Sources: Mets Owners Seeking Banks' Help Raising Cash To Deal With Debt
The Mets are “talking to banks to find a way to raise cash,” according to sources cited by Richard Sandomir of the N.Y. TIMES. SportsNet N.Y., the team’s RSN, under one option would refinance its existing $450M loan and borrow “more toward paying off some of the team’s heavy bank debt and toward other possible purposes, like day-to-day operating expenses or the twice-a-year payments” on Citi Field’s bonds. Team Chair & CEO Fred Wilpon and President Saul Katz as well as SNY “could also get cash dividends from the proceeds.” SportsCorp President Marc Ganis said, “SNY is a better credit risk than the team. It’s not subject to Major League Baseball’s debt restrictions, and unlike a team’s expenses that go up and down, SNY’s are easily quantifiable.” Inner Circle Sports Founder & CEO Rob Tilliss said, “They’re moving the debt from one side of the ledger to the other.” Sandomir noted the team lost $70M in 2011 and “might have lost tens of millions of dollars more this season despite lopping off” $50M in salary obligations (N.Y. TIMES, 10/6).