The New York Post has reported numerous times that the Wilpon family’s financial situation is so precarious that they cannot add payroll through trades. The report states that adding a front line starting pitcher is the least of their problems. Their debt load is so heavy and attendance is down so much this season that if the trend continues for a season or two, they may be forced to sell the team, not just a portion like previous rumors had indicated. They will be forced to sell the entire franchise.
It was almost one year ago that the Madoff mess was causing talk of the Mets being forced to sell the team. Now those rumors are back. You never really know exactly what the financial situation of the team is. But it’s not a good sign when the rumors of trouble are consistent and persistent.
The key points of the NY Post article are:
-The team has nearly $700 million in debt
-The Mets are losing about $10 million/year including depreciation and interest payments on the debt
-Lost $50 million total in 2009 and another $50 million in 2010
-Attendance is down 19% from 2009 and down 35% from 2008
-SNY is profitable but is leveraged to roughly six times it’s earnings before interest
-The Wilpon family refinanced about $375 million in loans and kept $75 million for themselves
-The article has a little bit of information about the family’s investments in commercial real estate which has been in a down market for three years now. It doesn’t help that the Mets’ fortunes have been down for three years now either. And it won’t be easy to recover. The article states that one of the debt covenants prevents the team from increasing payroll. Taking on Roy Oswalt or Cliff Lee wouldn't be the greatest idea right now. And the Mets do not have the strongest farm system to fall back on.
Throughout the past few years during the "Minaya-Manuel" era, bad trades, and poor free-agent signings have clouded this team and their success. Take last year for instance, Jason Bay had a career year in 2009 with the Boston Red Sox and signed to 4-year contract worth $66 million. Bay went onto hit just 6 homeruns all season long in an injury-plagued 2010 campaign for the Metropolitans. At this point, winning is the only medicine for the Mets woes. However, the havent had a plus .500 season since 2008, and havent been in the Playoffs since 2006. It might be asking a lot to see the Mets play in October in 2011. EK's opinion - expect more Wilpon drama.
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