6
2012
Mets Setting The Record Straight, What Are Turnaround Consultants
An article by 
Apparently, the Mets Twitter account is very busy today and surely they want to set the record straight on that whole Mets + CRG = Bankruptcy thing you may have heard about.
Yes, there does seem to be lots of talk about that today…
Good question and a very well worded (but prepared) response.
Darren Rovell is the host of Sports Biz on CNBC.
Today, I spoke to Boris at one of the premier Turnaround Consulting Services in the country. They’ve been in business for over a quarter-century working mostly with distressed businesses. I’m going to talk more with him on Monday and possibly even post an interview, but here is what I can tell you about what Turnaround Consultants do based on what I was told:
- They will stabilize your cash flow to calm things down with creditors.
- They will conduct a series of tests to diagnose the business problems and based on the results, they’ll recommend solutions, prepare a cash forecast, and develop a written turnaround plan for your company.
- They will prepare a series of action items and help you implement them as you guide the turnaround to a successful conclusion.
Here is another definition from a different source:
So what is turnaround consulting?
As the term implies, this service revolves around the turnaround of businesses from debts and losses and back into profitability and stability. Consulting services offer accurate reporting on the finances and cash projections of the business and projects possible scenarios for better business planning.
The vast majority of businesses that contract with turnaround consultant services like CRG , do not file for bankruptcy. What went on with the Texas Rangers is not the norm, it’s the exception.
The best turnaround consultants want to help businesses reverse the negative cash flow and mounting debt and put the distressed business back on a solid and healthy financial footing. So this is what I was told.
As I’ve written here before, the $40 million dollar bridge loan that was approved by Bud Selig, was intended to help the Mets get past upcoming debt obligations in 2012.
If any sales of the shares come through that money will help as well. If they sell all ten, that will be $200 million dolars that will be pumped into the team to pay down even more debt and possibly stabilize the team for a long time.
They have already chopped $42 million dollars from this year’s payroll which is more money saved.
The 50th Anniversary plans will lead to more ticket sales than you think.
The 2013 All Star Game is still in play and potential investors will see that as a big plus.
There’s a lot going on here. If not for that bridge loan things might be very different today, but today’s outlook is much brighter for the Wilpons than it was back in October.
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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So this was a move to keep them entrenched rather than a sign that the team will go bankrupt and be sold?
Wouldn’t you do the same thing if you owned the team?
For the people demanding the Wilpon’s to sell is like asking Bayonne to be educated on a subject and write a reasonable comment.
I guess so, but the way this news was first presented made it sound like they were on their way out, and a cause for celebration.
More wishful thinking on all our parts. I’m sure they will do everything possible to maintain their control, come hell or high water, as they say.
Sad but true, NJ.
can you blame them? If you owned a business that you really wanted to keep going, you would do the same thing.
THe idea that they somehow “owe” the fans to sell is naive. All they really owe them is to put on 81 home games, and the fans can decide if that is enough!
The writing is on the wall. The Wilons situation is kind of like the teams the last couple years. If things break the right way or if this happens and that happens the team will do well. In the end reality will rear it’s fugly head.
The Wilpons are best at lying and making money the cheating way. They send out a PR release and there are people dumb enough to blindly accept it. No wonder the ponzi scheme lasted so long.
I don’t know. Did they have to hire the same company that did the Rangers thing? It seems to be that the team is preparing itself for anything and if they get pummeled in the Picard lawsuit and CRG recommends bankruptcy, then that is what will happen. Even though CRG isn’t currently recommending bankruptcy, that doesn’t mean that Wilpon doesn’t have that in the back of his head.
And how do the Wilpons make up for a 70 million dollar loss and then move to profitability with a sub 500 team? These are simple facts and they can hire all the consultants they want b ut facts are stubborn things and they are just p…ing more money down the perverbial tarp on a rainy day at Citi Field.
Let me understand this better.
They have an astronomical amount of debt, hundreds of millions.
MLB appointed a GM, and gave strict instructions, that because of the debt, pending lawsuits they are not to spend any money, said GM that has ridicules restraints, can’t sign anyone for more then 10 mins and 10 bucks.
Each day the press gets worse and worse for these guys
Yet, they retain the services of a financial agency to assist in a very distressed business and make sure that the press gets the message that they are NOT declaring bankruptcy….
RIght, ok…….spend millions figuring out what you are doing wrong, instead of spending money on the actual business……
Just do it already – WALK AWAY FRED, SAUL and JEFF
well, sure they hope these guys can come in, wave a magic wand, and find a way out of the desert.
Just as likely that after looking at the books, they will come to the conclusion that they either need to sell, or file for BK. Does not mean that is the plan going in, but certainly could be the ultimate recommendation.
And quite possible that the decision between sell and BK is whether they are completely underwater, so that a sale won’t cover their full debt load, meaning they have to declare BK to get out from under.
Yeah, stay tuned. More to come on this.
The Wilpons’ heads are so far up their **** that nobody, CRG included, is going to save them.
Tick, Tick, Tick….
The only thing that will “Turnaround” this team is when Daddy, junior and Katz go away…
Isn’t this all a huge embarrassment to Fred, the astute businessman? He has been proclaimed as a genius entrepreneurial businessman. Yet, it now comes to light that he has to hire a consultant to figure out the operational parameters of his business. Isn’t he up to date regarding his own balance sheet, income and cash flow statements? What’s so complicated? Your balance sheet has assets and debt. You figure out the leverage and determine what you need to do to achieve a better balance. The income statement is revenue less expense. Fred has an army of accounts to keep the ledger up to date. If you’re out of balance you either take action to raise revenue or reduce expense. This then carries over into the cash flow statement. You do what is necessary to achieve a balance. Now it comes to light that Fred needs a consultant to figure this out for him! Balderdash! The consultant is actually looking at the dreary reality and will be advising whether there is a prayer at staying out of bankruptcy. And if there isn’t, the consultant will start filing the necessary papers to start the proceedings. The initial review can’t possibly take more than 3 months to complete. So sometime before the 2012 season commences, we should learn that this thing has progressed to the filing stage. There will be some kind of excuse put forth regarding some unexpected downturn in the business. To me, this is the entry into the final days of the Wilpon hold on the Mets. There will be owners in place prior to the 2013 season and a new GM as well. LETS GO METS!