Thursday, May 26, 2011

For Richer or Poorer

Let us pretend for a moment that we were losing $70 Million a year because of a business venture we started. We'd all be pretty upset and... justifiably so. I mean, it isn't our fault that the team doesn't get more stadium revenue. Although... in the case of the Wilpons, it sorta IS their fault.

Take the case of Bobby Bonilla. The Mets could have paid off the rest of his contract, $5.9 Million dollars in 2000. Instead they differed the payment. They took a 10 year hiatus and then would pay Bonilla $1 Million dollars for 25 years. They did this because they were getting such large returns from Bernie Madoff that they stood to profit from having that $5.9 Million for the first 10 years... to cover that $25 Million dollar/25 year contract that kicked in this year AND THEN SOME. (Mind you, Bonilla is not the only case)

Now... let us believe in their innocence and that they simply thought that they were actually getting 8-12% returns from their magical friend of finance. If the Wilpons opened the books to the public, I wonder how much of the Met financial situation is caused by the ownership's investments and how much is the teams actual revenue.

Sandy Alderson announced yesterday that the Met payroll in 2012 would be between $100-140 Million dollars. That isn't bad... if it's closer to the 140 end of things, but in New York I shudder to think of the genuinely hateful response to the Wilpons crying pauper.

Should the Mets come close to spending in the 140 range you had better believe that the only name that the Mets should be spending that kind of money on is already on the team. (Do we really think Pujols will play RF?)

1 comment:

Sarah said...

Wow, great article, I really appreciate your thought process and having it explained properly, thank you!

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