Showing posts with label Financial Report. Show all posts
Showing posts with label Financial Report. Show all posts

Monday, February 25, 2013

Mets News and Notes: Mets to Lose Money?, Upton/Bourn Notes, Duda, Gee, Niese, Syndergaard, Mets Fishing


Mets News and Notes:

Josh Kosman in the Post reports the Mets again will lose money this season. Writes Kosman:

The team is expecting to lose more than $10 million this year, after bleeding red the past two seasons, while attendance is projected to fall for a fifth straight year, The Post has learned.

The owners can expect to take about $65 million from separately owned SportsNet New York cable network, which airs Mets games. However, Citi Field saps $43 million in debt payments, leaving a net gain of $22 million from those two assets. That means there won’t be much left to sink into the ballclub. …

The team should have more financial freedom next year, when some $50 million in payroll comes off the books, thanks to expiring contracts with Johan Santana, Jason Bay and Frank Francisco, although Bay will continue to receive deferred payments.

However, the Mets have paid only some of the $320 million in principal due lenders in 2014, making next year’s talks potentially tense if the Mets do not hit their own not-so-rosy projections, the source said.

John Harper in the Daily News says the Mets pitched trading Daniel Murphy or Ruben Tejada to the Arizona Diamondbacks for Justin Upton late in the offseason. As for the draft-pick issue with Michael Bourn, Harper reported the Mets received a favorable initial reaction from MLB about getting the No. 11 draft pick protected, but other teams began to complain when the Mets’ desire became public. MLB then changed its stance.

Pedro Feliciano will be held out from baseball activity for two weeks while he wears a monitor that will allow team doctors to gauge the severity of his heart issue.

Lucas Duda, who is adjusting his routine at the plate, struck out in all four plate appearances against the Astros and is now 0-for-7 with six strikeouts in Grapefruit League play. Terry Collins said Duda is getting caught with his front foot still in the air as the ball reaches the plate.

Thursday, February 14, 2013

Report: Don't Expect Mets to be Big Time Spenders anytime soon..


New York Mets owner Fred Wilpon recently told ESPN that he and his partner, Saul Katz, no longer have any personal debt. But don’t expect the New York Mets to begin spending like a big-market team any time soon.

According to a report by Forbes magazine's Mike Ozanian, the baseball team and the regional sports network of which it owns 65%, SportsNet New York, have over $1 billion in debt combined, according to sources.

The Mets have about $430 million of debt while SNY has near $750 million of debt. Of that $750 million, the owners of the Mets are on the hook for some $450 million, putting their total obligations near $900 million.

With the combined enterprise values of the Mets and SNY around $2 billion, leverage is above 50%. Moreover, the team pays $50 million a year in annual ballpark PILOT bond and rent payments that come from Citi Field’s revenue. Attendance at Citi Field is down significantly the past three years.

Standard & Poor’s stated in a December report in which it downgraded Citi Field’s bonds one notch, to two levels below investment grade, “The negative outlook reflects our expectation that the project cash flow will have slight cash flow declines in the near future before it begins to stabilize.”

Ozanian says despite signing David Wright in the off-season to a $138 million extension, the team’s payroll will likely remain in the middle of the league the next few seasons and GM Sandy Alderson will have his work cut out..
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