops, than Eppler will probably never see the end of his four year contract and Cohen will get someone else to spend his money. If Eppler gets near a World Series then Eppler will be safe. In either case, Cohen won’t stop spending his money.
Cohen business in 72Point. His passion and hobby is his $1 billion dollar art collection with Picasso, Warhol, Pollock and other pieces. His net worth was 14 billion dollars. It takes a one thousand, thousands, to make a million. It takes a thousand millions to make a billion. So Scherzer contract is .3 % of Cohen’s worth. His other passion is the Mets. Just like his art collection, he wants to spend money on the Mets… and win a championship. This should make the Met fans ecstatic! Besides, he can sell to team any time and make more money than he bought it. Although, I don’t think he will.
Cohen is an investor and the payouts for owning sports franchises is wildly outpacing the stock market. These guys are making crazy money.
In addition, the New York Mets were a very poorly run franchise, totally undervalued. The Wilpons were the worst on so many levels. Cohen understands that the Mets should be worth a lot, lot more money — and will be, soon.
But, sure, yes, he seems to like the Mets and isn’t afraid to spend some money.
I heard a good one recently, re: the difference between millionaires and billionaires. Think of it in terms of time. A million seconds represents 12 days. A billion seconds is 32 years.
Thanks Jimmy. You just made me feel like about 45 minutes.
From what I have read, the Wilpons got 5% of the team in 1980 for about $1 million, 50% in 1986 for about $40 million, and the balance in 2002 for about $135 million. That totals around $175 million vs a sale price of about $2.5 billion. That’s a pretty good return, despite the debt, even for “bad” owners.
If you’d told me in October we would be where we now are, I’d have surely taken it. Too bad the lockout happened, but Cohen’s money is such a nice ace in the hole… it’s there when the need arises…
I doubt that the Mets are an investment for Steve Cohen. More like a passion. Much more important to him than an investment. And he really wants to win… mediocrity is losing.
This is clipped from a “Sportco” article I found after a ten-second search:
>> Since 1991, the value of teams in the NBA, NFL, NHL and MLB, has grown 12% annually, handily besting the stock market’s 8% annual growth in that time. Amazingly, that’s become a problem for owners. <<
Consider, again, that the Mets were a pathetically run franchise in possibly the world's richest marketplace. It was like a drab hotel alongside Central Park in dire need of renovation. You do that because you love the hotel, sure, but also it makes huge business sense.
I think Cohen does very well with this deal.
As my pal says, he didn't make his billions as an investor by being stupid.
Kind of why I buy AAPL stock… I want a tiny tiny piece of the 250 million iPhones that will sell in 2022. Steve can’t really go wrong owning a sports team these days.