- Adam Rubin, ESPNNewYork.com
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Forbes, which annually has its valuations disputed by the Mets, valued the team at $747 million. That's down from $858 million a year ago.
The magazine reports the Mets are one of only three MLB teams to see its value decline. The others: the Padres and Indians. The average franchise is worth $523 million.
It cites a 13-percent drop in revenue fueled by a 25-percent drop in gate receipts for the Mets' operating losses.
The situation with the Mets looks particularly bleak. The emergency $25 million loan from baseball has bought the Mets’ owners time to attempt to raise money by selling an ownership stake in the team. The purpose of the equity financing is to help fund expected operating losses in 2011 and potentially 2012, and pay down the league’s loan and other debt. Crushing payments are looming as early as April on the Mets’ $145 million payroll for the upcoming season and other obligations. The Mets originally wanted to sell only 25% of the team. With $450 million of debt, it seems the Mets would be lucky to get even a modest $75 million for that stake, especially considering the discount often applied in sales of minority holdings. [Fred] Wilpon and [Saul] Katz have publicly conceded they may need to sell more than a quarter of the Mets, but they insist on maintaining a controlling share. Bankers are drawing up some creative solutions. Still, the math does not look good.
Read the article here.