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.


Player 2022 Notes 2022
Alberto, Hanser FA-TBD
Anderson, Tyler Signed-FA $8,000,000
Barnes, Austin $2,150,000
Bauer, Trevor $34,000,000
Bellinger, Cody Arb-Est $16,100,000
Betts, Mookie $25,600,000
Buehler, Walker $4,000,000
Duffy, Danny $3,000,000
Ferguson, Caleb Arb-Est $700,000
Freeman, Freddie Signed FA $24,700,000
Hamels, Cole FA
Heaney, Andrew Signed FA $8,500,000
Hudson, Daniel Signed FA $7,000,000
Kahnle, Tommy $2,375,000
Kershaw, Clayton $17,000,000
Muncy, Max $8,666,667
Nelson, Jimmy $700,000
Pollock, AJ $12,000,000
Price, David $31,000,000
Taylor, Chris $15,000,000
Treinen, Blake $8,750,000
Turner, Justin $17,000,000
Turner, Trea Arb-Est $19,800,000
Urías, Julio Arb-Est $8,800,000
David Price Trade -$16,000,000
Club Control $11,900,000
40 Man Minors $2,250,000
Player Benefits $16,500,000
Total $290,691,667
CBA Tax Threshold $230,000,000
Amount Over Threshold $60,691,667
Draft Pick Penalty $270,000,000
Amount Under Pick Penalty $20,691,667

 


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.

Abbreviations

  • 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

Contract Notes

Freddie Freeman:

Contract Incentives

Clayton Kershaw:

  • $1 million each for 16, 20, 22, 24, 26 games pitched.
  • $1.5 million for Cy Young ($500K for second or third).
  • Credit Robert Murray

Tommy Kahnle:

  • 2022 – $250,000 for 60 games and $500,000 for 70 games

Walker Buehler:

  • 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.

Daniel Hudson:

  • 2023 – $1M buyout or $6.5M. Base salary can increase by $100K for each of 30, 35, 40, 45, and 50 games finished.

Danny Duffy:

The Competitive Balance Tax

Here is a quick summary of how the competitive balance tax works (copied and pasted from MLB):

A team’s Competitive Balance Tax figure is determined using the average annual value of each player’s contract on the 40-man roster, plus any additional player benefits. Every team’s final CBT figure is calculated at the end of each season. (Note: If a player signs a contract extension that doesn’t kick in until a later season, his AAV for the purposes of the CBT doesn’t change until the new deal begins.)

The following thresholds were put in place per the 2022-26 collective bargaining agreement:

  • 2022: $230 million
  • 2023: $233 million
  • 2024: $237 million
  • 2025: $241 million
  • 2026: $244 million

A club that exceeds the Competitive Balance Tax threshold is subject to an increasing tax rate depending on how many consecutive years it has done so.

First year: 20 percent tax on all overages

Second consecutive year: 30 percent

Third consecutive year or more: 50 percent

If a club dips below the luxury tax threshold for a season, the penalty level is reset. So, a club that exceeds the threshold for two straight seasons but then drops below that level would be back at 20 percent the next time it exceeds the threshold.

There’s also a surcharge threshold for clubs that exceed the base threshold by $20 million or more.

$20 million to $40 million: 12 percent surcharge

$40 million to $60 million: 42.5 percent surcharge for first year; 45 percent for each consecutive year after that

$60 million or more: 60 percent surcharge

Clubs that are $40 million or more above the threshold shall have their highest selection in the next Rule 4 Draft moved back 10 places unless the pick falls in the top six. In that case, the team will have its second-highest selection moved back10 places instead.

To sum it up the Dodgers will have financial penalties if they exceed $230 million in 2022 and would have a draft pick penalty if they exceed $270 million.

h/t: COTS, Baseball-Reference