A recent report by S&P Global shows the New York Mets in trouble. Revenue at Citi Field is expected to remain sluggish for the foreseeable future. Unfortunately, on-field performance won’t affect the revenue numbers enough to make a difference. The issue is dire enough that smaller shareholders want to dump their shares. Only a handful of solutions are available to the Mets, and it remains to be seen how the team responds.
Few Positive Notes In S&P Global’s Report
First and foremost, S&P Global expects operating expenses to outpace most revenue channels. The report cites a 2% increase in operating expenses each year. Revenue streams may or may not generate enough money to combat this 2% increase. Remaining numbers and estimates in the report paint a grim picture for the New York Mets. Basically, things look bad for the team right now, and the situation could worsen in the coming years.
A Stadium With A Balance Due
Fred Wilpon and Saul Katz own the New York Mets today. Both men also own the company that operates Citi Field. For that reason, stadium revenues are used to pay for the original cost of building the stadium itself. A large portion of profit goes toward that endeavor, so sluggish revenue growth could hurt everyone involved. Perhaps smaller shareholders will pay the largest price, which is why some want to sell their stake in the team.
What’s Going To Solve This Problem For The Mets?
As previously mentioned, a boon for the team’s on-field performance probably won’t solve the issue. The team and stadium itself will need to take more drastic measures to increase revenue. New York has put up middling performance after middling performance in recent seasons, although 2018 is off to a great start. Still, team performance won’t impact revenue as much as operational changes and improvements.
A Rough Road Ahead For The Mets
As of right now, a response from the New York Mets ownership is not available. Fred Wilpon and Saul Katz will need to address the report sooner or later. S&P Global’s report is an estimation of future revenue, but its main points could become truth soon. In the end, revenue could remain stagnant in the long run. The next 15 years could even see a year or two with a revenue loss, which would be even more dire for the ownership.