The Detroit Tigers are one of nine MLB teams that are in violation of baseball's debt rules, according to a report by the Los Angeles Times. Here's the explanation of the situation by ESPN:â†µ
The violations in question concern debt-service rules intended to limit a club's debt to 10 times its annual revenue, according to the Times. Other teams named in the owners' briefing were the Baltimore Orioles, Detroit Tigers, Florida Marlins and Washington Nationals.â†µ
The other teams named were the Philadelphia Phillies, Chicago Cubs and Texas Rangers. What penalties the Tigers could face is unclear, though the article mentions a few:â†µ
Among the possibilities are ordering a team to raise equity, requiring expenditures to be approved by MLB in advance and suspending a team's owner.â†µ
The Tigers currently have one of the highest payrolls in baseball, hovering around $105 million for this season. That's actually down from last year, when they spent $122 million. Couple that with underachieving teams that don't make the playoffs and a downtrodden Detroit economy and you have a recipe for debt.