Dodgers News: 2022 Tax Penalty Revealed

Part of the craziness of this current offseason, with the Dodgers trying to get under the luxury tax, is that everything is just estimates and guesses at this point because nothing is final until the season ends. Performance bonuses, midseason acquisitions, and other factors can and will change LA’s final luxury tax number and it won’t be calculated until all the dust settles.

To illustrate the point, we recently finally found out how much luxury tax Los Angeles owes for 2022. We’ve known they were over the luxury tax limit, but we didn’t get the exact numbers until Wednesday.

The Los Angeles Dodgers were hit with a $32 million luxury tax for the second straight season, among six teams paying a penalty as baseball payrolls rebounded after the lockout to a record $4.56 billion. …

The Dodgers, assessed at a higher rate because they exceeded the threshold for the second straight year, owe $32.4 million on a luxury tax payroll of $293.3 million. That was down slightly from their $32.6 million penalty for 2021.

Any money saved during pitcher Trevor Bauer’s suspension under the domestic violence policy will be reflected in the Dodgers’ 2023 payroll.

The luxury tax threshold in 2022 was $230 million, so the Dodgers blew past that by more than $63 million even with the vast majority of Bauer’s salary being canceled due to his suspension.

In 2023, the luxury tax threshold moves up to $233 million, and Los Angeles appears intent on getting below that number to reset their escalating penalties. LA’s acquisition of Miguel Rojas appears to have put them over the limit, but again, they have until the end of the season to make moves to get back below the limit.

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