The Los Angeles Dodgers shattered the previous luxury tax ceiling by paying a record $169.4 million after clinching their second consecutive World Series championship.
Dodgers Set New Luxury Tax Record
The record tax payment brings the Dodgers’ total luxury tax over the past two seasons to $272.4 million. The $169.4 million figure eclipses the $103 million high they posted last year. It marks the franchise’s fifth straight season of exceeding the luxury tax threshold.
Mets Face Highest Tax Bill
The New York Mets’ tax bill is the second‑highest among the nine teams that owe money, standing at $91.6 million for the current year. Over the last four years, Mets owner Steve Cohen’s ownership has driven the team’s tax obligation to $320.3 million.
Dodgers Payroll Details
Los Angeles’ $417.3 million payroll includes $949,244 in non‑cash compensation for Shohei Ohtani. Ohtani’s contract provides a suite at Dodger Stadium, an interpreter, and other perks that qualify as non‑cash benefits.
Mets Payroll Details
The Mets’ $346.7 million payroll contains $369,886 in non‑cash compensation for Juan Soto. Soto’s contract specifies that the team will cover his use of a luxury suite, up to four premium tickets, and personal team security for him and his family.
Other Teams’ Tax Burdens
The Yankees owe $61.8 million, followed by Philadelphia at $56.1 million. Toronto, the American League champion, has a tax bill of $13.6 million. San Diego’s tax is just under $7 million, while Boston and Houston each owe $1.5 million. Texas’s liability is about $190,000.
Record Tax Total for Nine Teams
The nine teams that are paying tax match the record number set last year. The collective tax total for these teams is $402.6 million, topping the previous high of $311.3 million.
Tax Deadline
All tax payments are due to Major League Baseball by January 21. Teams that miss the deadline face penalties and additional fees.
Closing Summary
The Dodgers’ record luxury tax payment underscores the escalating costs of building championship teams. While the Mets’ high tax bill reflects heavy spending under Steve Cohen, other franchises are also grappling with significant tax obligations. With the total tax collected by nine teams now exceeding $400 million, the league’s luxury tax system continues to play a pivotal role in shaping team payroll strategies.
