The New York Mets are feeling the pinch financially, with the New York Times reporting on how the team has received a $40 million bank loan since the end of the baseball season. The loan is intended to keep the team going through the tough times. The Mets are currently trying to raise money through the sale of minority stakes in the club.
A Mets statement emailed to the NY Times last night said:
“The bridge loan was approved by Major League Baseball and the syndicate of lenders to the Mets. The process for the sale of minority shares in the team continues to go very well.”
The $40 million was transferred to the Mets in the past six weeks from Bank of America. News of the loan emerges just days after Mets shortstop Jose Reyes signed for the Miami Marlins for a cool $106 million.
Mets owner Fred Wilpon (currently involved in legal battles with the trustee in charge of recovering money for investors in Bernard Madoff’s Ponzi scheme) has revealed the team lost $51 million in 2010. Meanwhile, General Manager Sandy Alderson admitted to reporters only last week that the club lost $70 million in 2011.
It seemed the Mets may be over their money troubles after David Einhorn, a manager of New York’s $7.8 billion Greenlight Capital Inc. hedge fund, offered $200 million for a 33 percent share in the team. However, Einhorn withdrew from negotiations after he accused the Mets of switching contract terms late in the deal.
When the Einhorn discussions ended on September 1, Wilpon released a statement saying:
“We will engage with other individuals, some who have been previously vetted by Major League Baseball, along with other interested parties, regarding a potential minority investment into the franchise.”
Better hurry up, Fred.