Dodgers to Pay MLB-Record $43.7 Million Luxury-Tax Penalty

Adam Wells@adamwells1985Featured ColumnistDecember 1, 2015

New owners of the Los Angeles Dodgers, from left, Robert Patton, Stan Kasten, Mark Walter, Earvin
Damian Dovarganes/Associated Press

The Los Angeles Dodgers' record-setting payroll in 2015 has also led to the franchise setting a new Major League Baseball record in luxury-tax penalties.     

According to Bob Nightengale of USA Today, after spending $298.3 million on talent last year, the Dodgers will be paying $43.7 million in competitive balance tax. 

The Dodgers — who paid about $50 million to players who never appeared for them in 2015 — are one of four teams this season to be subjected to Major League Baseball's "Competitive Balance Tax," which started in 2011 and applies to teams that surpass a certain payroll threshold. The year's threshold was $189 million. The other teams being taxed included the New York Yankees ($26 million), Boston Red Sox ($1.87 million) and San Francisco Giants($1.33 million).

This marks the third consecutive season in which the Dodgers have paid a luxury tax and second consecutive season they have had the highest luxury-tax adjusted player payroll in MLB

According to Maury Brown of Forbes in December 2014, the Dodgers' payroll of $277.7 million last season marked the first time in 15 years a team that wasn't the New York Yankees led MLB in payroll. It cost the team $26.6 million in luxury-tax penalties last year. 

Under the rules of MLB's current collective bargaining agreement, which runs through 2016, the luxury tax is used in an attempt to discourage teams from spending more than a set amount determined by average salary for players on the 40-man roster and an additional $12.9 million in benefits. 

It's hard to feel too bad for the Dodgers, as Nightengale pointed out the franchise has an $8.5 billion television contract, though Time Warner Cable might be regretting that deal. 

For all their massive spending the last two years, the Dodgers are still searching their first World Series since 1988. They have made the playoffs the last three years but have just one postseason series win during that stretch. 

Money can buy a lot of things, but so far for the Dodgers, all it has done is made their wallets lighter without producing the desired results.

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