Some of the salary information is from COTS. AAV is the Average Annual Value and is what is used to calculate the salaries for luxury tax purposes.
Note: On phones and some other devices it is probably best to view the table by tilting your phone to landscape mode.
|Heaney, Andrew||Signed FA||$8,500,000|
|Hudson, Daniel||Signed FA||$7,000,000|
|David Price Trade||-$16,000,000|
|40 Man Minors||$2,250,000|
|CBA Tax Threshold||$212,000,000|
|Amount Over Threshold||$22,651,667|
|Draft Pick Penalty||$252,000,000|
|Amount Under Pick Penalty||$17,348,333|
The “Amount Under Threshold” is the amount before tax penalties begin. The “Amount Under Pick Penalty” is the amount before they start losing draft positions.
- Arb-Est: Estimated arbitration driven salary – MLB Trade Rumors is the primary source
- FA: Free agent
- + inc. – plus incentives
- QO – given or accepted a Qualifying Offer in free agency
- 2022 – $250,000 for 60 games and $500,000 for 70 games
- 2022 – $500K for games started at these points – 14, 16, 18, 20, 24, 28 – up to $3M. $1.125M for Cy Young winner and $625K if second or third.
- 2023 – $1M buyout or $6.5M. Base salary can increase by $100K for each of 30, 35, 40, 45, and 50 games finished.
The Competitive Balance Tax
Here is a quick summary of how the competitive balance tax works:
- The thresholds for being taxed for the duration of the CBA are:
- 2022: pending
- There are various penalties for exceeding the CBT that begin at 20%. The number changes based on the number of consecutive years the threshold is exceeded.
- The penalties reset when a team stays under the threshold.
- A team that exceeds the threshold by $40 million or more are penalized in the draft. A team not in the top 6 of the draft will have their first pick moved back 10 spots.
- Penalties are calculated based on the Average Annual Value (AAV) of a multi-year contract.
To sum it up the Dodgers will have financial penalties if they exceed $210 million in 2021 and would have a draft pick penalty if they exceed $250 million.