O's one of nine teams in violation of MLB debt service rules

[Going Underground]

Are the O's in great financial shape? Is MASN.the cash cow we all thought it would be?

Nine of the 30 teams are in violation of the MLB debt service rules, according to information presented in a confidential briefing at the owners' meetings last month and confirmed to The Times by three people familiar with the presentation.

In addition to the Dodgers and Mets, the teams out of compliance are the Baltimore Orioles, Chicago Cubs, Detroit Tigers, Florida Marlins, Philadelphia Phillies, Texas Rangers and Washington Nationals, according to the people, none of whom were authorized to disclose the information.

http://www.latimes.com/sports/baseball/mlb/dodgers/la-sp-0603-baseball-debt-20110603,0,2039464.story?track=rss

[ChaosLex]

Hmm... so what does this mean exactly?

[usmcterp]

So the O's borrowed money to pay old debt? I am not sure this really means the O's are in financial trouble. With interest rates down, they could have simply refinanced some of their old debt to save $ in the long run. This is just speculation on my part, but I don't think it indicates their financial stability.

[Frobby]

Hmm... so what does this mean exactly?

So the O's borrowed money to pay old debt? I am not sure this really means the O's are in financial trouble. With interest rates down, they could have simply refinanced some of their old debt to save $ in the long run. This is just speculation on my part, but I don't think it indicates their financial stability.

Well, it means that the team has borrowed more than ten times its annual earnings, in order to finance the operations of the club. It doesn't necessarily mean they are in financial trouble, but it certainly suggests that the Orioles are not -- as some would like to believe -- some cash cow that could be spending a lot more money than it currently does.

[Going Underground]

Well, it means that the team has borrowed more than ten times its annual earnings, in order to finance the operations of the club. It doesn't necessarily mean they are in financial trouble, but it certainly suggests that the Orioles are not -- as some would like to believe -- some cash cow that could be spending a lot more money than it currently does.

The Phillies being on the list is interesting. They sell out every game but have a really high payroll. Also their TV revenue is not like the Yankees-Yes network or Red Sox-NESN. This also does not mean the team is not profitable but the owner might have ran into some financial troubles. The economy is still not great and if the owner was in real estate or the stock market could have lost alot of money. They might have money but not as much to cover the amount baseball wants to cover the team.

[JTrea81]

Well, it means that the team has borrowed more than ten times its annual earnings, in order to finance the operations of the club. It doesn't necessarily mean they are in financial trouble, but it certainly suggests that the Orioles are not -- as some would like to believe -- some cash cow that could be spending a lot more money than it currently does.

Or Peter Angelos is fixing the books so it appears that way...

[JTrea81]

I picture you with a tin-foil hat, storing cans in your shelter.

Lots of businesses fix their books to make it appear they are taking a loss. I'm sure the Orioles aren't any different.

The Yankees take much more profit in than you see in those Forbes reports.

[bobmc]

Or Peter Angelos is fixing the books so it appears that way...

Dang! I was just about to post this in anticipation of your post....

[srock]

violation of MLB debt service rules

Is this sort of like being in violation of the draft slotting bonuses assigned by MLB?

There are any number of reasons the O's may have run up some debt and they aren't necessary bad for the team.

[ChrisAF79]

Or Peter Angelos is fixing the books so it appears that way...

Trea at his compound posting away on the HO...

[Dipper9]

Are the O's in great financial shape? Is MASN.the cash cow we all thought it would be?

Nine of the 30 teams are in violation of the MLB debt service rules, according to information presented in a confidential briefing at the owners' meetings last month and confirmed to The Times by three people familiar with the presentation.

In addition to the Dodgers and Mets, the teams out of compliance are the Baltimore Orioles, Chicago Cubs, Detroit Tigers, Florida Marlins, Philadelphia Phillies, Texas Rangers and Washington Nationals, according to the people, none of whom were authorized to disclose the information.

http://www.latimes.com/sports/baseball/mlb/dodgers/la-sp-0603-baseball-debt-20110603,0,2039464.story?track=rss

Well no wonder they charge $7.50 for a Natty Boh!

BTW...I just bought a case of it for $13 at Beltway Fine Liquors and Wines.

[JERSEYORIOLE]

Or Peter Angelos is fixing the books so it appears that way...

Well while we are at it, who shot JFK?

[Phantom]

This article does not match up with what I want to be true, thus it must be inaccurate.

[Moose Milligan]

I can only guess that a certain poster is spouting a conspiracy theory or two.

[The Goob]

It likely just means that MASN is a seperate legal entity and not included in this debt service calculation. I am pretty sure given the Nationals partial ownerhsip that is would have been setup seperately.