MLB News

Dodgers taxed $32M, MLB payrolls record $4.5B

Los Angeles Dodgers vs Los Angeles Angels

Los Angeles Dodgers vs Los Angeles Angels

NEW YORK – 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 New York Mets set a luxury tax payroll record at $299.8 million, topping the $297.9 million of the 2015 Dodgers, and will pay tax for the first time since the penalty started in 2003, according to final figures compiled by Major League Baseball and obtained by The Associated Press.

NL champion Philadelphia, the New York Yankees, San Diego and Boston also exceeded the $230 million tax threshold. The total tax of $78 million topped the previous high of $74 million in 2016, when six teams also paid.

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.

Trevor Bauer was counted at $4,109,890 for the luxury tax in 2022 and $3,868,131 for regular payroll. Any money saved from the clawback in 2023 during Bauer’s suspension under the domestic violence policy will be reflected in the Dodgers’ 2023 payroll figures.

With pitcher Max Scherzer leading the big leagues at a $43.3 million salary, the Mets shot up to second in payroll and owe $30.8 million. Under owner Steven Cohen, who bought the team before the 2021 season, New York has boosted its projected tax payroll for 2023 to nearly $400 million. The Mets and the Dodgers both pay the so-called new “Cohen Tax,” a new fourth threshold starting at $290 million agreed to by negotiators for teams and players last March

The Yankees owe $9.7 million, the Phillies $2.9 million, the Padres $1.5 million and the Red Sox $1.2 million after finishing last in the AL East. San Diego also exceeded the initial threshold for the second year in a row.

Tax money is due to MLB by Friday.

Total spending, based on regular payrolls, rose 12.6% from $4.05 billion in 2021, the lowest in a fully completed season since $3.9 billion in 2015. The previous high of just under $4.25 billion was set in 2017, also the first year of a collective bargaining agreement.

The first $3.5 million of tax money is used to fund player benefits and 50% of the remainder will be used to fund player Individual Retirement Accounts. The other 50% of the remainder goes to a supplemental commissioner’s discretionary…

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