As part of the settlement announced in New York federal court Monday, Mets owners Fred Wilpon and Saul Katz won't have to make a payment for three years but turn over any recoveries from their claims against the bankruptcy estate, The Wall Street Journal reported.
After three years, the Mets will make payments to the estate to cover any amount that exceeds their claim recoveries, with Wilpon and Katz personally guaranteeing as much as $29 million.
Irving Picard, appointed by the court as the trustee for Madoff's firm, sued Wilpon and Katz, their families and business associates for more than $300 million they invested with Madoff, accusing the owners of "willful blindness," or ignoring warnings that Madoff was defrauding investors while they invested with him over many years.
Wilpon and Katz said they had no indication of trouble, countering that Picard lied and and distorted evidence.
Katz and Wilpon both said outside the courthouse, where jury selection in the trial was to start Monday, they were "very pleased" with settlement, which must be approved by April 13.
As part of the settlement, Picard agreed to drop his claims of willful blindness.
"The settlement we announced in court confirms that Mr. Wilpon and Mr. Katz and their partners acted at all times in good faith and didn't act willfully blind," said Robert Wise Jr., a lawyer for the owners.
The agreement also covers a ruling last week that the Wilpon and Katz and their associates must return as much as $83.3 million.
Madoff is serving a 150-year prison sentence. He pleaded guilty to fraud in 2009.