Sources: Wilpons May Be Forced To Sell Mets In Near Future

Mets Owner the Wilpons "are so cash-strapped that they will have to sell" the team if it has a "losing season or two and attendance falls," according to sources cited by Josh Kosman of the N.Y. POST. There is "growing evidence that the owners are in serious need of dough, and the team -- saddled with roughly $700 million in debt -- is not turning a profit." A source said that Mets Chair & CEO Fred Wilpon "took a second mortgage on the team, refinancing roughly $375 million in loans, with $75 million of that going to the Wilpons themselves." Sources said that the Mets are "losing roughly $10 million a year, including depreciation and interest payments." Attendance at Citi Field is "on pace to be 2.6 million this year, 19 percent less than its debut year in 2009 and 35 percent less than the team's last season at Shea Stadium." A sports investment banker said, "If the Mets become a mediocre team, you wonder if the team is sustainable at their debt levels. That $10 million loss could become $20 million fast." Many observers said that the team "could use a star pitcher for a pennant run, but getting that player would entail piling up more payroll and operating losses." Sources said that "one of the team's debt covenants states that payroll cannot increase." The Wilpons also own SportsNet N.Y., and a source noted that although the channel is profitable, it "owes money equal to roughly six times its earnings before interest." But experts said that the Wilpons "don't want to sell" the team. A source said, "They are planning to rebuild their wealth through SNY, and in five to seven years, you'll see recovery for the family" ( N.Y. POST, 7/4 ).

Sources Say Wilpons Do Not Want To Sell The Franchise