Selig issued a statement saying the day-to-day operations of the team will be overseen by an MLB representative in the wake of a report team owner Frank McCourt is struggling to pay the bills.
"I have taken this action because of my deep concerns regarding the finances and operations of the Dodgers and to protect the best interests of the club, its great fans and all of Major League Baseball," Selig said.
Someone will be appointed to oversee the Dodgers "in the next several days," the statement indicated.
The Los Angeles Times reported this week McCourt received a $30 million loan from the Fox television network to cover the Dodgers' payroll. It marked the second time he has had to do so since the end of last season, the newspaper said.
McCourt, who bought controlling interest in the team from Fox in 2004, has been involved in a messy divorce during which his wife Jamie has challenged his ownership of the team.