SNY sale could become reality as Wilpons try to raise capital
In a recent report that has come through, there is a word that the Wilpons, who own the New York Mets, could sell the Sports-Net New York cable network in a bid to raise capital for the club. Fred Wilpon, current owner of the franchise has been dealing with
financial woes for a long time now. Being sued by a trustee to redeem funds from victims of Bernard Madoff’s Ponzi scheme, doesn’t help the Mets dictate the investors’ interest in the market.
The club has been under charge for utilizing those funds and their main issue has been relevant to dealing with the unexpected leakage of capital out of the organization. The Wilpons are under serious trouble, and it makes sense to consider a report that
would call for the sale of the SNY cable network. The Mets are not willing to comment on the report that has come through, but they have acknowledged the fact that there is a serious demand for funds.
The club has already offered to sell 20%-25% of the Mets to any interested group, but there hasn’t been much positive activity in the market to suggest a demand for the shares. The market isn’t taking a risk, following the financial crisis that has thwarted
the American Business sector since 2008, following the subprime mortgage crisis. The stake put on sale didn’t include SNY or Citi Field, but now there are serious considerations for the assets to be clogged into the package.
SNY covers three quarters of the Mets’ games and is owned by the club with the percentage of 65%. Time Warner cable and Comcast own remaining 35% of the company.
The Mets have been talking the Major League Baseball Commissioner, Bud Selig, over the recent issue, and it is believed that Fred Wilpon will not concede decision making control to any party. If a sale of 25% ownership does happen, it will be expected to
be carried out in the middle of June.
The club will be hoping for a better performance on the field, as positive on-field performances could draw in more investors and funds for the coming seasons. With the balance of good faith in the management and the players, the side has the potential to
succeed but will they be able to do so, under the current conditions of the club? Only time can tell.
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