Report: Mets approach banks to raise cash

Richard Sandomir in the Times reports Mets owners are trying to reorganize debt and increase loans in order to aid their cash flow. Writes Sandomir:

Under one option, SNY, the team’s lucrative cable network, would refinance its existing $450 million loan and borrow still more toward paying off some of the team’s heavy bank debt and toward other possible purposes, like day-to-day operating expenses or the twice-a-year payments on Citi Field’s bonds. The team’s owners, and their SNY partners, could also get cash dividends from the proceeds. ...

“SNY is a better credit risk than the team,” Marc Ganis, a sports industry consultant, said. “It’s not subject to Major League Baseball’s debt restrictions, and unlike a team’s expenses that go up and down, SNY’s are easily quantifiable.”

Rob Tilliss, chief executive of Inner Circle Sports, a sports investment bank, said, “They’re moving the debt from one side of the ledger to the other.”

Read the full Times story here.