Dodgers Set to Pay Record $47 Million Luxury Tax Bill on $310M Payroll

Scott Polacek@@ScottPolacekFeatured Columnist IVJune 4, 2022

LOS ANGELES, CA - JUNE 25: The Dodgers field logo during the game between the Chicago Cubs and the Los Angeles Dodgers on June 25, 2021 at Dodger Stadium, Los Angeles, CA. (Photo by Peter Joneleit/Icon Sportswire via Getty Images)
Peter Joneleit/Icon Sportswire via Getty Images

The Los Angeles Dodgers are set to pay quite the bill to compete in 2022.

Ronald Blum of the Associated Press reported the National League West team opened the campaign with a record $310.6 million payroll and are set to pay a record luxury tax of approximately $47 million.

The new collective bargaining agreement set four tax thresholds of $230 million, $250 million, $270 million and $290 million. The Dodgers will be a repeat offender, which means they will pay 30 percent on the amount above the first threshold, 42 percent above the second, 75 percent above the third and 90 percent above the fourth.

By comparison, first-time offenders pay 20 percent above the first, 32 percent above the second, 62.5 percent above the third and 80 percent above the fourth.

Los Angeles already held the record for the highest luxury tax payroll at $297.9 million and a record tax of approximately $43.6 million in 2015.

Blum noted that the Dodgers' payroll would decrease by around $28.1 million if Major League Baseball's suspension of Trevor Bauer is upheld. The league suspended him in April for 324 games, or two full seasons, for violating its joint domestic violence, sexual assault and child abuse policy.

The right-handed pitcher is appealing the ruling.

Los Angeles is no stranger to paying the luxury tax considering it did so every season from 2013 through 2017.

Yet the high payrolls have resulted in sustained success, as the Dodgers have made the playoffs every season since 2013. They reached three World Series titles during that span and won the championship during the shortened 2020 campaign.

They also appear well on their way to another postseason appearance at 34-17, which is four games ahead of the second-place San Diego Padres in the National League West race.