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The financially strapped owners of the New York Mets obtained a $40 million “bridge loan” from Bank of America in recent weeks to continue operations until minority shares of the team can be sold, The New York Times reported.
Major League Baseball previously loaned the team $25 million this year, which has yet to be repaid.
Mets principal owner Fred Wilpon and family hoped to receive a $200 million cash infusion from prospective minority investor David Einhorn, but that deal unraveled in September.
Wilpon and family since have sought to secure roughly 10 minority investors at $20 million apiece. A source familiar with that pursuit recently told ESPNNewYork.com the Mets had commitments from seven investors, but that none of the money had yet to be collected.
Those $20 million blocks can be viewed as investments or loans. That is because the purchasers of minority shares have the option of having their principal returned in six years at 3 percent annual interest—essentially making it a six-year certificate of deposit rather than a long-term purchase of a stake in the team.
Posted: December 13, 2011 at 01:38 AM | 40 comment(s)
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