Dodgers, Mets are among six teams hit by MLB’s luxury tax penalty


NEW YORK — The Los Angeles Dodgers have been hit with a $32 million luxury tax for the second straight season, among six teams paid a fine as post-lockout baseball payrolls rebound to a record $4.56 billion.


The New York Mets have set a luxury tax payroll record at $299.8 million, surpassing the 2015 Dodgers’ $297.9 million, and will pay taxes for the first time since the penalty began in 2003, according to final figures compiled and obtained by Major League Baseball. Associated Press.

The NL champions Philadelphia Phillies, New York Yankees, San Diego Padres and Boston Red Sox also crossed the $230 million tax threshold. The tax total of $78 million surpassed the previous high of $74 million in 2016, when six teams were also paid.

The Dodgers, who are valued at a higher rate because they’re over the bottom line for the second year in a row, owe $32.4 million on a luxury tax payroll of $293.3 million. That was down slightly from the $32.6 million penalty for 2021.

Any money saved while bowling Trevor BauerThe suspension of employment under the domestic violence policy will be reflected in the Dodgers payroll for 2023.

with a jug Max Scherzer The Mets led the major leagues with a salary of $43.3 million, rising to second place in the payroll and owed $30.8 million. Under owner Stephen Cohen, who bought the team before the 2021 season, New York has boosted projected 2023 tax payrolls to nearly $400 million. The Mets and the Dodgers are paying a new so-called “Cohen tax,” a new fourth threshold starting at the $290 million agreed upon by negotiators for teams and players last March.

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

The 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 rise of just under $4.25 billion was set in 2017, which is also the first year of teamwork. bargaining agreement.

The first $3.5 million in tax money is used to fund player benefits, and 50% of the remaining amount will be used to fund players’ individual retirement accounts. The remaining 50% of the remaining amount goes to a Supplemental Commissioner’s discretionary fund intended to be awarded to teams receiving revenue sharing money whose local non-media revenue has grown over several years.

Tax payroll calculated by the average annual values, including bonuses earned, of players on the 40-man rosters along with just over $16 million per team for benefits and $1.67 million per club out of a total of $50 million for players. before arbitration.

The four tax limits last season were $230 million, $250 million, $270 million and $290 million. First time offenders pay 20% on the amount over the first threshold, 32% over the second threshold, 62.5% over the third threshold, and 80% over the fourth threshold. As repeat offenders, the Dodgers and Padres pay 30% over first, 42% over second, 75% over third and 90% over fourth.

The Yankees have been taxed about $358 million since the penalties began, followed by the Dodgers with $215 million.

Among the regular payrolls, the Mets lead with $274.9 million, followed by the Dodgers with $270.6 million, the Yankees with $254.7 million and the Philadelphians with $238.5 million. Six teams have crossed $200 million, up from two in 2021 and a previously high of five in 2019.

Oakland’s $49.1 million was the lowest total of any team in a full season since Houston’s $29.3 million in 2013.

Regular payroll is based on 2022 salaries, bonuses earned and pro rata shares of signing bonuses for the 40-man rosters.

%d bloggers like this: