Report: Mets ‘Desperately’ Seeking Second Loan
NEW YORK (WFAN/AP) – There may be more trouble in Flushing.
According to the New York Post, the Mets are “desperately” seeking a second loan to offset operating expenses.
“JPMorgan Chase … is trying to recruit other institutions to join a syndicate to put together a new loan that would tide the Mets over until they sell a minority stake in the ballclub,” reported the Post. “A well-placed source said both the Mets and Major League Baseball are exerting strong pressure on JPMorgan to make that loan happen.”
The new loan could add up to “tens of millions of dollars,” reported the paper.
“This is a very risky loan,” said one Post source. “You don’t lend into a distressed situation.”
Hounded by a multimillion dollar lawsuit filed by the trustee trying to recover money for victims of the Bernard Madoff pyramid scheme, the Mets acknowledged last week that they received a loan — reported to be around $25 million — in November to help cover expenses.
“We said in October that we expected to have a short-term liquidity issue,” the team said in a statement Friday. “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 Mets announced last month they were looking to sell a non-controlling interest in the team of 20 to 25 percent to raise several hundred million dollars. Fred Wilpon insisted his family would remain in control of the team.
Less than two weeks ago, Moody’s Investors Service lowered its outlook on the company that operates Citi Field because of the litigation. The ratings firm cut the outlook on Queens Ballpark Co. LLC to “Negative,” but maintained its “Ba1″ rating on the company’s bonds.
Would you loan the Mets money? Sound off in the comments below…
(TM and Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)