Like us on Facebook


Follow us on Twitter





Page 1 of 4 123 ... LastLast
Results 1 to 15 of 53
  1. #1
    Join Date
    Oct 2011
    Location
    Brooklyn
    Posts
    19,910
    vCash
    1500

    Wilpons refinance their 250 million dollar debt but not so fast..

    http://nypost.com/2014/01/30/new-loa...oney-problems/

    The Mets’ owners appear to be on the verge of finally putting the team’s financial problems behind them, The Post has learned. Cash-strapped Fred Wilpon and Saul Katz, who faced perhaps an insurmountable spring principal payment on their $250 million loan, are close to refinancing the note, sources said.

    “This will be oversubscribed,” a source considering investing in the Bank of America refinancing said.The re-fi — the biggest off-field hurdle the team faced this off-season — will likely close in February or March, the source said.

    Until recently, it wasn’t certain investors weren’t going to insist the team owners pay down some of the loan to get the refinancing done. Wilpon and Katz will not be asked for any cash paydown, sources said. Plus, interest payments are expected to stay about the same, a source with direct knowledge of the situation said. The rate will likely end up at Libor, plus 300 basis points, or a shade under 4 percent, a source said.

    The seven-year re-fi will give Wilpon and Katz much- desired financial breathing room, sources said. For the longtime friends and team owners, it is perhaps the best outcome they could have hoped for.

    For Mets fans hoping for new ownership to breathe new life — along with some power and pitching — into the line-up, perhaps the news is less thrilling. There is a bit of a silver-lining for critics of Wilpon and Katz: There are no payroll limits written into the re-worked loan, a source added. The existing loan restricts the team from greatly expanding payroll.

    For 2014, the Mets are expected to slightly increase payroll to more than $90 million from $85 million.

    The Mets spent $87 million in the off-season signing Curtis Granderson, Bartolo Colon and Chris Young. Mets sources believe payroll will increase slowly in coming years, but probably won’t get back to 2010’s $140 million level anytime soon. The Mets — which still have to make their interest payments — lost more than $10 million in 2013.

    Depending on attendance and payroll, the team could turn a profit this year since the value of a new national TV deal jumps by $25 million per team. Mets attendance has fallen for five straight years. Last year they drew 26,695 fans per game.

    Still, this is quite an Amazin’ comeback for the Mets, who didn’t have the cash to make revenue-sharing payments in 2010 and 2011 — forcing them to borrow $65 million from Major League Baseball and Bank of America, sources said. “The fact they are still here after Madoff is a miracle,” a sports industry source said, referring to the financial hit Wilpon and Katz took in the Madoff Ponzi scheme.

    In 2012, the Mets were able to raise $240 million by selling 40 percent of the team to a group of minority investors that included hedge-fund honcho Steve Cohen and comedian Bill Maher. The minority stake sales allowed Wilpon and Katz to pay off MLB and BofA. In addition, the partners paid more than $100 million toward $430 million of team debt that they are now in the process of refinancing.

    A Mets spokesman declined to comment.
    Have to say I am discouraged about the line in regards to them not being near 140 million dollar payroll anytime soon but at least there are no payroll restrictions in this current loan refinancing. Will take and wait see approach with it though before my head does that thing from the movie Scanners. It's also the New York Post though so consider the sources perhaps.

    Not to mention the Capital New York article which suggested the Mets couldn't make any significant moves this past offseason without permission to spend first. That wasn't particularly accurate.
    Last edited by metswon69; 01-30-2014 at 11:41 PM.

  2. #2
    Join Date
    Oct 2009
    Posts
    10,914
    vCash
    1500
    I wish I had a clue about financial terms. Can somebody break this town for me in very simple terms. What does it mean to refinance 250 million?

  3. #3
    Join Date
    Oct 2009
    Posts
    10,914
    vCash
    1500
    Also thats a pretty horrible sign we wont be able to reach $140 Million. You figure with Harvey's major deal looming and the fact that at some point we need to get serious about acquiring an allstar caliber bat at either 1B or LF not good.

  4. #4
    Join Date
    Oct 2011
    Location
    Brooklyn
    Posts
    19,910
    vCash
    1500
    Quote Originally Posted by waveycrockett View Post
    Also thats a pretty horrible sign we wont be able to reach $140 Million. You figure with Harvey's major deal looming and the fact that at some point we need to get serious about acquiring an allstar caliber bat at either 1B or LF not good.
    Harvey's deal doesn't loom till 2019 when he is a FA. The refinanced loan won't come do for another 7 years now which gives the Mets money to spend in that time as there is no cash paydown on the loan.

    Now we have to hope they are willing to pass that 140 million dollar threshold if there are players that call for them to do so and that's the good thing about there being no payroll restriction in relation to the reworked debt.

    The alternative to not refinancing would have been even less money to spend presumably.
    Last edited by metswon69; 01-31-2014 at 12:09 AM.

  5. #5
    Join Date
    Oct 2011
    Location
    Brooklyn
    Posts
    19,910
    vCash
    1500
    http://www.mlbtraderumors.com/2014/0...medium=twitter

    Kosman writes that Wilpon and Katz were facing a "perhaps insurmountable" spring principal payment on the loan, but the refinancing of the deal could provide the Mets with significant breathing room to help the team increase payroll in future seasons. There will be no payroll limitations written into the reworked loan, as there were in the previous agreement, Kosman reports.

  6. #6
    Join Date
    Apr 2008
    Posts
    14,850
    vCash
    1500
    Well this sucks. I don't have a personal thing against the Wilpons by any means so congratulations to them for surviving this, I guess. But if they're going to keep treating the Mets as a small to mid market team for the next 7 years then that's really gonna suck.
    Quote Originally Posted by NYG+Braves
    Im a Braves fan and im scared to face Harvey way more then Strasburgh. Lol strasburgh dont scare me at all compared to Harvey.

  7. #7
    Join Date
    Sep 2010
    Location
    East of the Sun, West of the Moon
    Posts
    13,772
    vCash
    1500
    Quote Originally Posted by waveycrockett View Post
    Also thats a pretty horrible sign we wont be able to reach $140 Million. You figure with Harvey's major deal looming and the fact that at some point we need to get serious about acquiring an allstar caliber bat at either 1B or LF not good.
    So a $140 million payroll is the critical factor in determining the success of a franchise? Do you think the Cardinals' and Braves' payrolls approach $140 million? Compare the success of these two teams with the Yankees, Angels, and Phillies last season and in the past decade. Citing payroll as a crux of on-field success is foolish. The Cardinals have only been above $100m the past 3 seasons. The Braves? Twice in the last 14 years.

    This team will continue to make incremental improvements, and money will be spent to retain young talent accordingly. Ultimately I think payroll will easily pass $120m if that satisfies you. The Mets won't win because they spend money, but they will spend more money as the team sustains winning. It may take a few years though, and will likely happen as Harvey, Wheeler, etc start to hit arbitration and the Mets acquire other young talent.

    A major deal for Harvey is not "looming". Put that in your back pocket and have a seat for 3 or 4 years. No worries for a while.
    Last edited by Dugmet; 01-31-2014 at 09:31 AM.

  8. #8
    Join Date
    Sep 2010
    Location
    East of the Sun, West of the Moon
    Posts
    13,772
    vCash
    1500
    Quote Originally Posted by waveycrockett View Post
    I wish I had a clue about financial terms. Can somebody break this town for me in very simple terms. What does it mean to refinance 250 million?
    Eventually Acer will wander in and probably explain.

  9. #9
    Join Date
    Aug 2007
    Location
    Northport, LI
    Posts
    1,056
    vCash
    1500
    They took a loan with what is called a "balloon payment." Typically this means they are only paying interest, or very little principal, during the term of the loan. This type of loan is usually used to finance an asset that one predicts will increase in value and sell at a profit in the future.
    Scarecrow: I haven't got a brain... only straw.
    Dorothy: How can you talk if you haven't got a brain?
    Scarecrow: I don't know... But some people without brains do an awful lot of talking... don't they?
    Dorothy: Yes, I guess you're right.

  10. #10
    Join Date
    Mar 2009
    Posts
    17,065
    vCash
    1500
    Quote Originally Posted by eltwo View Post
    They took a loan with what is called a "balloon payment." Typically this means they are only paying interest, or very little principal, during the term of the loan. This type of loan is usually used to finance an asset that one predicts will increase in value and sell at a profit in the future.
    This pretty much sums it up.

    We've known for a few years that the Mets had a balloon payment coming. The haters have pinned their hopes on the "fact" that this payment would ultimately force the Wilpons to sell the team. Now that this last hurdle has been cleared, hopefully everyone will accept that this is the Wilpons' team, and that's not changing any time soon.

    A few of us (myself included) have said all along that the Wilpons would refinance the loan when the time came.

    At the end of the day, this means absolutely nothing for the short or long term finances of the Mets, or their payroll flexability.

    The most important piece of information in all of this is that the Mets lost $10MM in 2013, when expenses included the dead Santana and Bay money. Since the new national TV money is about to increase revenue by $25M a year, and the dead money is no longer putting red ink on the books, the team should have the ability to spend in the $110-$120MM range assuming attendance doesn't continue to fall.

    The best way to turn around the attendance decline is to put a winning product on the field. That doesn't mean a $90MM, $110MM, or $140MM payroll. It means finding the right players who will compete on the field and contend.

    If they are done spending this offseason, it means that:
    A. They either believe they have the pieces to contend
    B. They plan to upgrade inseason
    C. They want to see if they can stabilize the finances in what should at least be a year in which the team should win 80-82 games.

    Personally, I would invest in one or two more players and hope the team contends and revenues increase. That doesn't mean it's the right approach, but it would be mine.
    Let your plans be dark and impenetrable as night, and when you move, fall like a thunderbolt.
    -Sun Tzu

  11. #11
    Join Date
    Nov 2009
    Posts
    2,746
    vCash
    1500
    Yes, basically, no one ever expected they were going to suddenly pay this $250M off when it came due. It was always expected they would just get a new loan to pay off the old loan. That's all refinancing is. And since the value of the underlying asset, the team, is increasing, they will have no trouble doing that.

  12. #12
    Join Date
    Aug 2008
    Posts
    29,075
    vCash
    1500
    FELLOW SATINISTS INCLUDE:
    FoC, YS, Harry, Zmaster, Gotta, ArkansasMetsFan, KingsnQueens7, The-rock-man, Wrigheyes4MVP, Vendetta, Jim Labruno


  13. #13
    Join Date
    Jun 2011
    Location
    Aurora, CO (HT Queens, NY)
    Posts
    10,561
    vCash
    1500

  14. #14
    Join Date
    Nov 2007
    Posts
    772
    vCash
    1500

    New Loan Could End Mets' Money Problem

    It would be nice to think we were actually a big market team...CLICK

  15. #15
    Join Date
    Sep 2010
    Location
    East of the Sun, West of the Moon
    Posts
    13,772
    vCash
    1500

Page 1 of 4 123 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •