The New Luxury Tax Threshold Means The Top 10 Salaried Clubs Will All Be Affected In The Present + Future

MLB Reports

The Dodgers have spent over $300 MIL in back to back years, and are the clubhouse leaders in Luxury Tax penalties paid. At a 50% penalty, the Los Angeles forked out $40 MIL in Luxury Taxes in 2016. With an estimated $193 MIL payroll - considering there are several roster holes now created by departing players, the team will need to spend around $235 MIL in 2017 total payroll. With a 50% penalty - and an additional 40$ hit for going $40 MIL over the new $195 MIL limit in 2017, I highly expect the organization will be less willing to spend 90 cents extra for every dollar spent beyond that. The Dodgers have spent over $300 MIL in back to back years, and are the clubhouse leaders in Luxury Tax penalties paid. At a 50% penalty, the Los Angeles forked out $40 MIL in Luxury Taxes in 2016. With an estimated $193 MIL payroll – considering there are several roster holes now created by departing players, the team will need to spend around $235 MIL in 2017 total payroll. With a 50% penalty – and an additional 40% penalty hit for going $40 MIL over the new $195 MIL limit in 2017, I highly expect the organization will be less willing to spend 90 cents extra for every dollar spent beyond that.

Hunter Stokes (Chief Writer/Part Owner) 

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With the new CBA being tentatively signed yesterday through 2021 – the lower payroll teams will finally see some steeper enforcement of higher payroll squad.

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Posted on December 1, 2016, in MLB Reports. Bookmark the permalink. Leave a comment.

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