Outside a miraculous recovery by Matt Harvey, the New York Mets have the best possible news today. On the day of their first full squad workout, the Mets finalized their refinancing, reported The New York Post.
So, if Fred and Jeff Wilpon are spotted smiling on one of the fields in Port St. Lucie, you’ll know why.
The Wilpon family, stung in the Ponzi scandal, were five weeks from having to make a $250 million payment on an expiring loan. Had the loan been called, it is questionable whether the Mets could have come up with the money.
Reportedly, the Mets lost $10 million last season, but with their payroll to be under $100 million for a third straight year and Major League Baseball’s new television contract, they could turn a profit this season.
The new loan, which is for five years and headed by Bank of America, is for the Libor average plus 3.25 percent. According to the report, the Mets did not have to pay down their former loan to make this one happen or shell out one shiny nickel.
The Mets, who are currently valued at $1 billion, still need to have Major League Baseball approve the deal, which will be a formality.
Irving Picard, who was assigned to recovering funds for victims in the Bernie Madoff Ponzi scandal, initially sued the Wilpons for $1 billion, which would have necessitated selling the Mets. However, the courts reduced that to $386 million.
The Mets’ financial restraints were loosened this winter with the signings of Curtis Granderson, Bartolo Colon and Chris Young. However, that did not represent any new spending, but merely replacing some of the dollars freed up by expiring contracts on Jason Bay and Johan Santana.
While that was an encouraging sign, as is the re-financing, don’t expect a spending spree next winter and the team to return to the days of a $143 million payroll.
If the Mets are competitive this season with a $90 million payroll, they will likely increase spending in small increments. At least that’s the hope.