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

[olehippi]

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

Predictable response.......check

[carolinaoriole]

Much ado about nothing.I think that none of the teams on this list care that they are on the list.

[TiredofLosing20]

Not only do they have to disclose their books to MLB, they have to disclose them to the MLBPA as part of the CBA.

I assumed they had to disclose to MLB but didn't know for sure. I really didn't know they had to disclose to the union.

[The Epic]

The main people involved really don't seem to care too much; why should we?

[TiredofLosing20]

Predictable response.......check

The notion of them cooking the books is ridiculous.

[Mizerooskie]

I shudder to say this, but the Trea has (somewhat of) a point. Every professional sports franchise fiddles with their books to make it look like they make less than they do, for revenue sharing and tax purposes.

It's not some Angelos-only conspiracy, however.

This list likely tells us nothing useful about the Orioles' financial situation.

[BaltimoreTerp]

Much ado about nothing.I think that none of the teams on this list care that they are on the list.

You don't think ANY of them care? Like the one that was just forced to give away a third of their team for possibly nothing? Or the one that is likely going to be taken over by MLB in another two-three weeks?

The main people involved really don't seem to care too much; why should we?

Because it COULD have an effect on the ability of the team to improve in the future.

[Stotle]

Because it COULD have an effect on the ability of the team to improve in the future.

I just don't think this article is near enough evidence to allow us to jump to that conclusion. The numbers listed have little to nothing to do with the ultimate deciions of lenders to offer credit lines up, as they take much more into account when running their risk analysis. Further, we have no idea if the surpassed ration triggers reported are often surpassed, or for what duration of times these teams have been sitting on the "bad" side of the 10:1 threshold.

[BaltimoreTerp]

I just don't think this article is near enough evidence to allow us to jump to that conclusion. The numbers listed have little to nothing to do with the ultimate deciions of lenders to offer credit lines up, as they take much more into account when running their risk analysis. Further, we have no idea if the surpassed ration triggers reported are often surpassed, or for what duration of times these teams have been sitting on the "bad" side of the 10:1 threshold.

I wasn't talking about conclusions, that's why I emphasized "could". Its a reason we should care, and pay attention to things like this.

[Stotle]

I wasn't talking about conclusions, that's why I emphasized "could". Its a reason we should care, and pay attention to things like this.

I understand, but the info we'd actually need in order to reach any conclusion will probably never be made public. I stand by my guess that this is just a PR leak from ownership to make fans think baseball is in worse shape than it actually is.

[BaltimoreTerp]

I understand, but the info we'd actually need in order to reach any conclusion will probably never be made public. I stand by my guess that this is just a PR leak from ownership to make fans think baseball is in worse shape than it actually is.

I don't know if I would go that for sure. There is a lot of media coverage of the ongoing troubles with the Dodgers and Mets with this being a major part of each team's story. It could be that the reporter (especially since Shaikin has been the main reporter covering the issues with the Dodgers) decided to take a look for other teams with the same issue.

I could see it being a leak like you say, but there are other explanations.

[Stotle]

I don't know if I would go that for sure. There is a lot of media coverage of the ongoing troubles with the Dodgers and Mets with this being a major part of each team's story. It could be that the reporter (especially since Shaikin has been the main reporter covering the issues with the Dodgers) decided to take a look for other teams with the same issue.

I could see it being a leak like you say, but there are other explanations.

Absolutely. I do think it is convenient that the nine teams leaked include clubs from all different slices of the revenue pie (big/small market, frugal/frivolous ownership spenders, etc.). Essentially, any fan could look at this list and say, "If team X is having issues, it's definitely possible my favorite team isn't far behind."

[BaltimoreTerp]

Absolutely. I do think it is convenient that the nine teams leaked include clubs from all different slices of the revenue pie (big/small market, frugal/frivolous ownership spenders, etc.). Essentially, any fan could look at this list and say, "If team X is having issues, it's definitely possible my favorite team isn't far behind."

Very true.

[Miller192]

It's a big deal for the Orioles' investors and potential investors.

[ScottieBaseball]

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

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.

You don't think they are required to disclose their financials to MLB? I don't know the answer to that. I can tell you with complete certainty that they are required to fully disclose their (most likely audited) financials to their lenders.

I don't doubt they're required to disclose to MLB. MLB has no obligation to make that information public.

And I'm sure they adhere to GAAP, but there are still tactics within GAAP that enable the reporting of such financial information to reflect what the public would perceive as closer to the black/red...whichever benefits one's agenda.

Again, I'm not implying that the Orioles are engaging in this practice, but it's a plausible theory.