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Report: Mets approach banks to raise cash

10/6/2012

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.