Tuesday, March 01, 2011

Financially Challenged Mets Want Another Loan?


The cash-strapped New York Mets are seeking yet another loan to cover operating expenses, the New York Post reported.
JP Morgan - which led the banks that loaned the team about $430 million last year -- is trying to recruit other institutions to join a syndicate to put together a new loan that would tide the Mets over until they sell a minority stake in the ballclub.
This comes shortly after it was revealed that MLB loaned Mets owner Fred Wilpon $25 million in 2010. It was the second time that Wilpon borrowed from MLB. He previously borrowed $50 million.

The Mets have totaled $505 million in debt. However, the frachise is worth about $800, so theoretically, the Mets can still take on more debt.

The instability with the Mets' financial situation could start to find its way to the playing field. The Mets owe about $170 million in future committments.

Keep an eye on outfielder Carlos Beltran. He's owed $19.3 million this year and could be traded. And if the Mets decide to dump shortstop Jose Reyes, who becomes a free agent after the season, before the trade deadline, then all signs point to the Mets cashing it in.
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