The Los Angeles Dodgers owe $26.6 million in luxury tax and have made history by reaching the mark following their official 2014 payroll numbers. Meanwhile, the umpires and the MLB agreed on a new labor deal.
The Dodgers have snapped the New York Yankees' 15-year streak having baseball's highest payroll. Los Angeles also broke the payroll record with $257,283,410 on the books for 2014, according to Major League Baseball, which is $20 million higher than the record set by New York after the 2013 season. The Associated Press obtained the information from the MLB.
The luxury tax policy began in 2003 and it was instituted to control the spending of big market teams. If a club goes over $189 million in payroll in a given season, they are subjected to the tax, which is then used for funding player benefits (50%), funding the development baseball in counties without high school baseball (25%) and supporting the Industry Growth Fund (25%). First timers who exceed the $189 million threshold must pay 17.5% in taxes, while second timers pay 30%, third timers 40% and those who go over four times or more pay 50%.
Every franchise that owes money must submit their payment to the commissioner's office by January 21.
As for others on payroll, the league's umpires have been working with the MLB to reach a new labor deal. The current five-year deal will expire on December 31 and the two sides avoided a work stoppage when they agreed on a new deal this weekend. Sources told The Associated Press on condition of anonymity because the agreement still needs to be ratified next month.
Representatives of the World Umpires Association and MLB team owners met this week in New York and apparently came to a consensus. The league's officiating crew is entering a new era of baseball where instant replay has been instituted and the pace of play is expected to quicken with some new rules that could take action in the near future.
There will be more information available when the deal is ratified some time in January.
