Saturday, May 28, 2011
According to the NY Times, the $200 million from David Einhorn's investment is almost certain to meet the team’s most pressing needs and potentially stabilize its finances at least through next year, several bankers and baseball executives said.
The Mets are expected to use $75 million of Einhorn’s money to retire some of their bank loans and another $25 million to repay a loan, due next month, that the team received from Major League Baseball, according to several people familiar with the team’s finances. This should save the Mets tens, and perhaps hundreds, of thousands of dollars in interest payments.
The remaining $100 million should help with the team’s most urgent issue — paying its players.
With a payroll of about $142 million this season, roughly $12 million in checks must be cut every two weeks. At the very least, Einhorn’s investment would mean that the Mets will have little trouble on that front for the remainder of this season.