The Dodgers and Yankees will pay Major League Baseball a combined $52 million in luxury taxes on top of their 2017 payrolls. The clubs want those figures to be zero by this time next year.
LA is a taxpayer for a fifth consecutive season, according to figures compiled by the commssioner's office that were published Tuesday by The Associated Press. As such, it owes Major League Baseball $36.2 million for again exceeding the tax threshold. The Dodgers' 2017 payroll for tax purposes was $253.6 million; the threshold was $195 million.
The Yankees, who have been over the threshold for all 15 seasons of the tax, owe $15.7 million, a relative pittance compared to previous payments. Their tax payouts have totaled $341 million dating to 2003, the AP reported.
Five clubs in all will pay the luxury tax in 2017: the Dodgers, Yankees, Giants ($4.1 million), Tigers ($3.6 million) and Nationals ($1.4 million). The Giants and Tigers finished last in their respective divisions while the other three clubs made the playoffs. The Dodgers lost to the Astros in seven games in the World Series.
MLB uses the average annual value of contracts, bonuses, benefits for players and other expenses to calculate clubs' payrolls as of the end of the season. Half the tax money goes toward funding player benefits, while other portions go to players' retirement funds and to teams that don't pay taxes.
Yankees principal owner Hal Steinbrenner has insisted for years that he wants to get below the threshold, and his team is in good position to make that happen in 2018 even after acquiring Giancarlo Stanton ($25 million AAV) from the Marlins.
Dodgers, Yankees get MLB luxury tax bills; reset in '18 goal for both teams
Sporting News | Dec 20