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Mets owners refinance $700m in loans

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Posted: 1/3/2013 9:14 AM

Mets owners refinance $700m in loans 


New York Post

The owners of the Mets have scored some financial relief.


After a months-long process, team owners Fred Wilpon and Saul Katz have refinanced $450 million in loans borrowed against cable network SportsNet New York, which airs Mets games, The Post has learned.

While the financial terms could not be learned, some of the proceeds are expected to go toward funding the cash-strapped team’s day-to-day operations.

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bored1blah2

It's been touched on in the Andrew Brown thread:  so far we're not seeing any savings reinvested in the 2013 team -- expiring contracts, Wright's restructuring, Bay's deal, etcI don't expect these "proceeds" to make a difference, either...


Last edited 1/5/2013 8:44 AM by DocK16

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Posted: 1/3/2013 9:15 AM

Wilpons Solidfying Footing As Owners - Refinance $450MM in loans 


confused

Mets owners have refinanced $450 million in loans borrowed against SportsNet New York that had been owed during the next two years, further enhancing the ability of Fred Wilpon and family to maintain ownership of the team for the long haul, the Post reported.

The newspaper did not elaborate on the structure of the new financial obligation, but it presumably reduces any massive payment coming due soon that would imperil the Wilpons' ability to retain the team.

"Use your head.....that's that lump 3 feet above your arse." - Jimmy Dugan

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Posted: 1/3/2013 9:53 AM

Re: Wilpons Solidfying Footing As Owners - Refinance $450MM in 


I kinda like to think the Wilpon's ownership must be in jeopardy.  Realistically, I believe MLB will support them with very few exceptions.  I really want owners who want to win more than make money and there is no earthly way that the Wilpons will ever be in that boat.  And honestly, that is their right and I don't hold it against them but it doesn't stop the wishing upon a lucky star.
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Posted: 1/3/2013 10:04 AM

Re: NY Post: Mets owners refinance $450m in loans 


Isn't SNY a partnership?  This move may not have anything to do with baseball business but rather part of a partnership decision to lock up cheap money on soon to be expiring debt.  It certainly could be a desparate move, but to assume as much might be a bit presumptuos.
“Every day is a new opportunity.  You can build on yesterday's success or put its failures behind and start over again.” - Bob Feller
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Posted: 1/3/2013 10:08 AM

Re: NY Post: Mets owners refinance $450m in loans 


who suggested it was a desperate move?
"Maybe it's time to make some moves."  - Sandy Alderson
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Posted: 1/3/2013 10:30 AM

Re: NY Post: Mets owners refinance $450m in loans 



NYMethuselah wrote:

New York Post

The owners of the Mets have scored some financial relief.


After a months-long process, team owners Fred Wilpon and Saul Katz have refinanced $450 million in loans borrowed against cable network SportsNet New York, which airs Mets games, The Post has learned.

While the financial terms could not be learned, some of the proceeds are expected to go toward funding the cash-strapped team’s day-to-day operations.

--------------------------------------

bored1blah2

It's been touched on in the Andrew Brown thread:  so far we're not seeing any savings reinvested in the 2013 team -- expiring contracts, Wright's restructuring, Bay's deal, etcI don't expect these "proceeds" to make a difference, either...

Just a shame really.  The way the future payroll of this team is structured, along with a funcitonal minor league system, this team  would be formidable in the hands of a well capitalized owner.
Mets trade away reigning CY Young award winner.
Still have the best pitcher in Baseball.
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Posted: 1/3/2013 10:39 AM

Re: NY Post: Mets owners refinance $450m in loans 


this article is from october, when news of talks between SNY and its banks were first mentioned.  it sheds a little light into the thought process of refinancing the SNY debt to pay dividends to the partners (65% to sterling) and then use that money to help fund the club.



http://www.nytimes.com/2012/10...-debt.html?_r=0
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Posted: 1/3/2013 12:18 PM

RE: NY Post: Mets owners refinance $450m in loans 


Companies re-finance debt all the time. I don't see this as being a big issue. Sometimes its a smart move to re-finance.
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Posted: 1/3/2013 3:22 PM

RE: NY Post: Mets owners refinance $450m in loans 


The Wilpons are incredibly selfish by insisting on keeping the team despite being plainly unable to provide the necessary financial support. As a mets fan, I cannot imagine behaving similarly when it ruins baseball for so many beleaguered met fans. Would retirement on hundreds of millions of dollars really be so bad? I find their callousness shocking.
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Posted: 1/3/2013 3:29 PM

RE: NY Post: Mets owners refinance $450m in loans 



thethe wrote: Companies re-finance debt all the time. I don't see this as being a big issue. Sometimes its a smart move to re-finance.

That's true, but this is clearly not a busines as usual situation, as the articles indicate.

The best thing about stuff like this, IMO, is that its become the only way to continue to media bashing of the Wilpons.

Clearly no one in the sports media has the cojones to do so.  So, we are left to the financial dealings writers.
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Posted: 1/3/2013 3:54 PM

Re: NY Post: Mets owners refinance $450m in loans 


Wasn't this mentioned on the board as a possibility by some of the less "sky is falling" posters a while back?
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Posted: 1/3/2013 4:52 PM

Re: NY Post: Mets owners refinance $450m in loans 



MiamiSteve wrote: Wasn't this mentioned on the board as a possibility by some of the less "sky is falling" posters a while back?

Well, my personal "sky is falling" scenario involves the Wilpons figuring out a way to retain ownership of the team long term.  To the extent that this re-financing keeps them afloat but only at the current level of payroll then I don't consider this good news for Mets fans in the least.
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Posted: 1/3/2013 4:56 PM

Re: NY Post: Mets owners refinance $450m in loans 



MookieLJL wrote:
MiamiSteve wrote: Wasn't this mentioned on the board as a possibility by some of the less "sky is falling" posters a while back?

Well, my personal "sky is falling" scenario involves the Wilpons figuring out a way to retain ownership of the team long term.  To the extent that this re-financing keeps them afloat but only at the current level of payroll then I don't consider this good news for Mets fans in the least.
I didn't really get the point so I figured this was some sort of James Bond reference tho I didn't see the movie...
"Maybe it's time to make some moves."  - Sandy Alderson
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Posted: 1/4/2013 8:23 AM

Re: NY Post: Mets owners refinance $450m in loans 


Adam Rubin @ AdamRubinESPN

The Daily News reported the Mets would like to have an expansion MLS team share Citi Field, but a league spokesman told paper no chance.

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Posted: 1/4/2013 8:30 AM

Re: NY Post: Mets owners refinance $450m in loans 




---------------------------------------------
--- vinluvr wrote:

Adam Rubin @ AdamRubinESPN The Daily News reported the Mets would like to have an expansion MLS team share Citi Field, but a league spokesman told paper no chance.



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That would be messy...MLS calendar is March-November/December and games are most commonly on Saturdays. Not sure how they could swing that.


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Posted: 1/4/2013 8:31 AM

Re: NY Post: Mets owners refinance $450m in loans 


Bloomberg

The owners of the New York Mets obtained at least $700 million in loans to refinance debt, according to a person with knowledge of the matter.

The financing will be used to replace existing credit lines and provide additional funds to the parents of the Major League Baseball team, said the person, who asked not to be identified because the information wasn’t public.



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Posted: 1/5/2013 8:35 AM

Re: NY Post: Mets owners refinance $450m in loans 


More on the $700M restructuring of debt and some opinion from Cerrone:

http://metsblog.com/metsblog/mets-owners-get-700-m -in-loans-to-refinance-debt-and-what-it-could-mean -on-field/

Spot on by Cerrone:

In the last three years, Sandy Alderson has put the Mets organization in a position to essentially start new in 2014, at which point they’ll have just two long-term contracts on the books and a crop of young talent ready to roll in the farm system. I think when he talks about 2014, he’s not necessarily talking about contending, so much as he’s talking about finally starting from zero, with a somewhat clean slate and a lot of options.

Frankly, this is probably what ownership should have done 10 years ago, which is to basically do a reset on the organization. Yes, I’m tired of seeing this team lose more games each of the last three years. But, I was growing equally tired of the Boom and Bust cycles of the last 25 years, none of which produced a ring, and none of which produced a consistent stretch of success. Sure, the Mets made the playoffs here and there, but then it would all come crashing down a year or two later, after which they’d rebuild, take flight and then quickly crash again… over and over again.

Is this current reset occurring because ownership wised up? It is happening because someone finally realized the old way wasn’t working? Or, is it occurring because they had no choice? Because it was forced on them, because it had to happen with all the off-field, financial issues? I don’t know, and I don’t really care, because it needed to happen either way. This organization has long been in need of this type of cleansing. I’m glad it’s happening, for whatever reason it’s happening, because I’m tired of always rooting for miracles only to have my hopes dashed every September. It just sucks it has to be happening now and not 10 years ago.

Yes, these last few years have been brutal and boring. Now, though, if (because of the above reports) more resources become available – at the same time only two guaranteed contracts are on the books and the farm system is in better shape – meaning Alderson can start building us a sound, sustainable, professional, winning franchise to watch – I’ll be OK and feel these last few years were worth it. Why or how we get there will not matter to me. However, if this is all just an excuse to get one family’s financial house in order, if nothing changes on field and ‘the goal posts get moved again,’ I fear there could be A LOT of Mets fans who give up and don’t come back…

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Posted: 1/5/2013 8:44 AM

Re: NY Post: Mets owners refinance $450m in loans 


Play with. Or pocket. Or use to fund team through further losses. Or spend on a free agent.

Original SNY debt: $450M. Refinanced loan: $700M+. So $250M extra borrowed. Wilpons own 65% of SNY. Thus have ~$162.5M more to play with.

In Day 3 of stories about Mets' owners borrowing against SNY, NY Times has this math .

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Posted: 1/5/2013 8:48 AM

Re: NY Post: Mets owners refinance $450m in loans 


I would assume the $162.5M will be used to fund the team through future losses, so I don't expect much, if any, to go towards 2013.  I know many people think the Mets are entitled to that money and that every red cent should go towards payroll right now, but it's clear the Wilpons are doing everything they can to hang onto the franchise.  In order to do that, they'll need that money to absorb future losses. 

Sucks, but that's our reality.
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Posted: 1/5/2013 10:23 AM

Re: Mets owners refinance $700m in loans 


I read the financing as two separate events. SNY got a refi and some debt on the team got a refi. Not one event.
“Every day is a new opportunity.  You can build on yesterday's success or put its failures behind and start over again.” - Bob Feller
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