Monday, March 19, 2012

Today's Settlement Doesn't Change Mets Financial Situation

In the eyes of Mets' brass, today's $162 million dollar settlement is probably considered a win. Why wouldn't it be? In the short term, they are on the hook for $162 million, as opposed to up to $382 million. However, this doesn't alter the financial situation the team finds itself in.

Yes, today's news is not what many Mets fans wanted to here, as it is unlikely that a $162 million dollar settlement will swiftly usher the Wilpons out of ownership, however the fact remains that the organization has nearly $1 billion dollars in debt looming. The team will be forced to restructure that debt in the not so distant future if it is not going to default.

Whether or not the banks will allow them to do so, will determine whether or not the Wilpons ultimately keep the team, not today's news. Forbes.com recently reported that the teams ability to sell tickets this season would have an impact on their ability to restructure this debt, so from where I'm standing the Wilpons are far from out of the woods...

The organization finally has closure on the $300 million dollar gorilla in the room, but other erroneous "investments" still require their attention. Can the team win enough games to fill the seats, or will the fan base turn it's back on the beleaguered owners? Those answers are still to come.

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