5
2012
Is Mets Financial Situation Better Than What’s Been Reported?
An article by 
Does the $138 million dollar Wright contract change your opinion on the Mets financial situation? Is it a sign that things are better than what is being reported?
Ed Leyro – Things might be better, but until I see the Mets sign a big-time free agent instead of giving their money to players who were already here, I will have a modicum of doubt.
XtreemIcon - No, that remains unchanged. I think after the Mets got off light on the Madoff scandal, we’d see some improvement, but not much, and that’s what this is. Wright is still making per year roughly what he was, so the Mets are still unable to add significant payroll, but things aren’t so bad where they have to continue to purge the roster. I think they can add $5-$7 mil for Dickey, and maybe another $5-$7 for another outfielder, and that’s about it.
Nick - I do believe the Mets are starting to acquire more stability after the settlement and it shows by making a deal like this. While the Mets will not go all out any time soon and anyway the free agents are not worth it, I believe they will spend some money this offseason and more in 2014.
Satish - I have no idea what the hell it is a sign of. The consensus seemed to be that Wright needed to be back or they would lose the fan base. I just didn’t realize they would go to this extent to keep him. What I do know is that no rebuilding team will ever sign a player to a contract like this. So either I’m an idiot, which is plausible, or we’re being run by idiots.
Michael Rappaport - Not 100%. Like I mentioned, this was a deal they had to get done, and they were willing to make it happen financially. I won’t be convinced until I see them spend money on other guys around him.
Mike Barrett - Not at all. Until a big name free agent (who deserves the money) signs with this team my opinion will not change.
Adam - It doesn’t really change my opinion on their financial situation, because I always believed they were going to re-sign Wright to this kind of contract. I think some Mets fans get too caught up in the past and take too much of what reporters, bloggers, etc. say on Twitter or write in articles as fact rather than opinion. I also think Mets fans take the Madoff situation and associate it too tightly with Sandy Alderson’s style of doing business. The Madoff situation happened, consequences were felt, things were settled, and we move on. Alderson said from day one he was not a big fan of long-term contracts like the Santana deal, but that doesn’t mean he’s against spending money totally. I think he, like many other people in baseball, saw what happened to the team with the Bay contract and the Santana contract and realized the approach needed to change. Ben Franklin described insanity as “doing the same thing over and over again and expecting a different result.” Well, Sandy Alderson is clearly not insane. He’s been very patient for the most part in waiting for getting rid of sunken costs (K-Rod, Bay) and let those he cannot do much about (Santana) run their course. But when an opportunity comes along to spend the money wisely rather than just spend it because Mets fans are bored in the offseason and want something to talk about, he does so — as evidenced by the David Wright extension.
Jessep – I think you have to look at this as a financial commitment that wouldn’t have happened a year or two ago. I’m not one who thinks the Wilpons were ever broke, if they were broke they’d be gone. I am one who thinks they were dealing with a $1billion lawsuit and that changes how you throw money around. Investing in a baseball player is not a very smart move under any conditions. So when you’re being sued, investing $100m in a baseball player isn’t the smartest thing to do. It doesn’t change my views on their financial situation as much as their commitment to try and win in the next 5 years.
Robert Patterson - I don’t think we’ll know where the Wilpons’ wallet stands until next winter. Will they reinvest the $50 million set to come off the books, or do we find ourselves with a $75 million payroll in 2014?
Clare - I am more optimistic about the Mets finances which is why I think they do indeed have the money to sign Dickey and should as soon as possible. We have not heard much about the Mets and their money recently which leads me to believe that they have sorted all of that out. Let’s go out now and sign Dickey and make a run next week at some others that can help this team going forward.
Gregg Hopps - I Never believed the Mets were poor and out of cash. I think the Mets have plenty of money, and they just had an unwillingness to spend it. But, the bottom line is, the Mets needed to spend money on Wright, or face living through the late 1970′s all over again. The Wilpons and their crew know this, and planned for it.
Jim – Things have to be better financially based on this deal. But actually, we will truly find out about the Mets finances when they release 2013 ticket prices. If you have to pay 100 bucks for an upper deck ticket and 20 bucks for a hot dog, we’ll know something is still awry.
Joe D. – For years I’ve been trying to tell anyone who would listen that the Wilpons are not broke. The Mets are just one of over a dozen different businesses in their vast empire. The Madoff situation was a big body blow as was the Picard lawsuit, but as I always asserted the owners did exactly what any other corporation or Fortune 500 company would do – cut costs and expenses, and ride the storm out. Now that all of that turmoil is behind them, expect a return to normalcy with regard to spending and overall team operations. You still have some doubters running around with their heads on fire screaming bankruptcy, insurmountable debt, and doomsday. Don’t believe that nonsense.
Sterling Project Development Group
Wilpon Sports Complex – University of Michigan
Sterling American Property, Inc.
MCU Park, Coney Island, Brooklyn, NY
Sterling Property Management Inc.
SNY Studios, Rockefeller Plaza, NYC
Brooklyn Cyclones, New York Penn League
Sterling Equities has over $4 billion dollars in value. SNY is valued at over $2 billion. The Mets who are worth at least $2 billion, just announced that they are bringing back the GCL Mets affiliate, and additionally they have just taken over the Kingsport Mets affiliate.
If this $140 million dollar Wright deal hasn’t convinced you that the Mets have overcome any financial uncertainty, then nothing will.
Update: Right on cue!
This afternoon in Nashville, Mets COO Jeff Wilpon said the payroll will be going up next year, as they will have increased flexibility after some of the “bad contracts” come off the books.
Going up means re-investing Santana dollars plus more dollars.
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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NL East Standings
| Team | W | L | Pct. | GB |
|---|---|---|---|---|
| Braves | 42 | 28 | .600 | - |
| Nationals | 34 | 35 | .493 | 7.5 |
| Phillies | 34 | 37 | .479 | 8.5 |
| Mets | 25 | 40 | .385 | 14.5 |
| Marlins | 22 | 47 | .319 | 19.5 |
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I won’t believe it’s better until they invest in the team before 2014. If they don’t increase payroll at least moderately this offseason which they have indicated they won’t then I don’t think extending Wright means they’re out of the woods just yet. This contract doesn’t kick in until 2014 when 50 mil comes off the books. If Bay and Johan had 2 more years left then it’s possible this doesn’t get done.
Jeff is on the Fan now and he states he has increased payroll and has given Sandy extra money to play with this year….but talk is just talk
I had no idea the Wilpons owned that much real estate, wow!
IMO, not really.
As others have already pointed out, MLBTR giving some tidbits on Wright’s contract. One of those includes a salary for just 8 MIL next season – which gives them the other 8 MIL to play with.
As part of Wright’s extension, his 2013 salary will be reduced to $8MM, and he’ll defer $15MM until after 2020, according to Brian Costa of the Wall Street Journal (via Twitter).
Doesn’t sound to me like there anywhere near out of the woods yet.
LMAO…Well one thing no one can ever call you is INCONSISTENT!!!!
Youre gonna beat this drum til the sticks BREAK lol….I dont think anyone can ever convince you that they are not having troubles financially…lol
LOL. well you are correct there. I’m not convinced the Mets were not in bad financial shape.
Hence the likely deal with Selig and the 25 MLB load, the bridge loan to minority investors, the minority investors, the restructuring of SNY deal, the deferred money to Wright, etc. etc.
As I said below, they might very well be in better shape then they were last year. If they don’t spend some of that money coming off the books in 2014, then they should just sell – IMO.
Leroy, you know what really sucks? SRT can say the same sh** over, and over, and over about the wilpons being broke and blame the wilpons for everything mets, yet her and her leader gets on us whenever we blame alderson and want us to move on once and for all.. go figure!
Move along, Alex.
This article was about the Wilpons finances. I commented on that. I think the entire MMO community here knows how you feel about my opinions.
Are you leroy???? Don’t tell me to move along, i don’t tell you to move along ok, i find that very disrespectful coming from someone who often cries wolf about how some people mistreat you.. Same thing your leader says to us is the same we say to you.. Don’t blame the wilpons on this one, BLAME trs
LOL….I never thought about that but it is definitely True….They do say how much we talk about Sandy and should move on but never to SRT with her Mets are broke conspiracy theories lol…..
‘ For years I’ve been trying to tell anyone who would listen that the Wilpons are not broke. ‘
Joe, don’t think anyone thinks the Wilpons are broke…just the Mets are.
They’ve been on the losing side of the ledger for a few years now and since the WIlpons were unwilling to dig into their own pockets, hence the change in FO, the 50 MIL slash in payroll from 2011 to 2012, likely the no Reyes signing and the deferred money on Wright’s contract.
They might be in better shape then they were this time last year, but I don’t think the Mets finances are out of the woods yet.
The point man on this has always been Howard Megdal, and while he sings a different tune now, the thrust behind his book Wilpon’s Folly (which i purchased and read) was that the Wilpons were broke and 12-18 months from personal bankruptcy. That was over two years ago. Most Met fans I know including me, read that book and bought into everything he alleged and charged against the Wilpons. These days, I have no interest in anything else he has to say.
I never did read that book. He really speculated the Wilpons were broke, not just the Mets?
Interesting….
William – Joe D & I dominated Megdal on all that stuff.
And he wondered why the Mets took his team Credentials away….
http://observer.com/2012/02/howard-megdal-mets-banned-02062012/
Shotty journalism maybe
right – this was actually what stemmed the domination. We had a nice little twitter battle over it. One of possibly 3 time Joe D and I have been on the same side of an argument lol
“The author’s desperate self-promotional campaign for relevance has led to perpetuating baseless speculation and complete inaccuracies.”
Lol, the Mets must hate that guys guts!
The guy is a fraud. He sucked us all in and them it turns out it was all BS. I’m surprised he still has a job with Lohud, but then again who reads Lohud.
Speaking of self promotion
http://metsmerizedonline.com/2012/02/the-aftermath-of-megdal-media-day.html
Check that out and make sure you read comments by Megdal himself. That day and the days leading up to it were probably the most fun I ever had at MMO. Joe D and I were blasting this guy.
Joey D seems to believe everything Megdal writes. He’s always posting his articles here. Howard Megdal shouldn’t be allowed to write about the Mets or anything else for that matter. The guy is a clown and a fraud.
Joe,
I agree with you 100%. These are very wealthy people who got crunched a bit with the double-whammy. First, they borrowed big to finance a new stadium and paid the price when revenues dropped due to poor team performance and the economy. Second, hundreds of millions of dollars they thought the had, growing at interest rates well above market, evaporated. However, due to their vast wealth, they outlasted the cash squeeze and temporary losses. These are individuals that own assets worth BILLIONS, even if they are overlevereged. They certainly can afford to spend some more money on the 2013 product that they are asking their fans to pay premium prices to see.
Agree.
The last few years most Mets fans have probably spent more time worrying or trying to figure out the Wilpons’ finances than thinking about baseball. I just hope baseball comes back soon. And I don’t mean what we have been putting our there the last two years.
“Sterling Equities has over $4 billion dollars in value”
Exactly my point so if you’re being sued for 25% of your company, you don’t go and spend another $100m on a baseball player who’s value like a car will drop pretty rapidly.
That lawsuit left a cloud of uncertainty on their wallets and portfolio. It took way too long to settle and making drastic $ moves like say Jose Reyes wouldn’t have been wise.
If you ask me gun to my head, winter 2011 – I say Wright isn’t signed. I think Reyes was mostly a casualty of the circumstances.
‘If you ask me gun to my head, winter 2011 – I say Wright isn’t signed. I think Reyes was mostly a casualty of the circumstances.’
Ed Coleman said as much on SNY earlier.
nice – Ed & I are like 2 peas in a pod then lol
Alderson said the same thing a little while ago on Francesa’s show. This wouldn’t have been possible 2 years ago.
I’m on fire today then.
I only heard Francona & Wright’s interview on my way to and from a meeting
Clearly the Wilpons are swimming in billions of dollars. What we need now is for them to resume spending what is needed to bring a championship to Flushing. I hope they plan to use the 4 years of prime production left in Wright to win and stop hoarding prospects. We are officially a win now team with this Wright deal. It’s now or never.
Again unless you can see their books it is all speculation how well the Mets situation is. Historically the Mets have for the most part always spent when it came to payroll at least until the recent Madoff incident. What remains to be seen with the clawback attempt now resolved out of court is will the team have the means going forward?
Signing Wright is 1 step in demonstrating that may be the case but in my opinion we really won’t know until a year or two down the road as far as spending is concerned. I read somewhere that payroll in 2013 may end up slightly higher than the $100M that was earlier reported. Now is that including say money set aside for mid season acquisitions or the draft? Since these figures tend to often include such detail I don’t know.
Wright clearly stated that before his agents sat down to work out the extension he 1st had to be convinced that the Mets had a plan they are trying to implement with hopes of winning and he came away confident in what he heard. Now maybe the got the Loria/Bienfest treatment. If so he will soon know but I think the Wright signing is a good sign going forward.
I look forward to one day hopefully watching the Mets win another W.S. with Wright in a Mets uniform.
As I always say – we are in the number one baseball market in the world and we have owners that have set the budget at a mid-level team rate.
To own a team in New York brings along a certain responsibility. I’m not saying that we should be like the Yankees and buy everyone in sight but certainly the Wilpons should understand that it takes money to make money.
Being held hostage with expensive back loaded contracts isn’t a smart move – but putting on a team that will contend year in and year out should be a priority in New York and certainly would be the easiest way to fill the stadium. We haven’t been in the playoffs for six years and right now it looks like it will be at least another two years before that will happen.
Despite what they did with Wright, the Wilpons are costing themselves tens of millions of dollars in lost revenue and offering us a non-competing team.
It’s not fun.