Tuesday, March 23, 2004
Baseball's Future in Hock
Hal Bodley of USA Today reports that the 30 major league clubs have deferred salary obligations to their players totaling $2.8 billion for the 2005-10 seasons. These obligations range from the Expos, who have only $307,500 committed beyond the 2004 season, to the Yankees, who owe $566.7 million. Here's a handy chart summarizing each club's deferred obligations, by year.
The article includes a quote from Commissioner Selig. Bud expresses concern about the level of club debt, but assures fans that "teams have a much more sensitive recognition of their debt and what they have to do about it." He should know about debt: even after $40 million in new equity contributions, his own Brewers are about $110 million in debt.
Note also in this context that teams can commit as much as they want to their players without running afoul of MLB's debt rules. The definition of "Total Club Debt" in the CBA specifically excludes "any compensation paid to Major League Players, including deferred compensation or other commitment under a Uniform Player's Contract."
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Hal Bodley of USA Today reports that the 30 major league clubs have deferred salary obligations to their players totaling $2.8 billion for the 2005-10 seasons. These obligations range from the Expos, who have only $307,500 committed beyond the 2004 season, to the Yankees, who owe $566.7 million. Here's a handy chart summarizing each club's deferred obligations, by year.
The article includes a quote from Commissioner Selig. Bud expresses concern about the level of club debt, but assures fans that "teams have a much more sensitive recognition of their debt and what they have to do about it." He should know about debt: even after $40 million in new equity contributions, his own Brewers are about $110 million in debt.
Note also in this context that teams can commit as much as they want to their players without running afoul of MLB's debt rules. The definition of "Total Club Debt" in the CBA specifically excludes "any compensation paid to Major League Players, including deferred compensation or other commitment under a Uniform Player's Contract."
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