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The Dodgers Plan On Staying Under the Luxury Tax

Dodgers
Nov 7, 2017; Los Angeles, CA, USA; Los Angeles Dodger president of baseball operations Andrew Friedman addresses the media at a press conference at Dodger Stadium. Mandatory Credit: Kirby Lee-USA TODAY Sports

Much to the chagrin of Dodgers fans everywhere, it looks like Los Angeles will look to stay under the luxury tax yet again. The Dodgers were able to cut their payroll down in 2018 to avoid any future tax hikes for the next few years. And yet, the Dodgers will still shoot to keep their payroll down.

The payroll in 2018 pushed right up to $195 million, right where they needed to be in order to be in compliance with the regulations. The Luxury tax thresholds for the next few years are as follows: $206 million in 2019, $208 million in 2020, $210 million in 2021. The number has not yet been set for the 2022 season.

If Hyun-jin Ryu and Yasmani Grandal were to accept their qualifying offers and if all seven players receive their arbitration salaries, the Dodgers’ payroll would already be sitting at $190 million. That means that with just 16 players on contract, they have roughly $16 million to work with for the season before hitting the luxury tax. However, investors have already predicted their payroll to sit somewhere around 185 for 2019. It is unclear what direction they will head in the market with this in mind,

Regardless, it does not exactly instill a ton of confidence in a fan base that has watched their team lose back-to-back World Series. This is a team that is looking to win now, and not shelling out money for top free agents could prove to be disastrous. The Dodgers have relied on guys like Chris Taylor and Max Muncy over the past few years, guys that produce 20 million dollar talent for peanuts. Who knows if they will find that guy this year.

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Written by Brook Smith

Brook is the Senior Editor of Dodgers Nation, with several years of experience in sports journalism. He is an avid Dodgers and Lakers fan, and can be spotted fairly often at Dodger Stadium and Staples Center.

6 Comments

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  1. Your facts do not bode well for 2019 and beyond. If we don’t win a WS title while this group of players is together, we never will.

    • Hello Jim and happy Friday to you! I fully concur with you here. If their main intention is to stay under that threshold, then forget about competing for quite sometime as ya said. While if we use our farm and develop within, many opportunities for player up grades in areas of real need will be missed. As far as signing prominent FA’s , such as those who are already established evryday starting players, they will not want to come here and accept being converted to a platoon player, and I am not sure money alone would change their minds. Sure, this year’s players ‘bought to this lefty/righty platoon to obsession, it does not mean other solid MLB players will want to buy in to playing one day, having a 3 or 4 hit game with 4 or 5 RBI’s, only to find they are sitting the very next game.

  2. $206MM for 2019 is more than enough money to field a WS competitive team. It will require some difficult decisions, for example if Ryu accepts the QO will the Dodgers trade Rich Hill to offset the increased payroll? For 2020 the Dodgers will likely shed $50MM in contracts (Kemp, Hill or Ryu, Freese, Wood)

    • I’m the one that called in to ML B.com and exposed how you guys were posting despite the comment section being shut down and now you guys have ti post here lol

      • Si yo creo que Kemp debe salir de DODGERS ayuda a verdugo llegar y disminuye salario.

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