New York Mets Owners Take $40M Loan

Share Button

The owners of the cash-strapped New York Mets have taken a $40 million bank loan while they try to sell minority stakes in the team.

A Mets spokesman confirmed Monday that a single major bank extended them the “bridge” loan in the last month or two. In November 2010, the club borrowed $25 million from Major League Baseball to tide it over.

Fred Wilpon and co-owner Saul Katz are trying to line up as many as 10 buyers for stakes worth $20 million to $30 million apiece.

Last month, the owners sweetened their pitch to prospective investors and said they are willing to pay three percent interest annually on the stakes over six years.

“The process for the sale of minority shares in the team continues to go very well,” the team said in a statement.

The Mets arranged for the new loan as some big bills were coming due. Last month, the Mets made a $15 million to $20 million revenue-sharing payment to MLB, in which all the teams combine 31 percent of their local revenue and then split the pot evenly.

On Thursday, the team must pay the New York City Industrial Development Agency $26 million for interest on bonds sold to build the team’s stadium, Citi Field.

The Mets’ existing bank lenders, led by JPMorgan Chase, are owed about $500 million. Although the team will lose roughly $70 million this year, the lenders believe they will be repaid because the Mets would fetch about $900 million through an outright sale.

Share Button