Nine MLB teams are "in violation of" the league's debt service rules, according to sources cited by Bill Shaikin of the L.A. TIMES. The sources indicated that information presented "in a confidential briefing at the owners' meetings last month" revealed that the Dodgers, Mets, Orioles, Cubs, Tigers, Marlins, Phillies, Rangers and Nationals are "out of compliance." The MLB rules "generally limit a team's debt to 10 times its annual earnings," although Commissioner Bud Selig "has wide latitude to enforce those rules." MLB Exec VP/Labor Relations & HR Rob Manfred would not confirm the report but said, "To take a snapshot of the number of non-compliant clubs at a point in time can be very misleading. With one or two exceptions, we see how teams are going to be compliant again in the short term, so we're not worried about them. We are not concerned about the overall economic condition of the industry." One team CEO called the issue "a hiccup." Dodgers Owner Frank McCourt contends that his team is "in compliance with debt service rules." A source said that McCourt "received a waiver from the commissioner's office last year permitting the Dodgers to hold debt more than 10 times annual earnings," and that waiver reportedly is "under dispute." Former MLB Commissioner Fay Vincent said that he "would consider the number of teams in violation of the sport's debt rules to be 'troublesome.'" But MLBPA Exec Dir Michael Weiner said that he "did not consider the issue a major concern" (L.A. TIMES, 6/3). The Cubs' appearance on the list likely is the "result of the financing stipulations between Tom Ricketts and his family and Tribune Co. to assume control of the team" in October '09 (CHICAGO TRIBUNE, 6/3).
