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Leagues and Governing Bodies

MLB TEAMS MUST COMPLY WITH 60-40 RULE; ORIOLES HIT BY TAXES

          MLB Commissioner Bud Selig is "expected to inform" MLB     teams at this week's owners' meetings that he "will require     strict compliance with the 60-40 rule," in which teams must     have a ratio of no less than 60% equity to 40% debt,     according to Murray Chass of the N.Y. TIMES.  In recent     years, the Commissioner's Office has been "lax" in enforcing     the ratio, which Selig believes "could make an inroad into     the growing disparity in payrolls."  Selig is "expected" to     request financial information from teams and will then form     a compliance schedule if one is needed.  Chass: "Selig hopes     the 60-40 enforcement helps.  The luxury tax certainly     hasn't" (N.Y. TIMES, 1/10).  In DC, Mark Maske wrote that     with a '98 payroll of "just under" $79.5M, the Orioles will     pay "more than" $3.1M in luxury tax to MLB's central revenue     fund.  In the first two years of the tax system, the Orioles     have paid "nearly" $7.2M (WASHINGTON POST, 1/9).  Tax     figures are based on the average annual value of contracts      -- not per-year salaries -- and include the entire 40-man     roster, plus $5,576,415 per team in benefits paid to players     (BOSTON GLOBE, 1/9).  The following lists the top five MLB     teams in payroll and the luxury tax each must pay:                
TEAM '98 PAYROLL TAX
ORIOLES
$79,468,674
$3,138,621
RED SOX
$76,743,283
$2,184,734
YANKEES
$72,456,584
$684,390
BRAVES
$71,917,256
$495,625
DODGERS
$70,642,787
$49,593

AGENTS' ACCESS LIMITED: In Boston, Peter Gammons wrote that the Commissioner's Office sent a memo to teams that "prohibits clubs from issuing passes that give agents access to clubhouses or the field" (BOSTON GLOBE, 1/9).

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