News broke Saturday that the Dodgers will be forced to exercise a healthy dose of fiscal restraint in coming seasons in order to comply with Major League Baseball’s debt servicing rule. The rule prohibits teams from operating with debt greater than 12 times their annual revenue in order to ensure that teams are able to meet their financial obligations.
With current ownership, the Guggenheim Group, inheriting some $412 million dollars in debt from the previous Frank McCourt ownership and the franchise failing to run a profit in the last 4 seasons the Dodgers are now at risk of violating this clause.