Even CNNMoney is getting in on the Mets-Madoff story now. They correctly point out that the Mets’ financial situation could get more desperate quickly as their first player payroll is due on April 15 and debt payments come due not long after that.
There isn’t much in the video that we didn’t already know. But it’s interesting to see the Wilpon’s faces and tone of voice as they made a statement last month about the situation.
We also got a glimpse into what the Mets-owned SNY response would be last night during the opening game telecast. Clearly, Gary Cohen and Keith Hernandez were reading prepared statements about the Madoff lawsuit. Their prepared statements gave no indication of their true feelings, thoughts, or concerns about the situation. As employees of the Mets-owned TV station, I would expect nothing less if they want to keep their jobs.
In this week’s installment of the weekly Mets Report video with Kerel Cooper of On The Black, we talk about our predictions for the Mets this year. The Vegas line is 77.5 wins this year and check out the video to see if we took the over or under.
Also this week, we talk about our first impressions of Terry Collins as the manager of the Mets. He had a terrible ending to his managerial stint in Anaheim and gets another (and probably final) chance with the Mets.
I was incredibly impressed with the response to my last posting. The traffic was tremendous and I can only assume, especially since there were only five comments, it was because there is a silent majority of Mets fans out there who are thinking the same thing. This is the first Spring Training in history (at least in my history) where hope is not Springing eternal and here’s why…
For me, this Spring Training started out as any other. The players showed up, most in great shape, Terry Collins proved pretty quickly that he runs a tight ship and I am a huge fan of Sandy Alderson. He’s the only person qualified to handle this unique mess.
One thing bothers me though…. The current ownership group was exposed for flat out lying to the fans by stating their Madoff losses would have no effect on the team. At the same time we are finding out the exact opposite from the traditional media.
As Mets fans do you accept that? Do you accept being a worthless, potentially last place team in the largest media market in the world? Oh yeah, you also compete with the NY Yankees so many of those paying fans are never coming back.
We all think that payroll is being freed up for major acquisition’s but it really looks like payroll is being freed up to cover losses. When you lose $50 million a year you’re not going out and signing any big free agents. The Mets just don’t have the money and since they’re already awash in debt they can’t borrow and spend their way out of this predicament. Continue reading “Lost My Mets Hope Springs Eternal – Spring Training Magic”
It’s a bad time to be trying to sell a piece of the Mets. The 2011 Forbes MLB valuations are out and the Mets are down 13% from 2010, the biggest drop of any team. On average, team values increased by 7%. So the Mets are down 20% from the average team. Forbes noted a $6 million operating loss by the Mets last year and a 25% reduction in gate receipts in their valuation.
Throwing dirt on the Wilpon’s grave, Forbes also noted today that the Mets 2011 ticket sales are frighteningly dismal. They cite a report at MLB offices noting that the Mets have only sold 600,000 tickets so far and are projecting 3 million for potential buyers. The author writes that this translates to only 7,000 season tickets sold to date. That’s hideous!
I have to think the Forbes report will impact the sale of the a minority stake in the Mets. It’s been well reported that the debt against the team is heavy and a lower valuation of the asset is just what the Wilpons don’t need right now. I still think that they’ll have to relinquish their majority ownership at some point in the future.
Here’s this week’s video that I did Sunday night with Kerel Cooper of On The Black. We did this video before the official announcement of Oliver Perez’ release was made. We also talk about the release of Luis Castillo, Jason Bay’s comeback from injury, and the latest on the Madoff lawsuit.
I’m back on board with this organization today. Many of us have been so critical of the Mets over the last four years and, in many cases, rightfully so. There aren’t many teams that would eat $18 million in contracts between Oliver Perez and Luis Castillo in three days like the Mets just did. That shows some smarts and some guts to move forward in a new direction.
I have to admit that I was okay with the Perez contract before the 2009 season. If you remember, it was between Perez and Derek Lowe, who ended up getting a 4-year/$60 million contract from the Braves. By comparison, the Perez deal was a bargain. A bargain that turned into a nightmare.
Since Perez signed the big contract in 2009 he’s gone 3-9 in 31 games with a 6.81 ERA. It was time to move on without Perez. I applaud this team for making a decision that couldn’t have been made lightly considering the money that was on the line. And I won’t even get into the Wilpon’s current financial situation.
Although Fred and Jeff Wilpon and Saul Katz are wealthy, they don’t know very much about investing their money or how it’s handled. At least that’s their story in a legal filing attempting to dismiss the Madoff trustee lawsuit against them for more than $1 billion.
The defendants have consistently stated that the trustee’s lawsuit is a work of fiction. But reading through the legal filing from the Mets owners tonight, I’d have to say that their side of the story doesn’t come across well.
I find it hard to believe that the Wilpons and Katz aren’t sophisticated investors and that’s the argument that they’re making. Anyone that controls billions of dollars makes it their business to be a sophisticated investor. Casting themselves as bumbling fools that happened to make more money than most people see in their lives is ridiculous.
The Mets owners need to get serious about settling this case. This stunt of a dismissal motion is nothing more than a PR tactic being used to try to fight the lawsuit through the media. If they don’t get serious about settling the case and solidifying their ownership position with the Mets, it’s going to continue to hurt the team in multiple ways. Notably, the players will have to continue to answer questions day after day about the team’s finances instead of the game on the field.
This “uncertainty” is going to continue as long as the owners continue to make statements like the following from Saul Katz:
“I don’t do well in the markets, the stock market,” Katz said. “I’m not good at it, it’s not my business. I don’t have an active account anywhere.”
Fred Wilpon was asked in a deposition if he knew how Madoff was able to make money investing:
“I’m not an investment person…so I wouldn’t have any kind of expertise.”
If this is the strategy that the Wilpons and Katz plan to employ, they’re in bigger trouble with this lawsuit than I thought they were. Playing dumb is never a good defense and for people that built an empire in New York it’s a really bad idea.
The Mets Report 