Click that link! You Won’t! But seriously do. Its a very interesting article about the lesser of New York’s Major League Baseball Programs.
Recently, The New York Mets, a franchise that recently needed a lot of money to bail it out, have asked Bank of America for another loan. This time they will receive $40 million loan from Bank of America. They needed cash and were unable to turn to Major League Baseball for more financial help. The team tried to explain the arrangement as the money is meant to aid them as they try to pay off their loans through the sale of minority stakes in the sports club.
This club owes a lot of money to banks and The MLB itself. They tried to solve these financial problems by selling about $200 million stake in the team to David Einhorn, a hedge fund tycoon. The owners are sticking to the idea of selling roughly 10 minority shares for about $20 million each and plan to use it to pay off their debts. The choice to go to Bank off America for another loan shows their inability to pay off the club’s debt.
Earlier this month, they lost star player, Jose Reyes. Along with the inability to land big names, this is widely considered to be part of the team not working like a big market team anymore. If they cannot raise the money for the debts that the team has, then the owners may have to consider selling the team in general. This all started happening after the $1 billion lawsuit that revolved around Madoff’s Ponzi scheme. Come this spring the owners will have to explain themselves about their involvement with Madoff for so many years. The New York Mets need cash flow. The first $65 million, $25 of which they owe to the MLB and $40 million o Bank of America, that they earn goes straight out the door for debts to both the MLB and banks.
They constantly bring up how Madoff could be the key to why their financial status is so messed up. Is this a play at “dirty hands” for both the owners and Madoff? When the owners of the Mets decided to turn their backs on what Madoff did, was that considered a play of “dirty hands”? Do you think they Mets will bounce back or will have to be sold? Are the owners the only ones to blame for this dirty financial situation?