For all the blockbuster trades they’ve made and expensive offseason signings, the Dodgers will only pay $9.9 million worth of luxury tax for the 2013 season since the organization is a first-time offender.
With a payroll of $234.5 million, the Dodgers will pay a 17.5% tax, but the Yankees lead the majors in luxury tax payment of $29.9 million. However, president Stan Kasten spoke to Bob Nightengale of USA Today about paying the tax and the strategy moving forward:
We are mindful of the tax and we understand the impact it will be this year and in the future. But I think over time, we will become a team that doesn’t pay tax. The luxury tax is a good thing. It’s been a good thing for our industry, and I’m fully supportive of it. It’s made a difference.
Kasten and general manager Ned Colletti talk about having to catch-up after the McCourt era, which is why they took on all the salary from the Red Sox and signed Zack Greinke in the offseason.
The most significant trade of this season was acquiring Ricky Nolasco from the Marlins and to be able to part with three lower tier prospects, the Dodgers had to take on all of his remaining salary.
It’s been clear since day one that the new ownership group was committed to winning and paying the luxury tax is another sign that Kasten, Colletti and the other partners are willing to pay the price to field a winning team.
In case you missed it, be sure to find out more about the impending deal for Cuban infielder Alexander Guerrero.