NEW YORK (
(JPM - Get Report)
is reportedly leading yet another effort to provide financing for the New York Mets as the overleveraged, Ponzi-schemed baseball team's owner seeks to shore up its balance sheet.
According to the
New York Post
, the Mets "desperately" need tens of millions of dollars to cover basic operating expenses and have sought financing assistance from JPMorgan. The bank, which is a central financier for Major League Baseball, corralled a team of lenders including
Bank of America
(BAC - Get Report)
(C - Get Report)
to lend $430 million to the Mets last year.
>>>Read More: New York Mets: 'Bailed Out' Again?
The Mets' finances have gone asunder due to the owner's involvement with Bernard Madoff's Ponzi scheme. The owner, Fred Wilpon, got out just in time before Madoff was caught, reaping a $48 million profit from his investments with the fraudster's investment firm. But he's been targeted by Irving Picard, the trustee for victims of Madoff's scheme, who's reportedly seeking to recoup as much as $1 billion from Wilpon.
As a result, Wilpon is
looking to sell a minority stake
in the Mets to deal with his Madoff-related woes. The
said the team needs some cash to tide it over until an investor is found.
Ironically, JPMorgan has also been ensnared in Picard's pursuit of Madoff-related profiteers. A lawsuit against JPMorgan by Picard was unveiled last month, seeking $6.4 billion and
charging the firm
with ignoring blatant signals and employee concerns about Madoff's phantom profits. The bank has denied any wrongdoing and pledged to defend itself against the allegations. Shortly after the case was announced, JPMorgan
requested a trial by jury
rather than judge.
As for the Mets deal, the
cited an anonymous source who said both the Mets and the MLB are "exerting strong pressure" on JPMorgan to find new funds for the financially strapped team.
The Mets franchise is now losing about $50 million a year, with outstanding debt of $505 million, according to the paper.
-- Written by Lauren Tara LaCapra in New York
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