Mar 25, 2011, 2:37 PM EDT
Just a day after Forbes released a story about Major League Baseball teams in debt trouble, the New York Post reports that baseball is changing its debt rules:
Major League Baseball is working to cut how much debt its teams can carry, The Post has learned.
The move, aimed at avoiding a Mets-like cash squeeze or a Texas Rangers bankruptcy-type scenario, will be centered on widening the definition of team debt, sources close to the situation said.
For example, MLB wants teams to include holding company loans and not just what is directly on team’s books when determining total debt, a source with direct knowledge of the talks said.
This is apparently part of collective bargaining. Makes some sense given that a team’s ability to take on debt has a direct relationship to how much it can spend on stuff, salaries included. I’m sure it’s a tough balance for the union given that they want teams to be both free-spending and solvent.
Whatever happens, there isn’t much murkier in the world than the finances of professional sports teams, so it’s hard to see all of the different directions in which this kind of thing can break. But this seems like a good idea. One Tom Hicks situation is enough. And by the time this is all said and done, we may have had three of them.
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- Title or no title, Dave Dombrowski’s tenure in Detroit was a success 34
- Dave Dombrowski out as Tigers General Manager, team president; Al Avila takes over 59
- Blue Jays’ Aaron Sanchez, John Gibbons disciplined in the wake of Sunday’s plunkings 72
- Believe the hype: Carlos Correa is already a superstar 34
- Gregg Zaun to Yordano Ventura: “stop writing checks with your mouth that your skinny ass can’t cash” 109
- And That Happened: Monday’s scores and highlights 55
- The benches cleared in Friday’s Giants-Rangers game (208)
- Blue Jays acquire David Price from the Tigers (113)
- Gregg Zaun to Yordano Ventura: “stop writing checks with your mouth that your skinny ass can’t cash” (109)
- Rangers land ace left-hander Cole Hamels from Phillies (106)
- And That Happened: Sunday’s scores and highlights (88)