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Sunday, June 05, 2022

Los Angeles Dodgers open with $310 million payroll, set to pay record $47 million tax bill

The Los Angeles Dodgers opened the season with an all-time-high $310.6 million payroll for purposes of the luxury tax and are on track to pay a record tax of nearly $47 million, according to figures compiled by Major League Baseball and obtained by The Associated Press on Friday.

Five teams exceeded the $230 million threshold as of Opening Day, which if unchanged by the season’s end would be one shy of the most, in 2016.

After adding Freddie Freeman and reaching a big one-year deal with Trea Turner, Los Angeles was the only team to exceed the new fourth threshold, the so-called Cohen Tax named after New York Mets owner Steven Cohen. But the Dodgers’ payroll would drop by about $28.1 million if the domestic violence suspension of pitcher Trevor Bauer is upheld by an arbitrator. The Dodgers’ payroll included $34 million for Bauer, the average of his $102 million, three-year contract.

The Mets, in their second season since Cohen bought the team, were second at $289.3 million—$667,278 below the Cohen Tax. That left them on track for a tax payment of just under $22.5 million after adding pitcher Max Scherzer, center fielder Starling Marte, outfielder Mark Canha and All-Star infielder Eduardo Escobar.

 

RoyalsRetro (AG#1F) Posted: June 05, 2022 at 11:48 PM | 4 comment(s) Login to Bookmark
  Tags: dodgers, luxury tax

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   1. Joyful Calculus Instructor Posted: June 06, 2022 at 01:51 PM (#6080194)
The Los Angeles Dodgers opened the season with an all-time-high $310.6 million payroll for purposes of the luxury tax


But the Dodgers’ payroll would drop by about $28.1 million if the domestic violence suspension of pitcher Trevor Bauer is upheld by an arbitrator.


The Mets, in their second season since Cohen bought the team, were second at $289.3 million—$667,278 below the Cohen Tax.


Some quick math: Assuming Bauer's suspension holds up, that puts the Dodgers at $282.5 million. The Cohen-tax appears to be at $290 million, assuming some rounding error on the Mets payroll. That means the Dodgers would be below the Cohen tax.
   2. The Yankee Clapper Posted: June 06, 2022 at 10:09 PM (#6080325)
The Los Angeles Dodgers opened the season with an all-time-high $310.6 million payroll for purposes of the luxury tax and are on track to pay a record tax of nearly $47 million . . .
If the Dodgers can absorb $357.6M in player compensation costs, it’s hard to believe the most teams need to treat the initial luxury tax threshold as anything like a hard cap.
   3. John Northey Posted: June 06, 2022 at 10:58 PM (#6080331)
No question. In 2012 the Blue Jays were #20 in season ending payroll tax at $103,726,534. Inflation calculator says that works out to $130,614,365 in todays dollars. #20 in 2021 was Texas at $111,309,808. So clearly MLB isn't keeping up with standard inflation for player salaries, let alone the traditional higher levels MLB has paid. Right now the Rangers are 19th though at $156,214,667 which suggests last winter was a catch up one.
   4. John Northey Posted: June 06, 2022 at 11:03 PM (#6080332)
FYI: doing it in reverse you get $210 mil today worth $166.8 in 2012. Only 3 teams were above that in 2012 (Yankees, Phillies, Red Sox) from what I can find (may be more, not sure if the figures I found had all things factored in for luxury tax purposes.

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