The problem for the Wilpons, if you see the glass as half empty, is that they are using the profitable side of their business (leveraging their 65% stake in SNY to the hilt) not only to pay down debt on SNY, but on the Stadium side of operations which has bled losses of 143 million over the past three seasons. The team owes a crippling annual $43.5 million for Ebbe, er Citi Field which was predicted in that same Standard and Poor report to see another 8 percent drop in attendance this year. An 8% drop in attendance comes out to around 180,000 fewer paying fans. That’s roughly an additional 22 million dollar loss on top the standing 23 million dollar deficit from last year. So the Wilpons could be looking at losses of over 40 million in 2013. With this latest stratagem the Wilpons have increased money owed on SNY from 450 million to 700 million. There is still the matter of the debt on Citi Field which has not been paid down. That debt represents the same 43.5 million in yearly payments (and 22 million in annual interest) in addition to the 320 million lump-sum due in 2014. The argument that the ship is still sinking can certainly be made. It’s hard to know for sure how broke the Wilpons are. Irving Picard, the trustee for the Madoff victims, believed the Wilpons simply didn’t have the money he was looking for after thoroughly combing through their records. In the end, this refinancing is the equivalent of a second mortgage to help pay off a major debt, and it has the feel of a borrower tapping his last bit of collateral. My guess is they’ll use the 240 million to pay down the team debt and bank debt while they apply some of the 160 million to the stadium’s debt and some to operating expenses and cash flow for the next couple of seasons. They’re not getting any more bridge loans or emergency MLB loans, and if the bleeding doesn’t stop they’ll be in the same spot in a season or two without the option of borrowing more against SNY. All the while the fans continue to lament a diminishing Met budget and Alderson’s pathetic soirees into the free agent pool, but what they aren’t doing is buying tickets.
Alderson comes out very well if you read the entire article, which I have. I wanted to highlight the intractable financial situation, if he's right about a $40M loss (with just an 8% drop in att) - then where the $$$$ coming from for 2014?
Also what if the season is a disaster from the get-go? it could be - we all know this team paper thin with no depth, we had the worst BP is baseball last year and no help has arrived, we without doubt have the worst OF in baseball, we've lost a CY winner, and the only probably improvement is at catcher.
How low will att, fall, if the Mets DON'T have a miraculous and unsustainable 1st half like last year?
How much will they lost on a team that starts out 10 games under thru April and May? and gets no better?
In either of these two scenarios - bad and terrible, where's the $$$ coming from? and if it's not there,. how long is it going to take to force them out and get new go-ahead owners?
You've all made this case that 'no point spending if we can't win' - but IS there any money? is there?
Where's payroll stand right now, does anyone know?