Major League Baseball is the latest sport to confront the harsh reality of the global credit crisis, with the league’s $1.5 billion credit facility set to expire Dec. 8. The NFL last month decided to let its loan pool terminate, automatically converting it into debt with accelerated principal payments. But unlike the NFL, whose first payment is not due until 2011, if MLB does not refinance, it will have to begin making some principal payments as early as next month, finance and baseball sources said . . .I'm a finance moron, but my guess is that 2 to 3 percent is worth at least a couple of relief pitchers.
. . . MLB briefed its owners on the situation last week and updated the teams’ chief financial officers a week earlier. Bank of America, MLB’s lead lender, has been trying to refinance the credit facility into a seven-year loan that would push the first principal payment off to 2014, the sources said. That loan would carry rates 2 percent to 3 percent higher than what teams are charged through the current credit facility, banking sources said.
(thanks to ShysterBall's Minister of Finance, Pete Toms, for the heads up)