Major League Baseball is working to cut how much debt its teams can carry, The Post has learned.
The move, aimed at avoiding a Mets-like cash squeeze or a Texas Rangers bankruptcy-type scenario, will be centered on widening the definition of team debt, sources close to the situation said.
For example, MLB wants teams to include holding company loans and not just what is directly on team’s books when determining total debt, a source with direct knowledge of the talks said.
The new debt rule would be part of MLB’s collective bargaining agreement talks with the players’ union — talks that have just begun.
Now, teams are supposed to adhere to a 60:40 ratio of assets to liabilities, adopted in 1975.
But the Rangers borrowed money through entities like Hicks Sports Group and Baseball Stadium LLC that were separate from the team and not counted as team debt — although the team was still on the hook for the loans.
A source who represents players said, “I think it [a rule change] is positive,” even if it could have a negative impact on salaries.
MLB’s CBA expires in December.