Showing posts with label Madoff Scandal. Show all posts
Showing posts with label Madoff Scandal. Show all posts

Friday, January 31, 2014

Mets News: The Mets have refinanced their $250 Million Loan

Mets News:

The New York Mets owner Fred Wilpon and family, who faced a massive $250 million loan against the team coming due in the next few months, have successfully arranged for it to be refinanced, according to a published report.

The NY Post reported that the refinanced loan will not come due for seven years, freeing the cash-strapped owners from an immediate, burdensome obligation that could put their ownership of the team in peril.

The newspaper added that interest payments will remain about the same for team owners under the new terms. They will not be required to immediately pay down any principal as part of the refinancing agreement -- avoiding the type of immediate lump-sum obligation that could trip them up.

The refinanced loan reportedly also does not restrict the Mets' payroll, whereas the original loan's terms capped how much the Mets could spend on players. The Mets' payroll currently is about $87 million for 2014 -- well below what is customary in a large market such as New York.

The owners have faced financial peril in recent years in part because they invested in swindler Bernard Madoff's Ponzi scheme. They recently sold minority ownership shares in the club in order to pay down debt, including a loan from Major League Baseball.

Saturday, February 05, 2011

Bloomberg News: "With Madoff, the Mets owners were simply in too deep"

I am just reading more about this sad, but true story about the Wilpons partnership with Madoff..

Here is a great article from Bloomberg News by 

Bayou Accord Case Model for Any Deal With Madoff Trustee. 

It also

"With Madoff, the Mets owners were simply in too deep -- having substantially supported their businesses with Madoff money -- to do anything but ignore the gathering clouds,” according to Picard’s complaint. “Sterling performed no diligence on Madoff in response to any of the various red flags to which it was exposed.”
"The trustee’s lawsuit is an outrageous ‘strong arm’ effort to try to force a settlement by threatening to ruin our reputations and businesses which we have built for over 50 years,” Fred Wilpon and Saul Katz said yesterday in a statement.
They called the allegations in the complaint “abusive, unfair and untrue.”
"The Sterling partners had more than $500 million in their Madoff accounts at the time of his failure, their lawyers said in a statement yesterday. Wilpon and Katz said that none of the Sterling partners ever suspected Madoff was running a fraud."
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