(image taken from Kaplan’s Korner)
I think deserve some credit for not recycling “What Part Of ‘They’re Broke’ Don’t You Understand?” for the 800th time, but full credit to the far more sophisticated Howard Megdal of Capital New York (above). Upon learning another round of distributions of recovered funds for victims of Bernie Madoff had been made available by a trustee, Megdal warns, “here are the numbers you have to actually remember, and what keeps Fred Wilpon and his partners up nights (and Wilmer Flores entrenched as a low-cost shortstop)” :
The Mets’ parent company, Sterling Equities, continues to finance the $250 million in debt against the team. Sterling also continues to finance more than $600 million in debt against SNY. Below is a partial schedule of what comes out of team revenues directly in twice-annual debt balloon payments for the next eight years.
June 2016 – December 2018: $21,950,000
June 2019 – December 2022: $22,000,000
The schedule continues like that through 2045.
It all means that the Mets are spending more on financing debt than they are on payroll.
So sure, it’s nice every time the Madoff trustee announces another victory, primarily because it helps people actually victimized by Bernie Madoff. But Mets ownership has far bigger numbers to worry about.
Which is also why you can safely dismiss the qualified comments by new MLB commissioner Rob Manfred on Wilpon finances. Notice that he insulates himself by claiming no knowledge of their ability to spend just before endorsing it.