Report: MLB Done Loaning Money To Struggling Mets

NEW YORK (WFAN/AP) — Major League Baseball “will not make another major loan” to the cash-strapped owners of the Mets, according to the New York Times.

That’s not good news for a team reportedly trying to secure a second loan to offset operating expenses.

LISTEN: 1010 WINS’ John Montone talks with New Yorkers about the Mets situation

Citing two unidentified people briefed on the club’s finances, The Times reported on its website Tuesday night that the Mets can’t count on receiving any more money from the commissioner’s office to help cover expenses.

“Baseball’s decision to restrict the Mets’ access to further emergency funds could leave the team’s beleaguered owners … without their best remaining source of cash as they struggle to maintain control of the team,” the paper reported.

When contacted by The Associated Press, a Mets official declined to comment. MLB spokesman Pat Courtney also had no comment.

The New York Post reported on Monday that the Mets are “desperately” seeking a new loan to cover basic operating costs.

“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,” according to the paper.

RELATED: Fay Vincent: $25 Million Loan A ‘Concern’

Hounded by a multimillion dollar lawsuit filed by the trustee trying to recover money for victims of the Bernard Madoff Ponzi scheme, the Mets acknowledged Friday that they received a loan from MLB in November to help meet their financial obligations.

The New York Times and Daily News reported that the loan amount was $25 million.

According to The Times’ report Tuesday, the two people briefed on the situation said MLB could possibly reassess its stance in the near future if it thought it had to protect more important interests — such as preventing a Mets fire sale.


Also, the people suggested that baseball could make a smaller, short-term loan to help the Mets avoid defaulting on particular payments such as player salaries, but it wouldn’t be hefty enough to save the team’s owners long term, the newspaper said.

The trustee, Irving H. Picard, sued Mets owner Fred Wilpon, brother-in-law and team president Saul Katz and various family members and entities related to Sterling Equities in December, seeking at least $300 million.

Picard claimed the Mets profited with their Madoff investments and ignored warnings that his high returns might be false. Losses in the Ponzi scheme are estimated at around $20 billion.

The Wilpons have said they are victims in the scheme.

The Mets announced in January they were looking to sell a non-controlling interest in the team of 20 to 25 percent to raise several hundred million dollars. Wilpon insisted his family would remain in control of the team.

Less than three weeks ago, Moody’s Investors Service lowered its outlook on the company that operates the ballpark used by the Mets 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.

What does this mean for the future of the Mets? Let yourself be heard 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.)

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One Comment

  1. Stan says:

    Hey Fred,
    What did you do with all the $$$$ Bernie gave you??????. I’d like to help you out with some $$$$$ But it cost soo much visiting Citifield the last 2 years that I’m a little tapped out at the moment….Would you accept a credit card????

  2. JOC says:

    Does anyone remember when poor Freddie put in a poison pill forcing Doubleday to sell his share? Doubleday was compelled to enter a one-sided arbitration where MLB (read, Wilpon’s good pal Bud Selig) ruled the Mets were not worth as much as touted so Doubleday walked away w/a lot less than expected.

  3. Big Mel says:

    Ive said it before and I’ll say it again sell the team Mutt and Jeff back to Doubleday who wasn’t afraid to spend the cash!!!

    1. ChimneyStew FurnacePudding says:

      Say, I like that. Mutt and Jeff.

      Pretty funny.

      I agree though. I think the best thing at this point would be for the Wilpons to sell and bow out of the business.

    2. optimus2g says:

      I would love that. I don’t think Doubleday is interested though anymore.

    3. Jake says:

      Mel, the Mets have a payroll of $150 million for this year, making the Mets the 4th highest payroll team in the majors. It was also $150 million last year and the Mets payroll has been the highest in the NL the last 7 years.

      The Mets payroll is not that of the San Diego, Piittsburgh, Oakland & Florida in the low $50’s. Mets have spend a ton of money on signing free agents the last 15 years. Where have you been?

      Continuing to denying the truth of the Mets payroll ($150 Million a year) by thinking they don’t spend money and only the Yankees do is stupid.

    4. Mac Claire says:

      Yeah. It’s pretty clear that the Wilpons can’t go much further as owners of the Mets, and with Doubleday the Mets had a good track record.

  4. Jeff says:

    there’s a reason why Alderson was hired as the GM & it was not by choice. he was hired to reconstuct this team in order for it to be sellable. Right now the Wilpon are in deep dept of over 1.6 billion dollars, between money borrowed for the team, the new stadium and TV network. Not counting the Madoff mess. What owner wants to take on such a hugh dept. Mets were worth around $800 mil, that has now gone down dramatically. This is what happens when you make a deal with the devil.

    1. Smiling ToeNail PepTalk says:

      “What owner wants to take on such a hugh dept.”

      Yeah really!

      1. Jeff says:

        thanks for correction Mrs. Kotter, but you clearly understood what was written and that’s all that matters. .

      2. Smiling ToeNail PepTalk says:

        What correction?

        I was picking out the EXACT sentence I wanted to reply to.

  5. George39 says:

    Fire sale!! Send Johan to the Bronx! Go Yanks!

    1. MeatBudget ThunderBoomer says:

      No Thanks. No Yanks!

  6. Fred U Rgon says:

    Stay away from the ballpark Mets fans. It is now up to you the fans to force these lying dolts out the door.

    Having problems making payroll Freddie? Try making mortgage payments on that stadium while you are drawing 1500 a night.

    Poor Freddie. Anyone think a judge will accept the “I thought he was doing insider trading, not running a Ponzi scheme” defense?

    WIlpon will go down in the annals of laughingstock former owners. Like Bruce McNall of the LA Kings and the guy that sold the Eagles to cover gambling debts.

    1. MeatPlump EggBath says:

      ” Poor Freddie. Anyone think a judge will accept the “I thought he was doing insider trading, not running a Ponzi scheme” defense? ”

      I highly doubt it.

  7. Jack says:

    Time to sell the team Freddy, your not the millionaire it takes to own a MLB team, tiome to come back into reality you rat thief.

    1. RatNapkin SpankOdor says:

      What a terrible, terrible mess this has become. What a shame.

  8. Rugbyball says:

    Well, there goes another season. Lets hope 2012 will be a better one for the Mets, hopefully new owners preferably Mark Cuban as owner.

    1. John says:

      and how many championships have the Mavaricks won in the 10 years Cuban has been the owner? NONE Also, being that you’re a Mets fan & who are known for not being too bright. Cuban has been acused of insider trading. He’s due in court soon on this case. I do hope he buys the Mets. The Mets are already a joke, Cuban with continue the tradition. Maybe he & Wilpon can consolidated their cases.

    2. MeatNapkin EggBlip says:

      Yeah really.

      I was feeling hopeful when Alderson was hired that some good stuff might happen this season but the more I hear about this mess, the less hopeful I feel about this season.
      Hopefully things will get better in 2012

  9. John Green says:

    The sky is black with chickens coming home to roost.

    1. ThroatGadget NeckClutter says:

      Definitely a dark cloud hanging over Citi Field.

Comments are closed.

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