Mets Turn To Bank Of America For Help

According to the New York Times, the Mets have received a $40 million loan from Bank of America.

The loan marks the second time in a year that the Mets have received an infusion of cash. A year ago, the team’s owners, Fred Wilpon and Saul Katz, received a $25 million loan from Major League Baseball, but they have not been able to repay it. Meanwhile, Sandy Alderson, the club’s general manager, said last week that the organization had lost $70 million in 2011 alone.

The Mets have been attempting to raise $200 million by bringing in potential investors to pay back other bank loans and the $25 million MLB loan.

People familiar with the team’s situation have said the owners had firm commitments from at least seven investors interested in buying a small share of the team for $20 million apiece. Still, until all are sold, none of the investors have had to turn over cash.

Adam Ruben of ESPN New York tweeted that MLB approved the Bank of America loan.

I may be wrong here, but isn't this how the banks got into trouble; handing out loans that can't be re-paid?