Since the Guggenheim Group purchased the Los Angeles Dodgers about two years ago, they’ve been the most free spending team in baseball. Contracts for Zack Greinke, Hyun-Jin Ryu, Yasiel Puig and the blockbuster trade with the Boston Red Sox showed they were going to be major players in free agency and the trade market.
The Dodgers payroll was at $237 million, the largest in team history and because of this, knew they were going to pay a luxury tax this season. Today, that luxury tax figure came out according to Ronald Blum of AP Sports:
According to Major League Baseball calculations Thursday, the Los Angeles Dodgers are the only team that exceeded the tax threshold this year and must pay $11.4 million.
Along with the Dodgers, the New York Yankees paid $28 million in luxury tax, but they’re trying to keep costs below $189 million in 2014 so they don’t have to pay the tax again. First time offenders are taxed 17.5% of how much they go over the $189 million number and increases each time the team eclipses that number.
Meanwhile, the Dodgers are trying to dial back the spending as there’s talk they’ll go through the off-season without making a major splash. While the Yankees had a payroll of $237,018,889, just $164,647 ahead of the Dodgers 2014 payroll.
For at least the next few years the Dodgers are most likely going to be a luxury tax team as their commitment to players on long-term contracts will keep it hard to keep costs relatively low.
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