Dodgers, Yankees to Pay MLB's Highest Luxury Tax for 2017

The Los Angeles Dodgers will pay the highest luxury tax in 2017, according to Ronald Blum of the Associated Press, owing $36.2 million.

The Yankees come in with the second highest figure at $15.7 million in 2017, the organization's 15th straight year paying the luxury tax, followed by the San Francisco Giants ($4.1 million), Detroit Tigers ($3.7 million) and Washington Nationals ($1.45 million).

Bob Nightengale of USA Today broke down the luxury tax in November, noting "luxury tax payrolls are based on the average annual values of contracts and earned 2017 bonuses. While only the Dodgers and Yankees are above the $195 million threshold, teams also must include about $13 million in benefits based on their 40-man rosters."

As Nightengale wrote, the Dodgers bill is "calculated at 50 percent for a third-time or more offender. It also includes a 12 percent surtax on the $40 million above the $195 million payroll, and 42.5 percent for the total amount above $235 million."

The Dodgers have now been in the luxury tax for the past five years, paying nearly $150 million in taxes over that duration, and will be paying the highest luxury tax for the fourth straight year. They had a total player payroll of $244 million in 2017.

By trading Adrian Gonzalez, Scott Kazmir, Brandon McCarthy and Charlie Culberson to the Atlanta Braves for Matt Kemp, however, the team trimmed its 2018 payroll by $25 million to about $181 million, according to Blum. Kemp is expected to be cut or traded, making the deal solely about luxury tax relief next season.

The Yankees, meanwhile, came in with a payroll at $209.3 million and have now paid a total of $341 million in luxury taxes. The Yankees are currently sitting on a payroll of $177 million for next season, also below the luxury tax threshold.