Mets having serious Financial problems? Your thoughts & article inside->?
Report: Mets Financial Troubles Mounting
The New York Post is reporting that the Wilpon family’s financial situation is so precarious that they cannot add payroll through trades. The report states that adding a front line starting pitcher is the least of their problems. Their debt load is so heavy and attendance is down so much this season that if the trend continues for a season or two, they may be forced to sell the team.
It was almost one year ago that I wrote about the Madoff mess causing talk of the Mets being forced to sell the team. Now those rumors are back. You never really know exactly what the financial situation of the team is. But it’s not a good sign when the rumors of trouble are consistent and persistent.
The key points of the NY Post article are:
* The team has nearly $700 million in debt
* The Mets are losing about $10 million/year including depreciation and interest payments on the debt
* Attendance is down 19% from 2009 and down 35% from 2008
* SNY is profitable but is leveraged to roughly six times it’s earnings before interest
* The Wilpon family refinanced about $375 million in loans and kept $75 million for themselves
The article has a little bit of information about the family’s investments in commercial real estate which has been in a down market for three years now. It doesn’t help that the Mets’ fortunes have been down for three years now either. And it won’t be easy to recover. The article states that one of the debt covenants prevents the team from increasing payroll. Taking on Roy Oswalt or Cliff Lee would be great this month. But the Mets can’t expect the Astros or Mariners to take back equal or more salary.
We may be stuck with the pitching staff as it stands now. Maybe John Maine or Oliver Perez will come back and start doing what seems unlikely to most of us. If not, we could be speculating on who will be buying the Mets in a couple of years. Hopefully, it won’t get to the point that the Rangers have this season.
- mattapan26Lv 79 years agoBest answer
Not just the Mets. The former owner of the Padres is going through a divorce that caused him to have to sell the team to former agent Jeff Moorad. The current owner of the Dodgers is going through a massively messy and well publicized divorce that is taking on soap opera aspects. Teams like the Indians, Marlins, Pirates and Orioles have to be hurting given their consistently poor attendance.
Consider yourself lucky that Steinbrenner bought the Yankees and has been willing to fund winning teams for 38 years.
- 10 years ago
The Wilpons are right up among the worst owners in baseball. Seriously, I figure that they're professionals and that there should be some kind of positive argument for the things they do, but sometimes it's just mind boggling. The Wilpons have been messing up the Mets for years now along with their horrible GM and manager.. Just awful. The Mets have good players, but horrible, HORRIBLE staff and owners behind the scenes.
- AceLv 710 years ago
The Wilpon Family should sell the Mets to someone that can do a better job of handling money
- 4-3.Lv 510 years ago
"Kept 75 million for themselves".
Horrible owners. Horrible GM. Horrible Manager. Horribly run team.
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- Justin DLv 510 years ago
As soon as I read that the source is NY Post, my mind turns off. I have no idea what this article's about or care about what it reads.
- Anonymous10 years ago
Maybe they can seek financial assistance from the Skankees.
- Lone WoofLv 79 years ago
Let them die a slow and painful death. They deserve it after 1969.
- Anonymous10 years ago
they should sell the team