Dodgers Team News

Dodgers News: Los Angeles Owes Largest Luxury Tax Bill in MLB

In an unsurprising development, the Los Angeles Dodgers have the largest luxury tax bill in Major League Baseball, according to the Associated Press. L.A. will pay an additional $31.8 million for its payroll. It is the fourth consecutive season the Dodgers passed the tax threshold.

Franchises are taxed for spending in excess of $189 million. The Dodgers led the Majors investing $252,551,634 on players, though payroll attrition certainly occurred in the organization.

Perhaps the decline in spending alludes to the Los Angeles Times report stating the Dodgers’ MLB-mandated need to cut payroll. In reality, the cost cutting is natural as the team sheds dead money off the books.

Much is made of the Dodgers’ attempt to “buy a championship” in the Guggenheim Partners ownership, but most of the team’s financial investments haven’t moved the needle. Brett Anderson was paid $15.6 million in 2016. Carl Crawford made $20.75 million with $21 million coming next year. Players such as Alex Guerrero, Andre Ethier and Scott Kazmir, among others, will continue to inflate payroll despite carrying minimal impact or being off the roster altogether.

The Dodgers were reportedly aiming to trim payroll, but re-signing Rich Hill, Justin Turner and Kenley Jansen was counterintuitive to that desire. Even with the dead weight and a new tax ceiling of $195 million next year, L.A. is probably staying beyond the mark for a while, especially if it dips into the 2018 free agent class and eventually gives extensions to players such as Clayton Kershaw, Corey Seager, Julio Urias, etc.

The luxury tax bills are as follows:

  • Los Angeles Dodgers: $31.8MM
  • New York Yankees: $27.4MM
  • Boston Red Sox: $4.5MM
  • Detroit Tigers: $4MM
  • San Francisco Giants: $3.4MM
  • Chicago Cubs: $2.96MM

The AP states it is the 14th straight season the Yankees exceeded the tax line. The Cubs are first-time payers, but with the trajectory of their roster, they likely become mainstays on the list. The Tigers are pushing to decrease payroll in an effort to dodge the payment next season.

Willie Calhoun wants to stay in the Dodgers’ plans

Gabe Burns

Gabe Burns is an award-winning journalist. He serves as a reporter and editor at the DodgersNation news desk. He additionally works as editor-in-chief of The Spectator, Valdosta State University's student paper. Gabe's work has been featured on a number of platforms, including Draft Breakdown and Pro Football Spot. His byline has been cited in media such as the New York Times, Los Angeles Times and Chicago Tribune. Aside from covering Dodgers baseball, Gabe enjoys watching the Tampa Bay Buccaneers, Orlando Magic and Tampa Bay Lightning. He can be followed on Twitter at @GabeBurns_DN.

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