The New York Mets’ National League pennant boosts the credit outlook for bonds issued to finance its Citi Field stadium, according to Moody’s Investors Service.
Moody’s said in a report Monday that the Mets’ first World Series appearance since 2000 is likely to boost home attendance in 2016, positively impacting Citi Field operating revenues to the benefit of bonds issued by New York Industrial Development Agency on behalf of Queens Ballpark Company.
Home attendance for all teams that reached baseball’s World Series in the last 14 seasons, with the exception of the 2012 San Francisco Giants who had won it all two years earlier, have seen increases the following year at an average of 10.6%, according to the Moody’s piece authored by analysts John Medina and Craig Cognetti.
The Mets on-field success in 2015 led to recording their highest attendance since Citi Field opened in 2009 with a nearly 20% increase from 2014.
Moody’s noted that only a portion of Mets home game ticket sales are earmarked for repayment of stadium bonds including 10,635 club and premium seats that accounted for 34.5% of 2014 pledged revenues. Ticket sales growth for the higher-end fans is expected to grow along with other related pledged revenues for the bonds such as parking, concessions and merchandise, according to Medina and Cognetti.
Moody’s, which rates the stadium bonds Ba1 with a stable outlook is forecasting the higher revenue growth to translate into better debt service coverage ratios. The Mets on-field success can also translate to more competition for future sponsorships that will likely lead to higher advertising revenues and benefit the franchise’s overall finances, according to Moody’s.
The Mets, who swept the Chicago Cubs in the National League Championship Series, begin the quest for their first World Series triumph since 1986 Tuesday night in Kansas City against the Royals.
