The New York Yankees may have paid the most luxury tax dollars in the MLB over the past 13 years, but the Los Angeles Dodgers were reportedly hit with a record luxury tax figure for the 2015 season.
Major League Baseball issued a $43.6 million tax on the Dodgers after the team finished the season with a $291 million payroll, according to Ronald Blum of The Associated Press. Additionally, it was the first time ever four teams exceeded the $189 million payroll threshold and were taxed by the league.
The Yankees ($26.1 million), Boston Red Sox ($1.8 million) and San Francisco Giants ($1.3 million) are also responsible for coughing up the dough thanks to their enormous payrolls. They brought the overall total to $72.8 million in taxes, which is another MLB record.
The Dodgers will pay an MLB record of over $43 million in luxury taxes this season. pic.twitter.com/MIYZCeYYpw
— ESPN Stats & Info (@ESPNStatsInfo) December 19, 2015
New York has been repeat offenders of exceeding the luxury tax threshold since the 2003 season, but the Dodgers' last three years have resulted in the record tax for a single season.
Here are the Dodgers' payrolls over the last three seasons, according to Baseball Prospectus:
2013: $223,126,072
2014: $236,199,934
2015: $282,175,296*
*Final calculations by MLB found figure to be $291 million
First-time luxury tax offenders are hit with a 17.5% penalty on every dollar spent over $189 million the first year; 30% if they pass the threshold for a second consecutive season; 40% for the third consecutive year; and then 50% for four or more consecutive offenses.
The Dodgers were hit with the 40% penalty after the MLB calculated they finished the season with a $291 million payroll.
Additionally, the league set another record when 22 teams finished the season with payrolls of $100 million or greater, The AP noted.
It doesn't look like the cost of players will get any cheaper, either. After mammoth contracts were handed out to pitchers David Price ($217 million), Max Scherzer ($210 million) and Zack Greinke ($206.5 million) over the past couple of years, these numbers could continue to increase in subsequent seasons.
