Mets Debts: current and future estimates
The best bullet point breakdown of what the New York Mets baseball team owners may owe — on top of the $300 demanded by the Madoff trustee suing them — that I’ve read so far comes from MLB Trade Rumors. It’s a complicated mess with lots of moving pieces and they do a nice job.
Key takeaway: the Madoff trustee Irving Picard is suing for $300 million in fictitious profits from Mets owners Fred Wilpon and his business partners Saul Katz et al. In addition, Picard seeks an unspecificied amount beyond that (the New York Times reports a trustee lawyer saying it “could reach beyond $1 billion”) alleging they should have known or suspected Madoff’s scheme.
Current debt breakdown of Mets business operations comes to us via Josh Kosman of the NY Post. Turns out the organization is heavily leveraged, in part from using Madoff investments as collateral. Thanks Josh, great work. “Wilpon’s Mets empire has three components: the team, Citi Field and SportsNet NY, the broadcasting arm. Here’s a glance”….
Owes: $430M in debt
Pays: $30M a year in interest
Owes: $700M for construction
Pays: $50M a year to city
SportsNet NY (broadcast arm)
Owes: $450M in loans
Pays: $20M in interest
Profits: $100M a year; Wilpon gets $65M
Total debt = $1.58 Billion (assuming Wilpon’s exposure in lawsuits ranges from $300M to $1B)