Report: Mets Financial Troubles Mounting

Bernard Madoff's mugshot
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The New York Post is reporting that the Wilpon family’s financial situation is so precarious that they cannot add payroll through trades. The report states that adding a front line starting pitcher is the least of their problems. Their debt load is so heavy and attendance is down so much this season that if the trend continues for a season or two, they may be forced to sell the team.

It was almost one year ago that I wrote about the Madoff mess causing talk of the Mets being forced to sell the team. Now those rumors are back. You never really know exactly what the financial situation of the team is. But it’s not a good sign when the rumors of trouble are consistent and persistent.

The key points of the NY Post article are:

  • The team has nearly $700 million in debt
  • The Mets are losing about $10 million/year including depreciation and interest payments on the debt
  • Attendance is down 19% from 2009 and down 35% from 2008
  • SNY is profitable but is leveraged to roughly six times it’s earnings before interest
  • The Wilpon family refinanced about $375 million in loans and kept $75 million for themselves

The article has a little bit of information about the family’s investments in commercial real estate which has been in a down market for three years now. It doesn’t help that the Mets’ fortunes have been down for three years now either. And it won’t be easy to recover. The article states that one of the debt covenants prevents the team from increasing payroll. Taking on Roy Oswalt or Cliff Lee would be great this month. But the Mets can’t expect the Astros or Mariners to take back equal or more salary.

We may be stuck with the pitching staff as it stands now. Maybe John Maine or Oliver Perez will come back and start doing what seems unlikely to most of us. If not, we could be speculating on who will be buying the Mets in a couple of years. Hopefully, it won’t get to the point that the Rangers have this season.

Thanks to MLBTradeRumors for the link.

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Reds 8 – Mets 6 July 5, 2010

New York Mets starting pitcher Mike Pelfrey throws a pitch to the Philadelphia Phillies in the first inning of their MLB National League baseball game in New York, May 27, 2010. REUTERS/Ray Stubblebine (UNITED STATES - Tags: SPORT BASEBALL)

http://view.picapp.com//JavaScripts/OTIjs.jsTonight’s game had three story lines. First, Mike Pelfrey has been shaky for several starts but he was just plain bad tonight. He gave up 7 runs in 4.2 IP. 9 hits and 4 walks killed him. Pelfrey takes the loss and his ERA is over 3 now. Certainly, he’s still having a good first half but the last month or so he’s been on a downward spiral.

Second, there was one of the worst calls I’ve seen in a long time that led to Jerry Manuel getting thrown out. In the top of the fifth, the Reds had the bases loaded with no outs against Pelfrey. Scott Rolen was called out by home plate ump Jerry Meals on a foul tip held by Rod Barajas. Rolen argued that the ball knicked his arm. The umpires conferred and changed the call to a hit by pitch. Manuel argued and got tossed. It was completely ridiculous that umpires 90-100 feet away would have a better view of a hit by pitch than the home plate ump.

Third, the Mets made a nice comeback in the bottom of the fifth scoring five to get the score to 7-6. The rally was highlighted by an Angel Pagan homer, David Wright triple, and Alex Cora 2 RBI double. Pagan had another nice game with 2 hits including the homer to get his average over .300. But it wasn’t enough to get back into the lead.

Box score

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Preview: Reds at Mets July 5, 2010

Cincinnati Reds (47-36) at New York Mets (45-36) 7:10 pm

Mike Pelfrey (10-2 2.93) vs Aaron Harang (6-7 5.02)

TV: SNY   Radio: WFAN

What to watch: The first place Reds come to town for a three game series after winning three of four games in Chicago. Harang has pitched welll in his last three starts allowing 7 runs over 19.1 IP. The Reds have won two of those starts. Pelfrey is fresh off an All-Star snub. He’s been showing some wear in his last four starts but the Mets have won three of them due to good run support. Hopefully, he’ll come out with a chip on his shoulder tonight and kick it back into gear.

Don’t forget to visit The Mets Report Facebook page during the game to chat with other Mets fans! Connect with The Mets Report on Twitter too.

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Mets 2010 All-Star Lost Bonuses

One of the most interesting things about MLB contracts are the bonus clauses. They’re not allowed to give bonuses for most statistical performance entities. Many bonuses are structured around playing time or award selections. This is particularly true of free agent contracts and some arbitration eligible player contracts. I looked through Cot’s Baseball Contracts to see which Mets lost out on bonuses this year by not being selected to the 2010 All-Star game.

Here’s the list of lost bonuses:

  • Johan Santana – $100,000
  • Carlos Beltran – $100,000
  • Francisco Rodriguez – $100,000
  • Henry Blanco – $50,000

The Mets ended up saving $350,000 in bonus money this year and didn’t have to send the players above on a cross-country trip with the potential of getting hurt. It worked out really well for the Mets that none of their pitchers made the All-Star team. It’s always nice to have your players in the game for the exposure but the risk of a pitcher getting hurt is tough to swallow.

By the way, who would’ve ever thought that Blanco would have an All-Star clause in his contract?  He’s never been an All-Star in his career, so I don’t know where that came from.

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Mets 2010 All-Stars Wright and Reyes

David Wright will be the lone Mets starter in the 2010 MLB All-Star game. He’s making his fifth appearance this season and is making a really nice comeback from a dreadful 2009 season. I have to admit that I didn’t vote for Wright. My 2010 All-Star vote was for Scott Rolen at third base. I tried to be objective and I just think that Rolen is having a better season than Wright and he’s playing for a first place team. That has a little bit of weight in my mind.

Jose Reyes is coming off the bench this year behind Hanley Ramirez. It’s his third All-Star appearance and he’s on the roster because Troy Tulowitzki is hurt. Fellow Mets report writer John Wenk voted for both Wright and Reyes this year. I just didn’t see either one as a solid starter.

I’ve heard some griping from Mets fans that Mike Pelfrey wasn’t selected by manager Charlie Manuel for the pitching staff. But he’s scheduled to pitch Sunday against the Braves, so there’s no way that he could pitch in the game. It’s too bad because his numbers are right there for the All-Stars despite the fact that he hasn’t had his best stuff for the last four starts.

Audio-David Wright on 2010 All-Stars

Audio-Jose Reyes on 2010 All-Stars

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Mets 9 – Nationals 5 July 4, 2010

New York Mets' David Wright (L) greets teammate Ike Davis at the plate after Davis's two-run home run against the Washington Nationals in the third inning of their National League MLB baseball game in Washington, July 4, 2010. REUTERS/Jonathan Ernst (UNITED STATES - Tags: SPORT BASEBALL)

http://view.picapp.com//JavaScripts/OTIjs.jsThe Mets got a good start from Hisanori Takahashi through 5 innings. Unfortunately, he started the sixth inning and gave up 3 runs without getting an out. The bullpen was shaky, especially Bobby Parnell who gave up two hits in the ninth without getting an out. But Francisco Rodriguez made a nice recovery from yesterday’s meltdown to get the save without allowing a baserunner.

The Mets offense was all over Craig Stammen scoring 8 runs in the first four innings, 7 of them off Stammen. For the game they had 14 hits and 5 walks. Way too many baserunners for the Nationals to have a chance in this game. Angel Pagan had another big game going 3 for 5 with 2 doubles and 2 RBI’s. Ike Davis also hit his 10th homer off Stammen in the third.

The Mets leave Washington at 2-2 for the series and come home to face the Reds tomorrow.

Box score

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K-Rod and the Mets 2010 Bullpen

New York Mets pitcher Francisco Rodriguez follows through on a pitch against the Washington Nationals in the ninth inning of their National League MLB baseball game in Washington, July 3, 2010. REUTERS/Jonathan Ernst (UNITED STATES - Tags: SPORT BASEBALL)

http://view.picapp.com//JavaScripts/OTIjs.jsForget Cliff Lee, how about solidifying the bullpen so that the anxiety levels of Mets fans throughout the Tri-State can subside late in games?

Yesterday (7/3), Francisco Rodriguez blew his fourth save of the season as he failed to protect a 5-3 Met lead in the bottom of the ninth against the Nationals. Following Ivan Rodriguez’s walk-off single to right, there was no pounding of the chest, no blowing kisses and pointing to the sky for our closer. Instead, the loss dropped the Mets to a disappointing 2-4 on the current road trip against sub-.500 NL East foes.

At this point, I am reluctant to even keep my television tuned into games when K-Rod enters in a save situation. Simply put, K-Rod is lacking as a stopper. He lacks the intimidation factor he once possessed with the Angels. He lacks good movement and location of his pitches. And he no longer is able to blow hitters away with plus velocity. His fastball is as straight as an arrow, and he often hangs his curveball. K-Rod’s control is erratic, and he has made a habit of getting behind in counts and putting runners on base. Basically, Franky has not given Mets fans a reason to feel confident in the 9th inning with a 1-3 run lead this season. With all of this said however, the one ounce of acclaim I will give him is that when his change-up is working he can be effective. Continue reading “K-Rod and the Mets 2010 Bullpen”