For years the central fact of life of the New York Mets has been that their owners, the Wilpon family and Saul Katz, lost a ton of money after investing it with friend and business partner Bernard Madoff, perpetrator of the biggest Ponzi scheme in history. It has hampered their payroll and led to huge amounts of borrowing and restructuring that, before last year’s pennant run, seemed like it’d be a millstone on the Mets competitive prospects for years to come.
In addition to losing money, it was later determined that Katz and the Wilpons unfairly gained in some other respects and thus they ended up having their phony earnings clawed back via a settlement with the trustee managing the fallout of the Madoff scandal. The upshot: the Wilpons and Katz, in addition to their losses, were ordered to pay nearly $60 million dollars back, half payable this week, half payable next year. That’s a lot of money for anyone to fork over and this week’s payment loomed large.
Now, however, Adam Rubin of ESPN New York reports that the Wilpons and Katz will get some breathing room. Specifically, they have modified their agreement with the trustee and some of the owed money has been deferred. Instead of some $29 million payable this week, they will only have to pay $16 million. The remainder will be paid in four installments — from 2017 through 2020 — with an interest rate of 3.5 percent on the unpaid balance, Rubin says.
Now, there obviously was no promise that the $13 million saved this week be invested in the baseball team, but it’s probably a good thing overall for the Mets if their owners’ debt payments are reduced a bit.