Mets: ‘No Bankruptcy Services’ Being Provided By CRG Partners
NEW YORK (WFAN/AP) — The cash-strapped Mets have hired the consulting company that worked with the Texas Rangers during that team’s bankruptcy and sale in 2010.
“Mets Limited Partnership engaged CRG Partners to provide services in connection with financial reporting and budgeting processes,” the team said in a statement late Thursday, responding to a report by SBNation.
“Lots of talk about CRG,” the team later posted to its official Twitter account. “To be clear: CRG’s services aren’t bankruptcy-related. There are no bankruptcy services being provided by anyone.”
The Mets have been trying to raise $200 million through the sale of $20 million non-controlling shares following the collapse of a deal last summer with hedge fund manager David Einhorn.
They also owe $25 million to Major League Baseball, a loan whose repayment was extended from November until March; and $40 million to Bank of America. General manager Sandy Alderson said last month the team lost $70 million, although he didn’t put a timeframe on the losses.
Last March, Forbes reported the Mets had lost 13 percent of their worth amid legal and debt problems. Listed by the publication at $858 million in 2010, the franchise was valued at $747 million in 2011.
The trustee recovering money for victims of the Bernard Madoff Ponzi scheme, Irving Picard, originally sought $1 billion from the Mets’ owners, claiming they should have known millions they collected from Madoff represented phony profits. Owners Fred Wilpon and Saul Katz have denied the claims in lengthy litigation.
U.S. District Judge Jed Rakoff dismissed nine of 11 counts on Sept. 27, limiting the exposure of the Mets’ ownership to about $386 million. A trial is scheduled to start March 19.
“In times of unprecedented economic change, organizations are facing unique and daunting challenges,” CRG Partners’ website reads. “CRG Partners works with organizations to address these challenges, resolve complex problems and significantly improve operating performance.”
Mets fans: Your thoughts on the hiring of CRG Partners? Be heard in the comments below…
(TM and Copyright 2012 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 This material may not be published, broadcast, rewritten, or redistributed.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.)