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Wilpons Newsbeat

Tuesday, December 22, 2015

The New York Mets Operate Like A Ponzi Scheme

How can the Mets hope to contend while operating on the cheap?

Back in 2008, the team’s investments with Ponzi schemer Bernie Madoff were discovered to be a fraud. More than $500 million in assets Wilpon and Katz thought they had—and had borrowed against—vanished. Accordingly, just to stay afloat, they needed to take out a $430 million loan against the team and $450 million against their majority ownership stake in SNY (a network started with a loan from Madoff, incidentally).

Ever since, the Mets have managed to get by annually by diverting revenue from their baseball and television operation into the financing of debt. Prior to the refinancing of the past two years, the annual interest on these two loans plus debt balloon payments of more than $43 million have exceeded team payroll itself.

The refinancing of the two loans has extended their due dates out five years, so this arrangement is set to continue for a long time to come. And the debt balloon payments run until December 2045, when currently youthful pitching ace Steven Matz will be 54 years old.

 

RoyalsRetro (AG#1F) Posted: December 22, 2015 at 12:22 PM | 11 comment(s)
  Beats: mets, wilpons

 

 

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