NEW YORK – The Los Angeles Dodgers According to Major League Baseball figures and The Associated Press, the team opened the season with a record $310.6 million in payroll. They are now on track to pay a record $47 million luxury tax.
Five teams had exceeded the threshold of $230 million as of opening day. If it was not changed by season’s end, that would make 2016 the most expensive year.
After adding Freddie Freeman Reaching a huge one-year contract with Trea TurnerLos Angeles was the only place that exceeded the fourth threshold, the Cohen Tax. New York Mets owner Steven Cohen. If Trevor Bauer’s domestic violence suspension is upheld by an arbitrator, the Dodgers payroll would fall by $28.1 million. Bauer’s average three-year, $102 million contract cost $34 million.
In their second season, the Mets were second at $289.3million, $667.278 lower than the Cohen tax. After adding Max Scherzer, a pitcher and center fielder, the Mets were on track to pay just $22.5 million in tax. Starling Marte, outfielder Mark Canha All-Star infielder Eduardo Escobar.
The Yankees came in third place at $261.4million, which would result in a tax of $7.6million.
Philadelphia, which fired Joe Girardi, its manager, on Friday after a bad start, was fourth at $233.1 Million. This would put it on track to pay roughly $629,000 in tax. Boston was fifth at $2532.3 Million, which would lead to a tax around $466,000.
San Diego was the only other team to pay tax last season, being $694,982 lower than the $230 million threshold.
Luxury tax payrolls are the average annual value of all 40-man players, plus $16 million per team in benefits and $1.67million for each club’s portion of the new $50,000,000 pool for pre-arbitration. Other figures include cash transactions, option buyouts, money owed and money released to players.
As roster moves and trades take place, the totals may change. The tax bill is based on December’s final number. MLB included club offers in its payroll figures for players still subject to salary arbitration.
The following 99-day lockout was broken, the March collective bargaining agreement established four tax thresholds for this year: $230 million; $250 million; $270 million; $270 million; and $290 million.
First-time offenders are responsible for 20% of the amount over the first threshold. This includes 32% above that second threshold, 62.5% above that third, and 80% above that fourth.
The Dodgers are a repeat offenders and pay 30% more than the first, 42% more than the second, 75% more than the third, and 90% more above the fourth.
Los Angeles has paid tax every season between 2013-17. The total bill for the year ended last year was $182 million, since 2003 when the luxury tax was introduced. It’s second only after the Yankees’ bill of $348 millions.
The Dodgers would have to pay tax for 2023 if they owe more than the next year’s threshold of $233 Million, 62% over $253 Million, 95% above $273million, and 110% above 293 million.
The Dodgers’ 2015 luxury tax payroll record of $297.9 million was the previous highest. It resulted a tax record of just under $43.6million.
After it falls below the initial threshold, the tax rates for a team are reset to the lowest level.
There were four teams with luxury tax payrolls below $100 million: Oakland (64.8 million), Pittsburgh (73.5 million), Baltimore (79.9 million), and Cleveland (91.2 millions).
This week, the players’ union released their 2021 salary survey, which revealed that the average baseball salary has dropped 10.2% since 2017.
The union calculated that the 2021 average was $3,67933355, which is down 5.2% from the 2020 average if the season had not been cut short by the coronavirus epidemic.
After rising to $3.97 million from 2016 to a record just below $4.1 million the first year of a collective bargaining agreement, the annual average fell by $1500 in 2019, and fell to $4.05million for 2019. If there had been a full schedule, the average for 2020 would have been $3.89million. But it was cut to $1.6million due to prorated salaries earned during the 60-game seasons.
The union typically issues its salary reports in December. However, the 2021 edition was delayed because staff were engaged in collective bargaining.
The following figures are based on 2021 salaries and earned bonuses, as well as prorated shares of signing bonus for 1,070 players on 26 man rosters and injured lists. MLB calculated the average at $3.579,341.
The Associated Press studied the data and concluded that this year’s average opening day was 5.9% higher at $4.4 million. They used expanded rosters and midpoints to account for arbitration players. As veterans are replaced with younger players, the average falls over the course of a season.