Share to Facebook, Share to Twitter, Share to Linkedin - these platforms witnessed a heated battle for the top free agent in baseball history. The usual big spenders like the New York Yankees, Los Angeles Dodgers, and Boston Red Sox were in the mix, but none could outshine Steve Cohen, the league's new heavy hitter. Cohen, with an estimated net worth of $21.3 billion, twice that of any other MLB owner, agreed Sunday night to a 15-year, $765 million deal with 26-year-old outfielder Juan Soto. The contract averages $51 million a year with no deferred money, making it more lucrative than Shohei Ohtani's $700 million deal with the Dodgers last winter.

On Paper, the Math Doesn't Add Up

It seems that on paper, the Mets' decision to sign Soto for such a large sum doesn't make immediate sense. The Mets generated $393 million in revenue last year according to Forbes estimates, far behind their crosstown rivals the Yankees who led the league with $679 million. However, Cohen, who made his fortune at SAC Capital and now runs Point72 Asset Management, doesn't need to worry about such financial details. His Point72 has $35 billion in assets under management just six years after opening to outside investors. In 2016, he was temporarily barred by the SEC due to insider trading charges at SAC Capital, but his own fortune remains substantial. He earns 2.85% management fees and up to 30% performance fees annually on the rest.

The Dodgers' Financial Success

The Dodgers, who defeated the Yankees in the 2024 World Series and spent over $1 billion last offseason on free agents like Ohtani and Japanese pitcher Yoshinobu Yamamoto, still managed to rake in $549 million to cover their expenses. This was largely due to a 25-year, $8.4 billion local TV deal they landed in 2013. While most MLB teams make a modest profit, the Mets booked an operating loss of $292 million according to Forbes estimates.

Cohen's Wealth and Competitive Advantage

Cohen's wealth gives him a significant competitive advantage. Three decades as one of Wall Street's most successful hedge fund managers has provided him with a cushion to withstand a large loss on his baseball team. His Point72's $35 billion in assets under management shows his financial strength. John Malone, the cable TV mogul who nominally owns the largest stake in the Atlanta Braves with an estimated fortune of $10.8 billion, is the next-richest MLB owner. But in MLB, where there is no salary cap, an owner with unlimited wealth can spend as much as they want. The league does have a "competitive balance tax" on every dollar spent on player salaries above a predetermined threshold, but for the Mets, it's more of a minor setback. In 2025, that amount will be $241 million, and the Mets' payroll has exceeded $300 million in the last two years. The Associated Press reported their tax bill for 2023 alone was over $100 million, but it's a small amount for Cohen.

Cohen's Goals and Early Returns

When Cohen bought the Mets for $2.4 billion in 2020, he made it clear that winning was his priority. In his introductory press conference, he said it would be "slightly disappointing" if the team didn't win a World Series within three to five years. Next year will be the Mets' last chance in this time period to win their first championship since 1986. However, his ownership has already paid off with two playoff appearances in the last three seasons. This year's World Series matchup between the Dodgers and Yankees showed that spending on top-dollar players can lead to championship teams. The late George Steinbrenner made the Yankees the most valuable team by signing talent like Alex Rodriguez and Jason Giambi to big contracts. Steinbrenner's heirs, led by Yankee Global Enterprises chairman Hal Steinbrenner with a net worth of $1.5 billion, offered a $760 million, 16-year contract to keep Soto in the Bronx. Cohen's winning bid for Soto shows his determination to compete with the Yankees and others. He's no longer the "little brother" and is taking aim at the top. Mets fans are hopeful with a generational hitter like Soto joining the team.

Ensuring Fan Engagement

Cohen will still face losses in the short term, but he's ensuring that fans help him recoup some of his investment. Before officially announcing the signing, the Mets put single-game tickets for the 2025 season on sale on Monday morning. This shows his commitment to the team and the fans.