Now that MLB and the players association have reached on a new 5-year collective-bargaining agreement, but what does this mean for the Los Angeles Dodgers?

The first issue that the Dodgers might face with the new CBA will be the luxury tax. Under the old CBA, the maximum tax for a third-time offender, as the Dodgers were, was 50 percent for each dollar when exceeding the luxury tax.

As reported by Jayson Stark of ESPN:

If the Dodgers don’t get their 2017 payroll under $235 million, the Dodgers would pay 50% for ever dollar over $195 million and under $215 million. For every dollar between $215 million and $235 million, the Dodgers would pay an additional 12% surtax. From $235 million to $250 million, the surtax jumps to 45%. Their total penalty would be $36.5 million if their payroll was at a flat $250 million, which could be equated to the combined salary of two higher level free agents.

The luxury tax threshold will increase yearly, with the break down as follows:

2017: $195 million

2018: $197 million

2019: $206 million

2020: $209 million

2021: $210 million

Dodgers News: Stan Kasten Assures No Mandate To Cut Debt

How much money do the Dodgers have committed in 2017? That would be $150.4 million. Per SportsTrac, here are the players that will be paid in 2017:

players-payroll-1

players-payroll-2

players-payroll

players-payroll-total

As a result, the Dodgers may have to forego re-signing Justin Turner and Kenley Jansen and may only be able to sign one or none.

The second issue has to deal with teams and acquiring free agents. If teams sign a free agent, whether they accepted or rejected a qualifying offer, they will no longer lose their first-round draft pick. However, if they are a team that has surpassed the luxury-tax threshold, they will lose two picks; a second-and fifth-round picks, along with $1 million of their international pool. Free Agents can only be offered a qualifying offer one time in their career.

The third and final issue would be signing international players or amateur players. According to Bob Nightengale, the new spending limits on international amateurs are staring at $5 million per team for teams in the top 15 in revenue and $6 million per team for the bottom 15.

The Dodgers have a history of spending their money on the international pool and did not mind the penalties, but there will no exceptions until the current CBA expires in 2021. The cap is a hard cap, and it cannot be exceeded.

So, stars like Shohei Otani from Japan will not be making their journey to the United States anytime soon. The age that the bonus pool affects was also raised from 23 to 25, so many stars that come over may wait longer in order to circumvent these rules.

The rule will benefit the owners and teams who will keep looking at their local talents and will be harmful to teams that are seeking the world’s best talent.

Other changes include the All-Star game no longer deciding World Series home field advantage, and the reduction of the disabled list from 15 to 10 days.

We will have to wait and see how the 2017 season will affect the Dodgers and the rest of baseball.

Justin Turner or Kenley Jansen? Prioritizing the Dodgers Top Two Free Agents

10 Responses

  1. pauldodgerfan1965

    The question I have as far as HFA for WS is, now that the ASG will no longer determine HFA and it will be which Pennant winner, AL or Nl has the best season record.  What if both Pennant winners have the same record?  How would they determine HFA?

    Reply
  2. blue shoes

    Under the new CBA will the 2yr ban on the Dodgers’ international signing bonuses exceeding $300k continue?

    Reply
  3. KingmanofLodi

    so make a deal with Crawford…instead of 21 mil this year…..1ml a year for next 25!!! Trade McCarthy like you almost did in Braun trade…package Either in there also….or just Eat it this year….Remember Kid K can opt out next year and he is from Texas….

    Reply
  4. KingmanofLodi

    Also, anybody like the Idea of picking up Evoldi…he is hurt, but….Never should have been traded…????

    Reply
  5. KingmanofLodi

    pauldodgerfan1965 probally Head to head, or Division record…My question is what if one is a wild card with a better record than the Division Winner/ league champ….who then has it????

    Reply
  6. pauldodgerfan1965

    KingmanofLodi pauldodgerfan1965
    My guess is and only a guess, is that a wild card winner would not have a better record, otherwise that team would be a division winner or league champ, but again, IDK how that would work.

    Reply
  7. pauldodgerfan1965

    KingmanofLodi
    I would not mind bringing back Evoldi, but he won’t pitch at all in 2017.   I certainly would not want a repeat performance of taking on Crawford that they did in that 2012 trade with Boston, and he was already on the shelf for the rest of that year!

    Reply

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