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Luxury Tax Newsbeat

Sunday, December 20, 2015

Dodgers hit with record $43.6 million luxury tax bill

Not that the Dodgers seem to mind. According to calculations by MLB, Los Angeles had a record payroll of $297.6 million this year — benefts included — which far exceeds the $189 million threshold. Any way you slice it, that’s a lot of money to have tied up in a baseball team, and a good chunk of that turned out to be dead money. As we noted after the Dodgers activity at the trade deadline, the team owed $87.5 million just to players who were no longer on the team. Another good chunk was tied up in players who were injured.

It’s not a new thing though under Friedman and Zaidi. The Dodgers exceeded the luxury tax the previous two seasons under Ned Colletti, paying a total of $38 million in luxury taxes.

Also worth noting, the Dodgers were far from alone this season. For the first time ever, four teams spent above the luxury tax threshold, bringing the overall total owed to $72.8 million. Of course, the New York Yankees are among them, paying $26.1 million this season. The Boston Red Sox owe $1.8 million and the San Francisco Giants will pay $1.3 million.

McCoy Posted: December 20, 2015 at 07:05 AM | 17 comment(s)
  Beats: dodgers, luxury tax, yankees

Friday, December 18, 2015

Could the luxury tax divide MLB owners in labor talks? - LA Times

Maybe Moreno shouldn’t talk to the press.

With players concerned that large-market teams can use the CBT as a self-imposed salary cap, and with baseball’s revenues approaching a record $10 billion per year, the threshold would figure to rise in the new labor deal that would take effect in 2017.

“There’s a possibility it could go down,” Moreno said.

Jim Furtado Posted: December 18, 2015 at 06:46 AM | 0 comment(s)
  Beats: cba, economics, luxury tax

 

 

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