The New York Post has broken the news that the Mets are looking for even more loan. They want tens of millions of dollars and all of this money is just to cover the team’s basic operating expenses.
The Wilpons should be focusing on selling a large chunk of the team at this point. It is beyond obvious that the Madoff scandal is greatly impacting the team’s finances.
The article also mentions that the Mets received a $430 million loan from JP Morgan Chase last year. The bank is trying to recruit other banks to put together a loan to help the Mets until the Wilpons sell a majority stake in the team.
Sources are uncertain about if the Mets can actually pay back the loan. They believe this is a very risk move considering the team could lose as much as $50 million this year.
After the Mets received a loan from the MLB, their debt total reached $505 million. Depending on the team’s worth, they could have enough money to secure another loan. It all depends on what the team is valued at.
Payments to players may eventually become an issue if the team cannot secure another loan. This could decimate the team chemistry.
It has also been revealed that banks have been selling some of the Mets debt off form 90 cents on the dollar. They believe that the Mets are a risky investment and are trying to lower their exposure.
The new loan might help the team avoid defaulting on their existing debt. This is quickly turning into a very ugly situation for the team. There will likely be major changes with the organization before the end of the season.