Mets Received Loan From MLB

SATURDAY, 5:51pm: Union head Michael Weiner told Wallace Matthews of ESPN New York that despite the team's financial trouble, he's confident the Mets will pay their players on time.

"I rely upon both the assurances we received from the commissioner's office as well as the documents that we are entitled to under the basic agreement," said Weiner. "What I said when I was in [Mets camp] was that I have every confidence that all the obligations to players under the basic agreement in their contracts will be met, and I still have every confidence that that's going to be the case."

The player's union was aware the commissioner's office was giving the Mets a loan since the Collective Bargaining Agreement entitles them to such financial information. 

FRIDAY, 5:49pm: The Mets, dealing with a cash shortage, received $25MM from Major League Baseball in November, according to Michael S. Schmidt and David Waldstein of the New York Times.

MLB typically extends its 30 clubs a credit of $75MM, according to the report, which the Mets have already exhausted in addition to the $400MM debt they have on the team. To boot, more financial damage looms for the Mets, as they face a $1 billion lawsuit by Irving Picard, the trustee of the victims of the Bernard Madoff ponzi scheme.

The Mets issued a statement, confirming the report and offering no further comment, per Adam Rubin of ESPNNewYork.com (Twitter links):

We said in October that we expect to have a short-term liquidity issue. To address this, we did receive a loan from Major League Baseball in November. Beyond that, we will not discuss the matter any further.

The loan is expected to be paid back "relatively quickly," according to Brian Costa of the Wall Street Journal.

It is speculated in the Times report that Selig's assistance to offer financial aid to a big-market franchise, on the hook for about $140MM in player salary this year, might anger other owners. As well, it signals that the Mets are in dire financial straits, according to sports-industry consultant Marc Ganis, because the league is typically a "lender of last resort."

In January, the Wilpons announced that they are looking to sell a minority stake — perhaps 20 or 25 percent — in the team, and so far, that search has generated only "modest interest," according to the Times, with fewer than 12 investors applying to investigate the team's finances.

Aside from the Madoff mess, the Mets were wise to be stingy with their cash this offseason, writes Ed Price of FanHouse.com, because there wasn't a big-ticket free agent who could have put them over the top. And with a lot of money coming off the books after this season, the franchise will have flexibility moving forward — even if it doesn't spend $150MM per year on payroll — because teams can compete with any payroll so long as they spend wisely.


Full Story | 51 Comments | Categories: New York Mets

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51 Comments on "Mets Received Loan From MLB"


Dave_Gershman
4 years 6 months ago

Fred and Jeff need to have a bake sale

chaifetz10
4 years 6 months ago

Or gut the team to save cash.
I have a feeling they’re going to be forced to sell everything in the near future.

vonhayesdays
4 years 6 months ago

maybe they could try insurance fraud next or get creative with what they do with city field like , dog and pony shows

Gumby65
4 years 6 months ago

“Okay okay, you’re trying to make me feel guilty and it’s almost working”
-Oliver Perez

4 years 6 months ago

Wow, what a disgrace. They blew all that money over the years and it’s nobody’s fault but the Mets.

Time for a fire sale.

Guest
4 years 6 months ago

If the League gives them an couple-hundred-million-dollar advance in their allowance, they are going to be all over Pujols.

4 years 6 months ago

If we had it Kenny Williams way we’d have a shut down. Than we can make everyone have the same payroll, same type of players, same contract sizes. Wait this is the USA, sometimes you make money sometimes you don’t. At least the Mets have owners ready to buy them out so they come out of it possibly debt free. Unlike all those poor people who lost jobs and homes. Seriously sometimes you need to know when to fold.

wright1970
4 years 6 months ago

The Wilpons are nice guys but they are bad owners and need to SELL this team NOW!!!! Mets fans deserve to have an owner with solid financial backing and field a competitive team every year!! The problem is they (Wilpons) are too stubborn to see that they are hurting the franchise and the fans….SELL, SELL, SELL

TigersAndBraves
4 years 6 months ago

Hate to nitpick, but Ponzi should be capitalized, correct?

vtadave
4 years 6 months ago

Yes it should, but you should have an “I” in front of “Hate” in your sentence.

exportedexpo
4 years 6 months ago

Maybe MLB needs to take over the day to day affairs of running the Mets franchise. I mean they have experience in doing so with the Montreal team and MLB did such a wonderful job handling it.

notsureifsrs
4 years 6 months ago

mets seeking starting pitching, second basemen, sugar daddies

YanksFanSince78
4 years 6 months ago

“The Mets ARE my sugar daddies. I’m rich b#@!#!

-Bobby B. aka Bobby Being Bobby

YanksFanSince78
4 years 6 months ago

Do the Mets qualify for some help from FEMA? They deal with natural disasters (eventually) right?

notsureifsrs
4 years 6 months ago

hurricane oliver

Whole_New_World
4 years 6 months ago

Well, now, just WHO did they sign for $25,000,000 this off season?????

YanksFanSince78
4 years 6 months ago

In went into a special fund where it will collect interest……and pay off the 24 $1.2 mil annual payments they owe Bobby Bonilla. Yeah……Bobby Bonilla.

start_wearing_purple
start_wearing_purple
4 years 6 months ago

I understand the principle of deferred contracts but that’s just ridiculous.

YanksFanSince78
4 years 6 months ago

Dude that’s not deferred payments….that’s the megaball lottery..haha. And if the article I read was right, they owed him $5.9 mil for 1 season and offered him 24 payments of $1.2 mil due every July 1st from 2011 to 2035. Who in the he!! does that? I BARELY got a passing grade in Eco101 in college and even I know better than that.

start_wearing_purple
start_wearing_purple
4 years 6 months ago

I wish someone would pay me for doing nothing.

I’m getting a Masters in Econ and I still have no clue how Bonilla pulled this one off. Seriously the dude should write a book: “How did I turned $6M into $28M? I played for the Mets!”

notsureifsrs
4 years 6 months ago

apropos of the billy wagner thread:

1. transact with the mets

2. do something. or don’t

3. profit

start_wearing_purple
start_wearing_purple
4 years 6 months ago

Admit it. You’re one of the underpants gnomes.

stickyone
4 years 6 months ago

study harder. it sounds crazy, but with how far out it was pushed, IIRC it assumed a 7% annual interest rate.

No more nuts than paying back 400K on a 150K mortgage!

vtadave
4 years 6 months ago

I find it pretty funny that Major League Baseball has no problem loaning $25 million to a disaster like the Mets while at the same time denying the Dodgers $200 milllion from FOX. I know it’s not apples to apples, but it still caught my attention as a Dodgers fan.

4 years 6 months ago

You think the Dodgers are less of a disaster than the Mets? 8-|

YanksFanSince78
4 years 6 months ago

I think the difference is that every team is allowed a certain amount of a loan from mlb but the loan for the Dodgers was from a TV entitity. Might not be a valid reason though.

alexchicago14
4 years 6 months ago

Must be weird to ask for $25Mill to finish 3rd or 4th place…..

OrangeCards
4 years 6 months ago

They’ll pay it back as soon as they start seeing returns on their latest hot investment opportunity … Just give em time.

4 years 6 months ago

hahahahhahahahahahahaha…..enjoy the season Mets fans !!!!!!!!!!

The_BiRDS
4 years 6 months ago

Really? New York needs a load?Never thought I would ever see that headline.
Mets change their name to
The New York General Motors
has a good ring to it

4 years 6 months ago

Or better yet, The New York Expos

stickyone
4 years 6 months ago

don’t scoff that hard. GM paid the money back that was a loan, the treasury sold a bunch of their stock for a profit, and GM just turned their first full year profit in ages.

I hope the loan to the mets turns out that good!

besides, it was really like borrowing from a bank (which teams do quite often). Just had to be guaranteed by MLB. And the mets are paying it back, so NBD.

Bo
4 years 6 months ago

Two words:

Liquidate assets

4 years 6 months ago

Any Mets fans out there who still think you can sign Pujols this winter?

4 years 6 months ago

Most mets fans don’t want him. Anyway I’m going to do my part as a Met fan and not buy a Ticket until the Wilpons sell the team. Make it harder for them to fix this “short term” Liquidity problem.

johnsilver
4 years 6 months ago

Ummm. Does this mean the city of NY becomes a 1 team town, much like the cities of Boston and St Louis did?

Looks like a case of “fold ’em” here. Who wants to spend money on this cluster pile and why should the rest of the owners spend good money bailing out this mess? This is the Wilpon’s problem and the MLBPA can go off on any kind of tirade they want.

4 years 6 months ago

No, Steinbrenner wants the small market teams to move there, didn’t you hear?

icedrake523
4 years 6 months ago

“why should the rest of the owners spend good money bailing out this mess?”

Why should owners of small market teams be allowed to pocket money from revenue sharing?

stickyone
4 years 6 months ago

it was a loan, paid back with interest. Not exactly a bail out.

xhausted_grad
4 years 6 months ago

the bail out was a loan, paid back with interest

4 years 6 months ago

If this financial mess persists any longer then i really hope they sell the team. As a huge mets fan i dont mind this offseason. We need a season to regroup and let money come off the books. But next season looks to be a HUGE offseason and if we are in financial distress still and do not make a splash that is just not right and unfair to mets fans. I already have not renewed my season tickets for last year and this year, and if they think signing mid level guys next year and keeping the payroll down bc money problems, then that would be unacceptable. We are sticking with you mets! But please, dont think we will keep siding with you if you selfishly hold onto a team that you cannot properly fund. It would just be unfair.

stl_cards16
4 years 6 months ago

“I already have not renewed my season tickets for last year and this year” then next “We are sticking with you Mets”

That is some great support you are showing!

Verlander_Will_Save_Us_All
4 years 6 months ago

This is getting ridiculous. I think the MLB needs to contemplate taking over the team if they lose this trial. The Wilpon’s are going to go bankrupt.

4 years 6 months ago

Man, Weiner is all over the news today