Mets Ballpark Debt Outlook Hurt By Lawsuit: Moody's

NEW YORK (Reuters) - The outlook for the New York Mets stadium debt has turned negative, Moody's Investors Service said on Thursday, after the trustee recovering money for victims of Bernard Madoff sued the baseball team's owners to recover as much as $1 billion.

The legal fight could hurt the baseball team's performance, which could cause fewer people to attend its games and cut the amount of money the team has to repay the stadium debt, Moody's said.

"While the ultimate outcome of the litigation and the timeframe for final resolution are unknown at the present time, the negative outlook acknowledges the close connection between the health and performance of the Mets baseball team and the long term credit quality of the stadium project," Moody's said.

Team owners, including Chairman Fred Wilpon, have said they will try to sell a minority stake in the team after being accused by the court-appointed trustee of turning a blind eye to Madoff's fraud.

The stadium debt for the Queens ballpark, called Citi Field, was issued by the New York City Industrial Development Authority, which is not involved in the Madoff litigation.

A Moody's spokesman was not immediately available to say how much debt was affected by the revised outlook. The bonds carry a Ba1 rating, Moody's highest junk grade.

The Mets have had two straight losing seasons, although the team has one of the highest payrolls in Major League Baseball. Attendance fell 19 percent last year at Citi Field, in the ballpark's second year of existence.

(Reporting by Joan Gralla; Additional reporting by Jonathan Stempel; Editing by Leslie Adler)

Copyright 2010 Thomson Reuters. Click for Restrictions.

Comments

[shortywarn]

10:29 PM on 02/10/2011

are we supposed to feel bad???

remember when they paid 30 million for naming rights,,,, after we just bailed that bank out

the subsidies and tax brakes these stadiuns get,,,, is a hidden tax on residents,,,, and there huge,, bush did a number on texas residents with the rangers deal

also,,,, the nj nets using eminent domain to steal people's homes for a new stadium.

oh, lets all cry for rich players and rich owners,,,,, boo hoo

[mike dougles]

09:51 AM on 02/13/2011

The Jets new stadium was built in a parking lot next to their old stadium, I dont think they need eminent domain to do that, plus its also the Giants stadiun too not just the Jets.

[shortywarn]

12:58 AM on 02/19/2011

it's new jersey nets,,, not new york jets!!!

jay-z owns a piece and wants to build the stadium in brooklyn,,,, and throw people out of homes using eminent domain to get the land,,,,people are upset,,,,, guess jay-z isn't from the hood,,, but uptown wall st now.

i read a book about subsidies,,, and sports teams are the worst,,,, walmart isn't far behind

my local walmart got a 300,000 subsidy,,,,, would a local small biz get that???

and for ever one job walmart has 3 local jobs are lost,,,, and money is sent to corporate not kept locally

so it's lose, lose, and lose,,,,,, unless you like cheap chinese goods,,, and the fake organic milk