NEW YORK -- New York Mets owner Fred Wilpon and family, who faced a massive $250 million loan against the team coming due in the next few months, have successfully arranged for it to be refinanced, according to a published report.
The Post reported that the refinanced loan will not come due for seven years, freeing the cash-strapped owners from an immediate, burdensome obligation that could put their ownership of the team in peril.
The newspaper added that interest payments will remain about the same for team owners under the new terms. They will not be required to immediately pay down any principal as part of the refinancing agreement -- avoiding the type of immediate lump-sum obligation that could trip them up.
The refinanced loan reportedly also does not restrict the Mets' payroll, whereas the original loan's terms capped how much the Mets could spend on players. The Mets' payroll currently is about $87 million for 2014 -- well below what is customary in a large market such as New York.
The owners have faced financial peril in recent years in part because they invested in swindler Bernard Madoff's Ponzi scheme. They recently sold minority ownership shares in the club in order to pay down debt, including a loan from Major League Baseball.