The owners of the New York Mets had to reach out in recent weeks to Bank of America in order to secure a $40 million bridge loan, Michael S. Schmidt and Richard Sandomir report in The New York Times.
The Mets acknowledged the loan and asserted Major League Baseball and the team’s existing lenders had signed off on the added debt.
“The bridge loan was approved by Major League Baseball and the syndicate of lenders to the Mets,” the team’s statement read. “The process for the sale of minority shares in the team continues to go very well.”
Write Schmidt and Sandomir:
People familiar with the team’s situation have said the owners had firm commitments from at least seven investors interested in buying a small share of the team for $20 million apiece. Still, until all are sold, none of the investors have had to turn over cash. Vince Gennaro, a consultant to several major league teams, said that the $40 million loan “says to me that their finances continue to be tight, that there is a cash pinch.” He added: “The team underperformed, and this tides them over until they get their money. They need cash flow.” Now, Gennaro said, between the bridge loan and the $25 million owed to baseball, “the first $65 million has to go out the door” should the team sell an adequate number of shares in the team.