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Thursday, November 08, 2018

Document prepared for potential investors says Dodgers plan on staying under luxury tax threshold - Los Angeles Times

More info in the article.

Under the projections prepared for potential investors, the Dodgers would spend $185 million in 2019 and 2020, $191 million in 2021 and $196 million in 2022.

Should you rent or own? How fast can you get that part? Does it fit the budget? That’s what your Cat® Dealer is here for. Learn more at MiltonCAT.com/promotions/caterpillar-national-program.

The Dodgers’ payroll projections are not binding. One high-ranking team official called the figures a “forecast,” and another said he would be “shocked” if the player payroll did not top $200 million next season.

The luxury tax would be assessed on any team that spends $206 million in 2019, $208 million in 2020, and $210 million in 2021. The 2022 threshold has not been set.

...

The document was prepared before the 2017 postseason, when the Dodgers generated additional revenue by advancing to the World Series for the first time in 29 years.

For the 2017 season, the Dodgers paid $290 million to cover payroll and the luxury tax.

Nonetheless, in their 2018 payroll, the Dodgers hit the $195 million targeted in the document, enabling them to avoid paying a luxury tax for the first time in Guggenheim’s six full seasons of ownership. The Dodgers lost at least $100 million in each of the first four full seasons under Guggenheim, including a $200-million loss in 2015, according to the document.

The document showed potential investors how management intended to reverse the team’s financial course, including by reducing payroll below the level of those first full seasons. The projections call for the Dodgers’ revenues to increase from $591 million in 2019 to $695 million in 2022.

Jim Furtado Posted: November 08, 2018 at 11:13 AM | 7 comment(s) Login to Bookmark
  Tags: dodgers

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   1. The Duke Posted: November 08, 2018 at 12:15 PM (#5784283)
Is Caterpillar providing the financing for new investors ?
   2. Walt Davis Posted: November 08, 2018 at 07:13 PM (#5784597)
Call Caterpillar and see how long to get a replacement back for Kershaw.
   3. Walt Davis Posted: November 08, 2018 at 07:14 PM (#5784599)
Rent or own is always a tough call, but always, always pwn.
   4. You Know Nothing JT Snow (YR) Posted: November 08, 2018 at 07:20 PM (#5784603)
Hooray, capology has finally come to baseball!
   5. base ball chick Posted: November 09, 2018 at 02:17 AM (#5784740)
the dodgers are losing 100 million a season, at least??

cmon - they can only afford a 100 mill payroll?

pls
   6. Fancy Crazy Town Banana Pants Handle Posted: November 09, 2018 at 08:44 AM (#5784774)
The Dodgers are currently making 400-500m in revenue a year. So I am sure there is some "creative" accounting going on, like spreading the purchase price over multiple years, or counting the Dodgers as a depreciating asset (even though it is rising in value) or nonsense like that.

But at their peak, the Dodgers were paying about 300m in salary and LT combined. Plus other genuine costs of running the franchise. So saying they could only afford 100m a season from what they claimed isn't fair either.
   7. Nasty Nate Posted: November 09, 2018 at 09:31 AM (#5784794)
This would be a pretty big deal, right?

I know they have lots of talent under contract and will probably have good teams, but their competition in the NL would be very happy if they started going with a much smaller payroll.

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