With the baseball industry at a standstill over the past few months because of the coronavirus pandemic, Major League Baseball owners have been claiming billions of dollars in losses due to a lost or shortened 2020 season.
In a presentation to the players' union last month, MLB indicated that a majority of teams were likely to be in violation of the debt service rules in the collective bargaining agreement and team debt was set to increase by 40%. We've seen teams make cuts to minor leaguers to avoid paying small stipends while furloughs and pay cuts to team employees across the board have been commonplace.
MLB teams are having trouble. But what happens if it gets worse? At what point will MLB step in and do something? The organization's history is replete with examples of owners getting in over their heads, and MLB traditionally does what it can to protect its franchises and its business.
