Four Points Flushing. The Official Hotel of the Queens Baseball Convention and The

Friday, June 5, 2020

Wilpon's greed is going to cost them again it seems.

From what I could peruse from the article is that Sterling Equities should have not been greedy about keeping SNY when they were trying to sell the team. The Mets organization is losing value and also with the team not making any money, the debts are starting to pile on. The article also says how the Mets should be fine to get through 2020 with their assets that they can sell and they have some cash flow but in 2021 they could be in some real trouble. I don't know if I want to buy a team with those troubles if I was an investor. I could the current ownership would try to make sure the debts aren't paid by them somehow. Keep an eye on this.

It may have just gotten a little tougher for Fred Wilpon to hang on to the New York Mets.
This afternoon, credit rating agency S&P Global Ratings announced it was lowering its ratings to BB+, from BBB, on the New York City Industrial Development Agency’s series 2006 $547.4 million payment-in-lieu-of-taxes (PILOT) bonds, $58.4 million installment purchase bonds, $7.1 million lease revenue bonds, and series 2009 $82.28 million PILOT bonds issued for Queens Ballpark Co. LLC (Citi Field), the baseball team’s ballpark. S&P said it was also assigning a recovery rating of 1, reflecting an expectation for very high (90-100%; rounded estimate: 95%) recovery in the event of a default.The Mets are losing money and have a mountain of debt: $350 million on the team and perhaps another $450 million on SNY, their 65%-owned regional sports network. According to my sources, it is likely the team has added to its leverage by borrowing from the league’s expanded credit facility to deal with the lack of ballpark revenue during the sport’s shutdown this season.
The ratings agency said: “A combination of cash on hand and liquidity can keep the project afloat until June 2021. We estimate cash and liquidity in the form of its debt service reserve can cover operations and maintenance (O&M) and debt service obligations for QBC(Mediagoon here. No not the Queens Baseball Convention's QBC) if the entire 2020 season is canceled, and if this occurred would be sufficient to support the first of two debt service obligations in 2021.” 
Read more from Forbes here.

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