Wilpons say they're over financial problems, BUT...

[Youk]

Fred Wilpon made a big deal the other day about how he is past his financial problems. That is true, but the team itself is still in massive debt.

http://www.forbes.com/sites/mikeoza...-but-team-and-its-network-owe-over-1-billion/

Mets Owners Are Debt Free But Team And Its Network Owe Over $1 Billion

New York Mets owner Fred Wilpon recently told ESPN that he and his partner, Saul Katz, no longer have any personal debt. But don’t expect the New York Mets to begin spending like a big-market team any time soon.

The baseball team and the regional sports network of which it owns 65%, SportsNet New York, have over $1 billion in debt combined, according to sources. The Mets have about $430 million of debt while SNY has near $750 million of debt. Of that $750 million, the owners of the Mets are on the hook for some $450 million, putting their total obligations near $900 million.

A phone call and email to the team for confirmation of the debt figures were not returned.

With the combined enterprise values of the Mets and SNY around $2 billion, leverage is above 50%. Moreover, the team pays $50 million a year in annual ballpark PILOT bond and rent payments that come from Citi Field’s revenue. Attendance at Citi Field is down significantly the past three years.

Standard & Poor’s stated in a December report in which it downgraded Citi Field’s bonds one notch, to two levels below investment grade, “The negative outlook reflects our expectation that the project cash flow will have slight cash flow declines in the near future before it begins to stabilize.”

Despite signing David Wright in the off-season to a $138 million extension, the team’s payroll will likely remain in the middle of the league the next few seasons. GM Sandy Alderson has his work cut out.

:bosh:

 

[Goober]

Yeah but Empire said the Mets would be competing for a playoff spot in 2014. :rofl:

 

[EmpireWF]

Yeah but Empire said the Mets would be competing for a playoff spot in 2014. :rofl:

Financially, they will have the ability to do so.

As of today, the money assigned to team payroll for the upcoming season is about $94M. But entering next offseason:

1. Barring some unforeseen AMAZING season from Johan where he reverts to his Minnesota form, he will only cost $5.5M in the form of a buyout after this season. They may trade him this summer (he'd have to waive his NTC) and could throw in some of that buyout money but they are not going to be in a position where the $25M 2014 option becomes Johan's to exercise (it would turn into a player option if he pitches 215 innings this season and is on the active roster for the final 30 days of the season).

2. John Buck's contract ends and his $6M comes off the books.

3. Frank Francisco's contract ends and his $6.5M comes off the books.

At that point, the only expensive deal on the books they have is David Wright. I don't foresee them giving Ike Davis a long-term deal during the season. Even Jon Niese and his long-term deal, he'll only make $5M next year.

So, that's nearly $40M off the books from those 3 players specifically. Does this mean they're automatically in the market for Cano (if NYY lets him hit FA) or Ellsbury? Of course not. But, they'll have some kind of flexibility to improve the offense...which they did not have or do this offseason.

 

[Goober]

I still don't see how that takes the Mets from a 70 win team, to a 90 win team.

 

[Youk]

They'll have the flexibility, but that doesn't mean much. If you're saying they can go out and buy those wins, come on....doesn't always work that way. I guess the Astros should be a 90 win team next year too, since they won't have much payroll.

 

[NAHSTE]

Financially, they will have the ability to do so.

As of today, the money assigned to team payroll for the upcoming season is about $94M. But entering next offseason:

1. Barring some unforeseen AMAZING season from Johan where he reverts to his Minnesota form, he will only cost $5.5M in the form of a buyout after this season. They may trade him this summer (he'd have to waive his NTC) and could throw in some of that buyout money but they are not going to be in a position where the $25M 2014 option becomes Johan's to exercise (it would turn into a player option if he pitches 215 innings this season and is on the active roster for the final 30 days of the season).

2. John Buck's contract ends and his $6M comes off the books.

3. Frank Francisco's contract ends and his $6.5M comes off the books.

At that point, the only expensive deal on the books they have is David Wright. I don't foresee them giving Ike Davis a long-term deal during the season. Even Jon Niese and his long-term deal, he'll only make $5M next year.

So, that's nearly $40M off the books from those 3 players specifically. Does this mean they're automatically in the market for Cano (if NYY lets him hit FA) or Ellsbury? Of course not. But, they'll have some kind of flexibility to improve the offense...which they did not have or do this offseason.

Good thing the 2014 free agency class is one of the weakest of all time!

 

[EmpireWF]

Indeed, at the same time they'll need to acquire a RF unless Marlon Byrd goes apeshit. Depending on how Den Dekker plays between AAA and the bigs, he may be an option in CF by next year. But whether through FA or trade, a starting OFer who is capable of not being a drag on the lineup is not out of the question.

Of course thus is predicated on Duda bouncing back and perhaps a CF emerging out of the Kirk, Cowgill platoon or Den Dekker later this year. If none of this pans out, they're right back where they are now! come next offseason.

 

[Woy]

https://twitter.com/KFCBarstool/status/303571943821545474

@KFCBarstool: The 2 highest paid #Mets outfielders this year are Jason Bay and Bobby Bonilla. That is literally unbelievable.

:lol::lol::lol: