Showing posts with label Mets Finances. Show all posts
Showing posts with label Mets Finances. Show all posts

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..

Wednesday, February 15, 2012

Selig giving Mets Ownership the wait and see approach about their finances


According to FoxSports.com's  Ken Rosenthal, the Mets ownership is getting the Selig’s wait-and-see approach, while this may be frustrating to many Mets fans, is no different than his approach on most issues. He prefers teams to resolve their own problems, without interference from the commissioner.


Selig is betting that the Mets’ picture will become clearer over the next several months — and he indeed may be proved correct.

The way the Mets see it, they are on the verge of raising $200 million from minority investors. That money will help them pay back a $25 million loan to baseball, a $40 million bridge loan to Bank of America and part of a $375 million loan on the team.

The Mets also believe they will prevail over Irving Picard, the trustee for the victims of Bernard L. Madoff. Picard initially sought $1 billion in claims against Wilpon and his co-owner, Saul Katz, but U.S. District Court Judge Jed Rakoff already has knocked down that figure.

Tuesday, December 20, 2011

Mets cut back, drop one of their minor league teams


The financially troubled Mets announced Tuesday that they were eliminating their minor league team in the Class A Gulf Coast League.

That move could save them between $750,000 and $800,000, according to executives with other franchises who are familiar with the cost of running those teams.

According to Jim Duquette, who was the Mets’ farm director and their general manager and now is an analyst on Sirius XM’s MLB Network Radio, the move saves money but may also reflect a new drafting philosophy. The Gulf Coast League is usually for draftees out of high school and for international signees. Most college draftees go straight to the New York-Penn League or the Florida State League, where the Mets retain affiliates.

The Mets, who recently took out a $40 million bridge loan to cover costs, were one of only three major league clubs with nine minor league teams; the Mets’ include two in the Dominican Republic. According to MLB.com, 16 organizations have seven affiliates and 12, now including the Mets, have eight.
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