Market players are expressing concerns over Sumitomo Bank's proposed new $205 million refinancing for the Detroit Tigers. "The Tigers are not doing that well, attendance is very low and at LIBOR plus 17/ 8%, the deal is woefully underpriced," said a banker following the loan. Calls to officials at Sumitomo and the Tigers were not returned. Other lenders on the existing $145 million credit are Société Générale, Provident Bank, First Chicago NDB, First of America Bank, Standard Federal Bank and Michigan National Bank. Calls were either not returned or officials declined to comment at the banks.
"Clearly attendance is dramatically below where it is meant to be," another banker said, the Tigers are averaging 20,000 fans per game this year, down from 30,000 last year. Last Wednesday the Tigers lost their second straight game to the New York Yankees, putting them 12 games below 500 and near last place in the American League's Central division.
In 1998, the Tigers secured the loan with the Sumitomo led-group to help finance the $300 million Comerica Park stadium, which holds 40,000.