Mets seeking to raise cash from banks to reorganize debt

In a report for the New York Times, Richard Sandomir says the Mets are talking to banks in an effort to raise more cash so to be able to reorganize their debt.

According to Sandomir, one option would be to refinance SNY’s $450 million loan and then borrow more to repay some of the team’s “heavy bank debt” and towards other items, such as day-to-day operations of the team or the bonds currently out on Citi Field.

The owners and SNY’s partners could get cash dividends from the proceeds of this redistribution of debt.

Sandomir says that due to the increasing value of SNY, the network is likely immune from the team’s revenue issues.

“SNY is a better credit risk than the team,” Marc Ganis, a sports industry consultant, told Sandomir. “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.”

However, Sandomir notes that depending on the interest rates charged during the refinancing, SNY’s debt payments could rise which could in turn mean smaller profits for the network.

“Any time you refinance, there’s some hesitation and concern,” Wayne McDonnell, a professor of sports management at New York University, told Sandomir. “But this is a nice opportunity. It says to me that the Wilpon family is ready and willing to reassess some of the things that have hung over their heads for so long.”

For more on the Mets financial situation, check out the New York Times.