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Report: Mets lost $10M; loan avoids default

2/22/2014

The Wilpon family, weeks away from owing a $250 million payment on an expiring loan, now has the refinancing fully in place, the Post reported.

The report says the Mets lost $10 million in 2013, but may now turn a profit this season with the payroll equivalent and an extra $25 million in national TV revenue being distributed by MLB. That is, if there is not a further attendance drag now that there is not the carrot of an All-Star Game at Citi Field to entice ticket purchases.

Writes Josh Kosman:

Until recently, [Fred] Wilpon and [Saul] Katz didn’t know if the banks, as part of the re-fi, were going to insist the owners pay down some of the loan to get the deal done. That didn’t happen. But had the talks taken a bad turn and a cash payment been demanded, it was not clear the owners had the money.

Wilpon and Katz lost much of their fortune in the Bernie Madoff Ponzi scheme.

The new five-year loan is priced at Libor plus 3.25 percent, the source said. Bank of America is the lead arranger.

Major League Baseball still needs to approve the loan. The final closing is likely two-to-three weeks away, the source said.