October 23, 2013

Mets Are Worth More Than $2 Billion...Wait, What?

According to ESPN's Adam Rubin who cites a Bloomberg report, the New York Mets appraise for an estimated $2.050 billion dollars.  That's right...nine zeros after the two.  Rubin notes that the value factors in the team's stake in SNY, which accounts for more than half of the appraisal.  The report places the Mets as the fourth most valuable franchise in Major League Baseball, behind only the Yankees, Dodgers and Red Sox.

So let me get this straight.  A team mired in despair for the better part of a decade now, plus a network that fewer and fewer people watch every year, are worth $2 billion dollars.  Oh, the perks of playing in the big city!

All jokes aside this is probably really good news for the Mets, who will look to refinance their debt this winter.  If successful, its believe that the Mets will have more spending money, which could potentially lead to a higher payroll, better players and a better team (theoretically of course).  The Wilpons equity, or lack thereof, in both entities will certainly play a role in that process.  So, the higher the value the better their equity stance will be.

Basically, 90% of this is above my head.  I have an advanced degree, but its definitely not in finance.  So from where I'm sitting, this definitely isn't bad news.  With loan payments, interest payments and the like coming due, the Wilpons will need all the help they can get.

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