Dodgers News: MLB Clarifies Stance On Debt Rule
Jim Brown/USA TODAY Sports

While the Los Angeles Dodgers have placed an emphasis on replenishing their farm system and supplementing the Major League roster with home-grown talent, the organization hasn’t completely shied away from flexing their financial muscles.

Under president of baseball operations Andrew Friedman the Dodgers have not only paid salaries to aid the completion of trades, but also cut ties with players who had significant salary remaining on their respective contracts.

This offseason the Dodgers are expected to be active on the open market, particularly with free agents Rich Hill, Kenley Jansen and Justin Turner.

But some of that expectation cooled this week amid a report that MLB issued the Dodgers a mandate to lower their debt now that Guggenheim is entering their fifth season of ownership.

That was interpreted as Los Angeles essentially being handcuffed in free agency. Amid the confusion, MLB issued a statement in effort to clarify the matter, via Ken Rosenthal of FOX Sports:

“The Commissioner’s Office works with all clubs to monitor compliance with the Debt Service Rule. Non-compliant clubs are asked to submit a plan demonstrating a path to compliance. Clubs are evaluated on an ongoing basis relative to that plan.

“The rule is intended to ensure the financial health of clubs relative to their ability to service their indebtedness, not to influence decisions on the player market. There are various ways to achieve compliance and there is no mandate to cut payroll.”

Dodgers president and CEO Stan Kasten downplayed any concern over the club’s debt and said MLB did not deliver any sort of instruction to become compliant with the set guidelines.

After 15 years the Dodgers unseated the New York Yankees in 2014 for highest payroll in the Majors. The Dodgers have held the distinguished title every season since.

Although there’s been an effort to make clear of the Dodgers’ situation, free agents and other teams reportedly have some concern over their financial well being.