If there’s any threat to the Dodgers’ ability to contend in 2017, it’s the size of their payroll. Bill Shaikin of the Los Angeles Times reports that the team spent approximately $1.181 billion in four years and needs to reduce their debt if they plan to comply with league rules. Shaikin adds that the debt is currently estimated to be in the “hundreds of millions.”
On average, the Dodgers have dumped an annual $295 million into player payroll dating back through 2013, when Guggenheim Baseball Management assumed control of the club. The expenditures were assumed to be a necessary part of the team’s efforts to stay competitive while remodeling their player development program. It’s this mentality that gives Dodgers’ ownership some comfort heading into the 2017 season. Via Shaikin:
Retaining Turner and Jansen won’t come cheap, as the two figure to be in the top tier of free agents this offseason.
MLB debt service rules stipulate that a team cannot exceed “12 times annual revenue, minus expenses,” and all teams under new ownership must adhere to the guidelines within a five-year period. Any organization found in violation of the debt service rule can be subject to one of 16 disciplinary options, the most extreme requiring a suspension of ownership and management.
No details on how the Dodgers will reduce their mountain of debt have been released, but neither club ownership nor MLB commissioner Rob Manfred appears overly concerned about the team’s ability to compete for another NL West title while cutting their expenses.
