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With the woman who wrote the book on Madoff and the man who ran the Mets baseball business -- walk over and welcome -- Steve Phillips a former general manager of the Mets and also.
-- and our board this year and -- her book.
Too good to be true rise and fall Bernie Madoff welcome to both of you thanks for coming and to do this as a said -- I'm gonna talk a lot of baseball the premise here is that the Mets.
For the future at least it's going to be better they get their act together maybe they were forced to do it but before we do that -- -- have -- set up the story because you know what you wrote a book about it.
Bernie Madoff the dealer is that pretty many people are ready or at least the banker he did that he they invested their money the -- they would Madoff and did pretty well.
They had about 400 counts.
They asked everyone and their brother I think from an organization.
Including -- To wound invests with Bernie Madoff yeah because -- very consistent returns but 10% a year -- 11% and never had a down year.
Most like back then Steve you're there.
Well -- I was -- -- front office for thirteen years -- her Bernie Madoff name every week for thirteen years added that he was an investment vehicle for the organization.
With the deferred compensation they would show up an account yet the fund accounting deferred money -- over million dollars -- deferred and had accounts with Bernie bill to do it.
So I heard his name quite a bit and they knew that he was part of the investment process that's what I wanna talk about the deferred -- -- bid take great financial story and when I look at sports.
And but -- brought it up the U grass to invest for Madoff.
I did they asked me if you know Fred -- -- a look at some -- we have some money set -- what did you an account with Bernie and I asked mister wolf how is he.
Housing was somewhat -- every right else and they said he will -- then -- listed his resume about all these great things about.
And Fred clearly.
Highly respected Bernie Madoff.
Adored him they were personal friends -- think that's the stuff the Ponzi schemes are made up that loyalty to the person would stop questioning the results -- moved its.
About one by the way a lucky that that the -- of trades terrific work by you -- both look now the other thing you might wanna talk about this but -- A what you look at this and Steve obviously reacted -- Vinny yep you got you the GM in 1999 guys one of the -- -- contract right you have an option they could.
Pay five point nine million dollars but this area to buy out -- -- -- country could give -- a -- some but -- made -- what you talked about.
The -- -- up over the long term because they defer to -- talked about the compensation.
It -- a total of thirty million starting last year but he makes a million plus a year till the year 2035.
Knowing what you know about Madoff that probably seem like pretty good deal of.
Time well let -- the Mets organization.
I know nothing about this -- but I do know that they have a lot of overhang deaths.
And -- of being one of them right -- also have about 400 million dollars.
I believe each from two separate banks one of those lines is coming due in 2014.
And another 2015.
In the meantime they've sold about 40% of the team and that's been great -- Bizarre premise about how the mets' Citi admit may have saved the Mets -- -- ruining what that comment because we'll get to the baseball the second the financials.
A mess you're saying even though that -- -- this case -- I think.
-- the settlement was great for them I think it's cut them it took them to a whole new level declared the company they've around doing.
And you know now basically it's just a start over -- a -- there.
It is -- a lot of -- all right let's talk about this let's talk baseball we say some numbers and then you can tell me whether you think we're right that the Mets are on the right track commune.
If you look at their -- -- start 2009 minutes payrolls 135 million right second to the Yankees so 132 million in 2010.
Questions 120 million see a lot of money going out and the record is not reflective of what it should be seventy wins.
And in the big -- 79 the next year's 77.
Last year -- it's not how much you spend obviously it's how you spend it so now they embrace these new ways that new anymore but the money ball kind of philosophy.
He built through the draft to build -- with young pitching all that kind of thing they got the guy Matt hardy who they're high on.
They've made some trades got rid of -- -- brought another top prospect there.
-- Zack Wheeler.
So when you find these good yeah inflation lock him up I talked to John -- to play a little bit about -- -- but he five years 25 million could young pitcher two option years.
Do you think the Mets are on the right track now that law.
Term this could be.
You would you wish you the GM again you know existing Aronson that you know much of his other methods -- -- I don't know whole lot about this earlier but I thought that's now.
Very good or they are the right check of what happens is rebuilding its dirty word New York you know yes you do that -- they want winning now is the key.
That's what the fans want that's what the media wants -- and that's what they have to spend spend spend.
Having money is -- general manager or burned a hole in your pocket if you haven't you wanna spend it what you do is you spend the money and the next best guy available.
But the long run you might be better off holding some of that money and I think the -- -- the position right now.
To rebuild and they have an excuse to do it to sell the the fans you could've done that that you couldn't do it mean when you're there are we compatible we were building the team up we want to World Series we had to try to maintain a level.
It when you have money you make stupid decisions sometimes you invest in guys.
That you shouldn't make -- I I offered my camp to -- -- seven your 105 million dollar contract is worth come out of my mother thought only got what did you say.
I what do I do in the think I didn't take it.
But we got what I -- Because I felt like we want to World Series he was our guy we -- he was the best -- available here in New York that's what the market said New York you know what you try to bring that guy and plus the natural position with the -- across town in my mind it's one of the toughest sports franchises -- because the standards of the same price expectations of the same but you don't have the same resources of the a look at -- Right now sandy Ellison's gym in the -- look at the -- they've made now.
A what the -- -- on -- to just went through the they getting a good young prospect.
Get outfielder -- student not Beltran but he'll probably turn -- be pretty good offensive player -- that's the kind of move that Smart.
Business no absolutely what did the best thing the best can do is take all part they start to rebuild.
When you have bad money you have to try to work -- -- up making more bad decisions to try to get around that money.
The -- you do the Florida Marlins -- a good example they build it up they win.
They take all apart -- that build them up they win.
The -- -- -- right now we're seeing the oldest and lead them to build a build this team from the ground and not break it up you know if you have did network the TV network and all the TV revenue coming in you could do it long term with that philosophy -- there's no question about that in the first systems the -- and all this and with the macro from small market is the perfect general manager.
To run the that's right -- ask he has one more question for wrap this up this has been grades -- good discussion the job.
The -- given that you mentioned a settlement -- of the Mets settled this stuff case out of court that they basically that they knew or should've known about the Madoff mess.
You know the stuff Aaron -- what effect.
We're able to settle with the trustee Irving Picard.
And neither admitting or denying.
They only have to pay a 162 million.
And think that's fair you'd think they knew that's based on that's what the judge and a court decided.
They settled with the trustee and this is again this is a do over for them but -- -- they've been able to sell part of the team and that's been able to establish a valuations -- There's any reason to believe dumb and there -- that Fred Wilpon -- catch anybody knew that Madoff was.
-- I listen I live that I was there -- it for thirteen years ever weaker heard her Madoff name.
I know Fred Wilpon Saul Katz Jeff Wilpon they're do the next right thing kind of people in it practically.
When I was in there executing deals in deferring compensation there was nothing to raise an -- for me we -- -- accountants there was some secret deal out there.
And Fred would say if the market does this what kind of money we're that -- for -- market does this will go he didn't have anything that he knew -- anticipated.
He would get his return I don't think for 12 -- -- any idea.
-- would remain offers do not Steve Phillips was there and Aaron -- wrote a book about it -- both great thank you very much for coming and they appreciate it.
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