Blog Entry

Report: Mets debt worse than previously reported

Posted on: April 27, 2011 9:19 pm
Edited on: April 27, 2011 9:19 pm
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By C. Trent Rosecrans

Bobby BonillaOne of the many reasons I do what I do now is that I have very little interest or understanding of the financial world -- but I do know enough to know the Mets are in a bad, bad spot.

Fortune magazine reports the Mets financial mess is worse than just the $430 million in bank debt the ownership group faces. According to the magazine, the team's liabilities are closer to $625 million.

According to the magazine's source, the team has $100 million of what it calls "contingent liabilities" -- including deferred payments to players long gone from not just the Mets, but also baseball. Bobby Bonilla, right, is owed $1.2 million annually for the next 25 years and Bret Saberhagen will get $250,000 every year until 2029.

The potential buyer believes the team could lose as much as $70 million this season due in part to the team's dismal showing at the turnstiles so far this year.

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Comments

Since: May 1, 2008
Posted on: April 28, 2011 12:58 pm
 

Report: Mets debt worse than previously reported

Technically, if the mets file then "employees" with contracts will go to the back of the creditor line, so they will likely never see another dime.  But MLB will never let a team go into full bankrupcy.  That is why Steve Cohen from SAC is trying to make an equity bid for that 49% stake thats up for sale AND trying to buy up all their debt.  That way, if the team files for a 363 sale or some other form of bankrupcy, he will be first in line to claim their assets and will end up owning the team outright.

I cant see it ever going that far.....especially if Selig has already tried to take control of the Dodgers over a bad divorce.....



Since: Jan 31, 2010
Posted on: April 28, 2011 8:36 am
 

Report: Mets debt worse than previously reported

I wonder if the Mets clain bankruptcy if they would still have to honor those contracts.



Since: Nov 7, 2010
Posted on: April 28, 2011 4:58 am
 

Report: Mets debt worse than previously reported

hahahah

be careful guys..the system could implode...
the nba has already declared big losses  in almost all franchises
attendence is decreasing everywhere drammatically in every major sports but nfl(i suppose)



Since: Mar 2, 2009
Posted on: April 27, 2011 9:40 pm
 

Report: Mets debt worse than previously reported

Somehow, you just knew that Bobby Bo was going to be part of this mess, didn't you?


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