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.