Today’s RDM Rewind was written by Kingman 26 back on 2/5/2011. The title was “Opinion: It Clearly Is Time To Face Reality On The Wilpon Situation“.
It appears that the RMS Met Titanic is taking on water faster than the original.
It is becoming clearer and clearer that not only have the Wilpons been basically lying about everything since the WFAN appearance at the end of 2009, but much of the entire structure of the current Met organization was very possibly not only backed by Madoff’s non-existent profits—those profits may have even largely made Wilpon control of the team possible in the first place.
Information suggests that Fred Wilpon received the necessary loans to buy out Nelson Doubleday based on his Madoff-based wealth.
The Wilpons have long stated that their personal holdings, the Mets, and Madoff-related issues were unrelated.
This was the biggest lie of all.
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Major league baseball supplies a generous line of credit to all teams for various purposes, and now the Mets have used up theirs.
There are suggestions that not only are the Wilpons in debt well beyond their eyeballs, but the current situation points to their potential inability to continue to meet loan payments on their gargantuan debt. One phase of this debt is apparently nearly $50 million a year in Citi Field-related bonds. There is also another roughly $25 million a year in other Met-related debt. So this is about far more than just a Madoff settlement.
When these same eventualities hit Texas Ranger ownership, the team was put up for sale and changed hands.
We may very well be far into very similar waters with the Wilpon-owned Mets.
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Fred Wilpon right now is fighting for his entire empire.
The entire Met financial structure has been directly tethered to the Madoff empire of deceit.
Documents state that Madoff accounts were often used for withdrawals during the season to meet Met-related expenses. They also suggest strongly that multiple sources made clear to Fred Wilpon and associates that Madoff’s returns were impossible–that the math did not add up; one large financial house advised them that they would have nothing to do with something as questionable and risky as the Madoff empire.
The Met response to this has been that it does not prove anything. Perhaps true, but it is also very damning as well. The reality might in fact be that the Wilpons may have indeed known–or at least had an idea–that something was rotten in the kingdom of Madoff, but once they realized, Met finances were far too deeply tied in with Madoff to extricate themselves from his world.
If the Wilpons cannot make debt payments, have exhausted their MLB credit line, and face the likelihood of years of litigation ultimately requiring them to pay a nine-figure penalty while at the same time having to continue to pay down their existing debt, the pressure will soon be on them (if it is not already) to sell their entire stake in the team.
Major league baseball surely has been worried about the Met situation, as Selig’s overt pressure on the team to hire Alderson showed. Who knows what the topic of the recent Wilpon-Selig meeting was?
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As they have been lying about all aspects of the case, it is reasonable to speculate that the current attempt to sell 25% of the team is not only to build a war chest for a future settlement; it might also be needed to service current debt and simply meet operating expenses. Fans may be forgiving in some cases, but bankers surely never are.
Met financing has seemingly largely come from the backing of Madoff and then MLB; without those sources and with the recent economic situation clearly not favorable to Fred’s other businesses, this move to sell a share could indeed simply be a maneuver to keep the whole empire afloat a while longer.
Regardless, the days of pretending that Madoff did not affect the Mets and that the situation has little to do with on-field realities are now over. Alderson even recently commented on the team’s current payroll being significantly higher than management would like it to be. What should this tell is?
Unfortunately, that it is entirely possible that Met operating expenses are a major concern as well.
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It is clearly time to speculate on the future.
One intriguing name is that of Mark Cuban. The Mavericks have become one of sports’ most consistent winners under his leadership. He made himself hugely successful and wealthy at a very young age on the merit of his own intelligence and hard work.
Yes he can embarrass himself, but he also can be very honest and self-deprecating.
In a sport with no salary cap and with a team with the revenue potential of the Mets and SNY, Cuban might be one of the few people who could come in and buy the Mets as a single owner, and be expected to possibly rival the Yankees in spending.
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Such speculation may be premature, but what is not premature is taking a cold, hard look at the very slippery man at the helm of the Mets and the very questionable way that he has apparently built his immense fortune.
It is not an exaggeration to say that the entire Wilpon Met era may have been built on deceit. If it turns out that the money to buy out Doubleday, as well as Citi Field financing, were largely made possible due to Madoff pseudo-wealth, and if the end of the Madoff era and its resulting troubles have caused debt payment to be jeopardized, then it is very, very possible that the house of cards which has begun to crumble will indeed come tumbling down.
And if all of this does turn out to be true, Fred Wilpon will be a man for whom few tears are shed.
29 comments
darknova306
9/14/2012-12:13pm at 12:13 pm (UTC -4)
“It appears that the RMS Met Titanic is taking on water faster than the original.”
It still is. The team is still sinking into an increasingly black pit of awfulness. Omar The Iceberg was too big a hit to this ship, and we can only pray that there’s a set of cranes somewhere that are strong enough to resurface the ship from its deep watery coffin…
Stickguy
9/14/2012-12:34pm at 12:34 pm (UTC -4)
things can change fast though. Teams rise and fall all the time.
even the Mets. At the end of June, they were in (or about in) the WC spot. And many people were giddy that a couple of minor mid season pick-ups were going to keep them in the race all year.
2 months later, and the manic is gone, and suddenly they are the worst team ever, with no chance of becoming respectable for years and years.
darknova306
9/14/2012-12:52pm at 12:52 pm (UTC -4)
They weren’t very good to begin with and that success was due to several players playing way over their heads (not to mention that unsustainable 2 out RBI silliness). David Wright OPSing over 1.000 for two months sure made everyone forget that the rest of the offense was punchless. Well, now that he’s back to Kaptain K, we see the offense for what it really is. But yes, of course, everyone will be great next year! Wild Card, here we come!
TRS86
9/14/2012-1:09pm at 1:09 pm (UTC -4)
It’s all about sustainability. The O’s stink too as do the A’s but they have been able to keep those players playing over their head all year or replace them with someone else playing over his head.
Take a look back at our last playoff team and see how many of our hitters had either career years or resurgent seasons. I still say that season was what officially damned the current Mets. All long-range plans where thrown out the window when that team got so good so quickly. They threw, youth, speed and defense out the window and started playing for it all with ughs and the big name.
Take a look at this
2006, career average, 2005
Beltran .982, .856, .744
Reyes .841, .780, .687
Valentin .820, .769, .591
Loduca .783, .746, .714
Nady: .813, .758, .760
Those are some pretty hefty changes that many of those players were unable to sustain longterm.
gategem
9/14/2012-7:52pm at 7:52 pm (UTC -4)
“And many people were giddy that a couple of minor mid season pick-ups were going to keep them in the race all year.”
Yes, you and Ceetar.
Stick
9/14/2012-8:39pm at 8:39 pm (UTC -4)
no, the moron class that are screaming that Sandy is the devil because he “gave up” on the team by not adding them.
gategem
9/15/2012-5:40am at 5:40 am (UTC -4)
But I seem to remember that the both of you (well Ceetar thinks this every year for every Mets club) thought this club was for real and with a minor infusion of talent could contend for the WC.
srt
9/14/2012-7:01pm at 7:01 pm (UTC -4)
The Wilpons had nothing to worry about. Their buddy Selig came to their rescue.
Hazmet
9/15/2012-12:11pm at 12:11 pm (UTC -4)
Firstly, the Mets and the standings: with a lowly .500 record keeping teams in the WC race into mid-September and the Mets first half success as a forerunner it was not entirely delusional to think they could still be in a race now. Either with or without a mid-season pickup. But who expected them to go 4-20 at home over recent months. So, it really wouldn’t have taken much to keep them in the race and thereby I myself cannot berate other Mets fans for thinking there was a chance to still be in the playoff discussion in the second half. Looking at it differently, as stated in last nights broadcast, roughly 2 weeks ago the Mets, Phillies, and Brewers all had about the same record but the Phillies and Brewers went on a run and entered back into the WC discussion and the Mets continued to tank. Even at that late date if they showed half a pulse they could have added a little juice to September.
As for Wilpon, he’s not going anywhere. As I’ve said before with him entering into deals to develop neighborhoods around Citi Field with NYC why would I think otherwise. And if we are lucky enough to see him either have to sell, or look to relinquish controlling interest, think more James Dolan and Cablevision before Cuban as much as we’d like it to be Cuban. Wilpon’s hob-knobbed with the Dolans and they’re from the same area so it’s more a natural fit to Fred the Cryptkeeper. And you know Selig doesn’t want Cuban to get ownership and he’s not going anywhere.
There’s little to be optimistic around the ownership situation. Actually I just accidently typed “shituation” which is more appropriate.
gategem
9/15/2012-3:23pm at 3:23 pm (UTC -4)
Given that Wilpon and Selig are not going anywhere and given that ball clubs are a direct reflection of their ownership (in spite of delusional fans thinking otherwise) it may be time for us fans to think about moving on. I know that at my age I would like to root for a team that has a chance of playing meaningful baseball in September and October just once before I die. With the internet and boob tube carrying every professional team’s game it is not difficult to follow another team. And if you select another national league team you can attend games at Citi to watch them beat-up on Wilpon’s Mets.
Stickguy
9/15/2012-3:44pm at 3:44 pm (UTC -4)
that explains all the ex-wives…
gategem
9/15/2012-7:05pm at 7:05 pm (UTC -4)
Do you equate a wife with the triviality of rooting for a ballclub? I certainly hope not.
Stick
9/15/2012-9:29pm at 9:29 pm (UTC -4)
just yanking your chain. though I actually know more people that have stuck with a team for decades, but have been through a few wives!
gategem
9/16/2012-3:42am at 3:42 am (UTC -4)
Well there is nothing wrong with diversity. I had a friend that had Jets season tickets and his wife threatened to leave him if he attended the Jets game that day. He did and so did she.
srt
9/15/2012-11:02pm at 11:02 pm (UTC -4)
Nah…I’ve been a NY Met fan since ’68. I’m not going anywhere, no matter how awful the season.
gategem
9/16/2012-3:37am at 3:37 am (UTC -4)
But this is more than one lost season we’re talking about. This is a franchise whose owners have firmly set the underpinnings in quicksand. You may very well witness a bottom dwelling ballclub for the next ten years. I can accept incompetency but this ownership is deceitful and disingenuous. Could you watch nothing but dreadful movies for the next ten years? I could not and baseball and the motion picture industry both fall under the category of entertainment.
For the first time in all the years that I’ve followed the Mets I’m considering jumping ship and if I feel this way there must be countless others that are not as rabid a fan of the ballclub as I am.
Hazmet
9/16/2012-10:10am at 10:10 am (UTC -4)
Funny you should mention this as for other reasons earlier this season I’ve tried a demo run through rooting for the Pirates. Why the Pirates? Well they’re in the NL, without looking if they aren’t one of the original MLB franchises they’re darn close, Ralph Kiner – say no more, and my dad used to tell me tales of seeing the Pirates at Crosby field when he used to be sent around the country by GE to install fledgling communication towers right after WWII. I realized this all could be just as futile as rooting for the Mets as I just have a thing for the underdog. But there’s a difference between rooting for an underdog with hope and then there’s our situation with this ownership and having nothing likeable about them or any reason to believe they’re on the verge of being players at any championship level of competitivness. So, yes, we’re in the same place GG and I so appreciate you getting where this one very conflicted Haz is at.
srt
9/16/2012-11:10am at 11:10 am (UTC -4)
If I could stick with the team through the Midnight Massacre, and those god awful teams of the late 70s and early 80s, I’ll be sticking now.
I don’t expect much to change over night. And I don’t really know how the next 10 years are gonna play out.
I’m not loyal to these owners – as I’ve been very vocal in wishing they had not been able to hold onto the team.
I’m loyal to the team. Players come and players go but it’s still the Mets. Not sure I can explain it all that well but it’s a deeply engrained fandom that I can’t – or won’t turn away from. I know the entire history of this team, I can recall players, games, seasons….I went to games with my family as a kid and those memories are as much a part of my fandom as the team I’m following today.
I can’t imagine starting over with another team that I barely know the history and having that same type of connection.
I don’t like what’s been going on these past few years as I imagine most Met fans don’t either. One thing you can count on in baseball though…nothing ever stays the same.
I’ll be looking to see how this all shakes out in the next couple of years.
gategem
9/16/2012-11:34am at 11:34 am (UTC -4)
My position is unique due to my age. When the midnight massacre occurred I was quite a bit younger and could look forward to the future of the ballclub with hope. I don’t have that luxury now so I realize that the Wilpons and Selig may have taken away my enjoyment of baseball for the remainder of my life. It’s their right to do so but it’s the right of fans to move on. Now a major difference between the two of us, besides age, is that my youth was spent rooting for the Brooklyn Dodgers and they left town. It changed my perspective of baseball from a sport to a business at a young age.
Stick
9/16/2012-2:45pm at 2:45 pm (UTC -4)
If I was going to switch, and of course everyone is free to do so if they choose to, it would have to be for my local team. hard enough following/rooting for the mets when I am out of the area, but no way I am going to pick a new team to be in the same situation!
so, won’t happen while I live in Philly. I will give up watching BB entirely before I root for the Phillies!
now, if I get my wish in a few years and move to a new area, I can revisit if there is A) a team and B) mets is the same mess.
Pacific NorthTex
9/15/2012-6:34pm at 6:34 pm (UTC -4)
This place has become the desert. Though the dessert would be more yummy.
gategem
9/15/2012-7:08pm at 7:08 pm (UTC -4)
All the people that frequented TRDM should leave forwarding addresses so we can stop by the new blog where you comment and say “Hello.”
NJstuckinTX
9/15/2012-8:13pm at 8:13 pm (UTC -4)
1313 mockingbird lane.
gategem
9/15/2012-8:30pm at 8:30 pm (UTC -4)
For some reason you always reminded me of Eddie Munster.
Pacific NorthTex
9/15/2012-9:29pm at 9:29 pm (UTC -4)
As long as you didn’t think of me as spike, I’m ok with that.
Mr North Jersey
9/15/2012-9:44pm at 9:44 pm (UTC -4)
I don’t know about that. Little Lord Fauntleroy turned werewolf or fire breathing monster?
Tough call.
Stick
9/15/2012-9:30pm at 9:30 pm (UTC -4)
still here too. just not much to comment on most of the time.
darknova306
9/16/2012-12:35am at 12:35 am (UTC -4)
Eh, I’m still here. Content on the site’s been a bit sparse and the Mess have playing awful baseball, so not much to really talk about.
Someone could always stir up trouble by trolling Stick. Just mention Lucas Duda’s “guaranteed triple crown” this year.
Trs86
9/16/2012-12:42am at 12:42 am (UTC -4)
We are all still here but what’s left to say fr now? I am sure opinions will pick back up during the offseason .