Meet the Mets!

December 13, 2011

Political Theory


http://www.nytimes.com/2011/12/13/sports/baseball/mets-struggling-for-cash-receive-40-million-bank-loan.html?_r=2&hp

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.

Image

Image

Image

            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?

About these ads

Subscribe

Subscribe to our RSS feed and social profiles to receive updates.

2 Comments on “Meet the Mets!”

  1. joethahn Says:

    I actually find the financial crisis of the New York Mets very interesting. Although I am an avid viewer of sports I’d never seen or payed attention to a team that had financial troubles, in any sport. I never really thought of it that way but your blog brought to mind that a sports team is essentially a company. Furthermore, I thought it was very interesting to read that the sports team is able to borrow money from banks. In terms of the Madoff lawsuit, I think that you are very right to say that the issue is one of dirty hands. Based on the article you provided it seems very likely that the owners knew about the source of the money coming in from Madoff’s fraud. The owners knew that the money that the returns they were using were the result of fraud, but turned a “blind eye” for the good of the team. The Mets were and still are going through financial troubles and could use all the investments they could get, so the owners performed actions that they knew were immoral at the time in order to relieve the debt and possible loss of ownership. Sadly I don’t think that the Mets will be able to make a comeback unless the team is sold. The team seems to be consistently going downhill and a big break doesn’t seem likely to pop up. However it is important to remember that the owners are not the only reason for the financial troubles of the team. As I said earlier a team is like a company, with the owners as the heads and many staff members and players working under them. The players’ performance and popularity play a huge role in the success of a team, financially, and the performance of the staff plays a large role in the performance of the players. It is not just the owners who are not performing well, but also the marketability of players and work of staff has also suffered.

  2. ceabee Says:

    In all honesty, I don’t think the Mets will bounce back from their current financial situation. Especially since they have shown inability to hold on to star players who would bring in spectators and increase sales in merchandise. I think they will have the be sold in order to repay the debts. However, I don’t think the owners are the only ones to blame for this dirty financial situation, as such a messy situation is never that clear cut. I do agree that when the owners of the Mets decided to turn their backs on what Madoff did it was a bit of a play of dirty hands.

Follow

Get every new post delivered to your Inbox.

Join 112 other followers

%d bloggers like this: