New York Mets cash in on Major League Baseball loan cheque
The New York Mets have availed 25-million-dollars from Major League Baseball as a contingent capital store. The Mets are currently hard at work in Port St. Lucie, Florida with a focus towards Spring Training. The club has recently taken steps to address
its other issues and deal with paying up funds in a possible court decision.
The club availed a loan of 25-million-dollars to secure itself from a possible ruling against the club in a suit brought forward by trustee Irving Picard. Picard has been delegated the task to redeem funds from Bernard Madoff’s Ponzi scheme. The trustee
believes some of the victims funds have gone to the Mets organisation and want that cash flow returned to the rightful investors of those funds.
Though there is no confirmation from any source on what the true valuation on the loan is, some reports claim the figure is close to 25-million-dollars. The Mets however have gone on to confirm the transaction vehemently.
“We said in October that we expected to have a short-term liquidity issue,” a team spokesman said in a statement. “To address this, we did receive a loan from Major League Baseball in November. Beyond that, we will not discuss the matter any further.”
Mets’ owners, Fred and Jeff Wilpon, have been looking for an alternative way to deal with the problem, but nothing productive or feasible has come out of the affair. The club had offered to put 25 per cent of its stake up for sale. However investors were
not eager enough to push in cash reserves for a minority decision making capacity in the club. It seems the lack of trust and confidence in the club, is keeping serious investors away right now. As the 2011 Major League Baseball season is right around the
corner, the Mets are beginning to feel the pressure of a cash crunch.
The situation has spewed controversy onto the Major League field in Port St. Lucie. The club players have offered their assistance, but the Wilpons believe a solution will come in soon.
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