24
2011
Mounting Debt, Falling Revenues, Huge Concerns
An article by 
Richard Sandomir of the NY Times writes that MLB is growing concerned with the Mets’ mounting debt and falling revenues.
But the Mets worry Major League Baseball enough to be seen as a troubled franchise on a short tether. Their $430 million loan on the team is due in 2014. Their $25 million loan from M.L.B. is past due and repayment has been extended. They recently borrowed $40 million from Bank of America.
Their valuable network, SNY, is also heavily leveraged, to the tune of $450 million, a loan that must be repaid in 2015. And the Mets’ Citi Field bond payments leapt from $19 million last year to $43.7 million.
That is a lot of borrowing for a team that lost $70 million last season and had faltering attendance.
The Mets declined to comment on the situation or about allegations made by Howard Megdal of the Journal News in a new eBook entitled “Wilpon’s Folly”, but they did issue the following statement: “We do not publicly address specific issues pertaining to our finances including inaccurate, speculative and ongoing fabrications.”
The column also speculates that while Bud Selig was quick to react to similar situations with the Texas Rangers and Los Angeles Ddogers, “he has indulged Wilpon, a friend and ally for 30 years.”
Selig may never tell Wilpon he has to sell. But Selig could be waiting for banks to grow so concerned that they demand that Wilpon sell the team he has owned, outright since 2002, to recover all they are owed.
If that’s true, Wilpon may still be able to last another couple of years after receiving a $40 million dollar bridge loan to cover upcoming debt payments. Additionally, if the $200 million dollars he expects to raise from selling individual $20 million dollar stakes come through, he may even be able to ride this storm out entirely.
Still the situation is very tenuous and difficult to predict, so in the meantime expect things to get much worse before they get better – if they get better at all.
Meanwhile, Sandy Alderson is on hand to continue cutting payroll and moving as many high-priced players as he can – at least those whose contracts are movable. Wright fits that description to a tee and I expect his days as a Met are numbered.
About the Author: Joe DeCaro
I'm a lifelong Mets fan who loves writing and talking about the Amazins' 24/7. From the Miracle in 1969 to the magic of 1986, and even the near misses in '73 and '00, I've experienced it all - the highs and the lows. I started Mets Merized Online in 2005 to feed my addiction. Follow me on Twitter @metsmerized.
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All I want for Christmas is Wilpon to Sell !!
Please…I want my team back !
Please do not trade Wright- Remember when they traded Seaver—
OFF TOPIC FROM YAHOO
“Texas Rangers catcher Yorvit Torrealba has always played the game of baseball with a lot of fire and a lot passion. Unfortunately, the 11 year big league veteran took that fire and passion too far while playing for Leones del Caracas of the Venezuelan League on Friday.
“After Torrealba took an ugly cut at a breaking ball and missed for strike three, he immediately began a heated discussion with home plate umpire Dario Rivero, Jr over a disputed strike call earlier in the at-bat. The two men jawed face-to-face for a good fifteen seconds before Torrealba struck the umpire in the face mask with the palm of his hand and pushed him away.
“Here’s video of the incident from the Venezuelan League broadcast on Friday afternoon. The punch will come 35 seconds in.
http://www.youtube.com/watch?v=g3QQIZa6-B4&feature=player_embedded
Seems like the same story is reported every day. If all these numbers are true I guess we know why Reyes was never coming back.
Please SELL SELL SELL. Why do i feel like the Wilpons are running this team like the movie Trading Places??
As evening approaches let me take this time to wish everyone a Happy Holidays, Merry Xmas and have a Happy New Year.
It’s a mess. i don’t want to trade Wright or Niese, but should we for some key player(s) and major prospects, since we’re broke…and lay the foundation (hopefully) of a perennial contender in ’14/’15 and beyond? Or is it better to hang onto to the few legit ‘regulars’ and try to be competitive while we rebuild?
i’m asking the question because i waiver on the answer.
I assume that the owners feel they are in an elite, tightly knit exclusive club and thus must stick together. That’s the only reason I can come up with them not dictating to their employee, the Commissioner, to do something about the Mets and fast. But as you point out, Joe, it is possible that things could break their way and they could ride out the storm. Riding it out is one thing, but what one might be left with is another.
It’s a no-win situation except maybe for the Wilpon’s own stubborn sense of entitlement.
Now it’s time, yes the wilpons are wondering, so now do us a favor, please sell this team to give us a real chance to become a winner for a long time, also please mlb get rid of scott boars he’s the real reason players are paid way too much, players whop can’t really play the way they should. The best xmas present for us mets fans is fimally the wilpons do the right thing SELL, SELL, SELL.
What fool would give them 20 million dollars with no hope of ever recovering their money, much less make a profit? They’ll never raise 2 million much less 200 million. Einhorn stepped in because he saw it as an opportunity to buy the franchise outright in 3 years but when that fell through the 20 mil plan came about. This is desperation and it won’t work. How can it you have nothing to offer for 20 mil except a luxury box, a parking space and a few other perks. Folks with that kind of money can but those things whenever they want for a lot less than 20 mil. I bet when the ballplayers talk they say “get out of town as fast as you can” and I bet most of them are saying please trade me. I don’t understand why the creditors are calling the notes in default and demanding payment?
I wonder what the team and the SNY network are really worth? Whomever would buy the team would have to pay enough so that the debts to MLB and the banks are satisfied and that Fred has a bit leftover for himself. On top of that if Sterling Equities gets socked by the pending lawsuits, then the price of the team will be greatly reduced…..
Where is a guy like Mark Cuban when we need him?
Mark Cuban would be a dream Owner for Met fans ,people in public relations and for the Newspapers. How about a group headed by Jerry Seinfeld???
I’ve been saying the exact same thing for the past few years when this fiasco started. Cuban in New York would be fantastic…of course, he’s interested in the Dodgers too, so, fingers crossed that he is 0 for 3 in his attempt to purchase an MLB team (Cubs and Rangers didn’t work out) so he can still buy the Mets.
I agree with the speculation that Selig is probably waiting for the banks to demand that Wilpon and Katz sell the Mets outright to recover a chunk of what is owed to them because of his old boy network relationship with Fred.
Just a thought…maybe a massive letter writing campain(sic) flooding the commish’s office with letters would help ??
Naw,
Empty seats will make a much more proficient statement.
Empty seats is the only answer. I won’t spend a penny on the Mets until the Wilpons are gone. And they will be if no one goes to games or buys Mets gear.