Sep 06 2012 07:48 PM
Re: Assuming they really are still broke. . .
Mets loss falls to $23M, but no help to payroll: source
By JOSH KOSMAN
Last Updated: 1:18 PM, September 6, 2012
Posted: 12:04 AM, September 6, 2012
| The Mets are expected to cut their 2012 season loss by two-thirds from last year, to roughly $23 million — in line with expectations but not enough to support anything but a modest uptick in payroll in 2013, The Post has learned. The loss could continue to shrink next year, according to one source close to the situation, who estimated the red ink may drop to about $15 million. “They are pretty near their [pre-season] expectations,” the source said. But even with the losses at that level, cash-strapped owners Fred Wilpon and Saul Katz appear to have just over $21 million in free cash — from their profitable SportsNet New York cable operation — to sink into the club, the source said. That would suggest, unless SNY profits soar, that the expected $8 million decline in 2013’s projected loss would give the Mets just that much more money to add to payroll. The Mets cut their 2012 payroll by $50 million from 2011, to about $100 million. Fans, who are suffering through the team’s sixth straight season of missing the playoffs — and, perhaps, the Mets’ fourth straight season with a losing record — had hoped an increased payroll would help keep All-Star David Wright, plus add some bona fide stars. The money might not be there. “There will be room to make gradual increases in payroll, but nothing dramatic,” the source said. To be sure, the days of the Mets’ financial emergency are over. The team has repaid some of its loans and is on firmer financial footing, the source said. In large part, that’s due to the profitable SNY operation, which had profits of nearly $100 million in 2011. Wilpon and his partners own 65 percent of SNY — meaning their share is about $65 million. Wilpon’s Queens Baseball Corp., meanwhile, owes $43.5 million annually for Citi Field — which comes out of SNY profits. That leaves $21.5 million, slightly less than this year’s expected losses. Next year, if losses are reduced to about $15 million, that would leave a $6.5 million surplus. However, attendance is down 3.6 percent from last year, has dropped every year the team has been at Citi Field and could drop again in 2013. Mets GM Sandy Alderson told The Post last month that he expects David Wright and R.A. Dickey to sign long-term contracts with the team this winter. “This year we’re at $100 million, but I’m hopeful we’ll be in the same range if not somewhat higher,” Alderson said, adding he hasn’t discussed the subject with principal owner Wilpon. The Mets declined comment on its finances. The team last March sold minority stakes for $240 million — which went, in part, to repay $65 million in loans, $110 million to help refinance bank debt and $43.5 million to the city for stadium debt. |
http://www.nypost.com/p/news/business/r ... 4leJwx8MAO
