New York Mets fans are probably sick of hearing about their team's financial problems, but the latest news reported Monday by the New York Times is an indication that the Mets are really having money issues. According to writers Michael S. Schmidt and Richard Sadomir, because of their lack of cash flow and their inability to borrow money from Major League Baseball, in the past six weeks the Mets have been given a $40 million loan by Bank of America to help stay afloat.
"The team described the arrangement as a bridge loan," says the report, "meant to aid the team as it tries to raise money through the sale of minority stakes in the club."
"The loan marks the second time in a year that the Mets have received an infusion of cash. A year ago, the team’s owners, Fred Wilpon and Saul Katz, received a $25 million loan from Major League Baseball, but they have not been able to repay it. Meanwhile, Sandy Alderson, the club’s general manager, said last week that the organization had lost $70 million in 2011 alone."
The report also states that during the past year the Mets have been trying to sell minority shares to help payback loans to MLB, but the news of the $40 million loan suggests that the shares sold were not enough.
"The implications of the team’s latest outside financing are not easy to forecast," said the report. "But two people with knowledge of the team’s finances said that if a full lineup of minority stake investors was not in place by next spring, and cash not in hand, Wilpon and Katz might have to confront the prospect of selling the team entirely."