Key Points in settlement of Picard v. Mets

What were the key points

of the settlement?

The owners of the New York Mets agreed to pay back $162 million in fictitious profits they received from Bernard Madoff's fraud. Trustee Irving Picard agreed to allow the owners, including Fred Wilpon and Saul Katz, to bring a claim for $178 million in losses they suffered in the fraud.

Do the Mets owners have

to pay all at once?

No. Under the settlement, they pay nothing out of pocket until the end of the fourth year. Picard can redirect funds he collects for the Mets' owners losses to cover what they owe under the settlement. If there is still money owed after the third year, the owners pay up in two annual installments after the fourth and fifth years. Wilpon and Katz guarantee payment of up to $29 million.

How much will the owners

actually have to pay?

It depends on how much Picard recovers from all those who profited by Madoff's fraud. Under the math dictated by the Securities Investor Protection Act, the trustee would have to recover 91 percent of the total losses to offset the Mets' owners settlement obligation.

Can the owners theoretically

get money back?

Possibly as much as $16 million.

Source: U.S. Bankrutpcy court filings, District Court filings, Madoff Trustee website, interviews.