Headlines

  • Mariners Close To Acquiring Brendan Donovan
  • Dipoto: Mariners Working On Another Addition
  • Reds Sign Eugenio Suarez
  • White Sox Acquire Jordan Hicks
  • Giants, Luis Arraez Agree To One-Year Deal
  • White Sox To Sign Austin Hays
  • Previous
  • Next
Register
Login
  • Hoops Rumors
  • Pro Football Rumors
  • Pro Hockey Rumors

MLB Trade Rumors

Remove Ads
  • Home
  • Teams
    • AL East
      • Baltimore Orioles
      • Boston Red Sox
      • New York Yankees
      • Tampa Bay Rays
      • Toronto Blue Jays
    • AL Central
      • Chicago White Sox
      • Cleveland Guardians
      • Detroit Tigers
      • Kansas City Royals
      • Minnesota Twins
    • AL West
      • Athletics
      • Houston Astros
      • Los Angeles Angels
      • Seattle Mariners
      • Texas Rangers
    • NL East
      • Atlanta Braves
      • Miami Marlins
      • New York Mets
      • Philadelphia Phillies
      • Washington Nationals
    • NL Central
      • Chicago Cubs
      • Cincinnati Reds
      • Milwaukee Brewers
      • Pittsburgh Pirates
      • St. Louis Cardinals
    • NL West
      • Arizona Diamondbacks
      • Colorado Rockies
      • Los Angeles Dodgers
      • San Diego Padres
      • San Francisco Giants
  • About
    • MLB Trade Rumors
    • Tim Dierkes
    • Writing team
    • Advertise
    • Archives
  • Contact
  • Tools
    • 2025-26 Top 50 MLB Free Agents With Predictions
    • Free Agent Contest Leaderboard
    • 2025-26 MLB Free Agent List
    • 2026-27 MLB Free Agent List
    • Projected Arbitration Salaries For 2026
    • Contract Tracker
    • Transaction Tracker
    • Agency Database
  • NBA/NFL/NHL
    • Hoops Rumors
    • Pro Football Rumors
    • Pro Hockey Rumors
  • App
  • Chats
Go To Pro Hockey Rumors
Go To Hoops Rumors

Nine Teams Exceeded Luxury Tax Threshold In 2025

By Anthony Franco | December 19, 2025 at 11:54pm CDT

Major League Baseball has finalized its calculations of teams’ competitive balance tax payrolls for the 2025 season. As first reported by The Associated Press, nine teams surpassed the $241MM base threshold. In a separate post, The AP lists the finalized CBT numbers for all 30 teams.

The payments are as follows:

  • Dodgers: $169.4MM
  • Mets: $91.6MM
  • Yankees: $61.8MM
  • Phillies: $56.1MM
  • Blue Jays: $13.6MM
  • Padres: $7MM
  • Astros: $1.5MM
  • Red Sox: $1.5MM
  • Rangers: $190K

Teams pay escalating penalties for exceeding the threshold in consecutive seasons. The Dodgers, Mets, Yankees, Phillies and Rangers have all paid the tax in at least three straight years — subjecting them to the highest escalator fees. The Astros went over the line for the second straight season. The Blue Jays, Padres and Red Sox had gotten below in 2024 and are categorized as first-time payors.

This is the second straight year in which nine teams paid the CBT. The Braves, Giants and Cubs had gone over the line in ’24 but dipped below this year, which resets their status going into 2026. Atlanta’s active offseason puts them in position to go back into tax territory next year, when the base threshold climbs to $244MM. San Francisco and Chicago each have projected CBT numbers more than $40MM below that right now.

While public estimates from RosterResource and Cot’s Baseball Contracts offer an excellent approximation of teams’ payroll commitments, the official numbers are not available during the season. It’s not uncommon for rounding errors in those calculations to vary by a few million dollars. That generally isn’t a big deal but can matter for teams that are hovering very close to the tax line. Each of the Red Sox ($249MM payroll), Astros ($246MM) and Rangers ($241.38MM) were believed to have gone narrowly beyond the $241MM cutoff, but that wasn’t 100% established until this evening — particularly in the case of Texas.

The Dodgers ($417MM), Mets ($347MM), Yankees ($320MM), Phillies ($314MM) and Blue Jays ($286MM) all had payrolls above $281MM. That was the third tier of penalization and marked the point at which a team’s top draft pick is dropped by 10 spots. The Mets were the only of those five that didn’t make the playoffs. Their top pick drops from 17th to 27th. The Yankees, Philadelphia, Toronto and L.A. all have their first-round pick dropped to between 35th and 40th.

Teams that paid the CBT are entitled to the lowest level of compensation for losing free agents who declined a qualifying offer. They receive a draft choice after the fourth round for each qualified free agent who walks. They’re charged the heaviest penalty — their second- and fifth-highest picks in 2026 and $1MM from their ’27 international bonus pool — for signing a qualified free agent from another team.

San Diego and the Mets receive a pick after the fourth round for losing Dylan Cease and Edwin Díaz, respectively. Toronto (Bo Bichette), Houston (Framber Valdez) and Philadelphia (Ranger Suárez) would receive the same if their free agents sign elsewhere. The Dodgers surrendered their second- and fifth-round selections for Díaz. Toronto is slated to do the same for Cease, but if Bichette walks, they’d give up that compensatory pick instead and get their fifth-rounder back.

The Dodgers’ combined payroll and tax bill for the 2025 season lands north of $586MM. The two-time defending champions’ tax hit alone is higher than the payrolls of the bottom 12 teams in the league. There were 14 clubs that had a CBT number above $200MM. The Braves, Cubs, Giants, Angels, Diamondbacks and Mariners were the other six teams above the median. All but Seattle spent more than $200MM.

On the other end, the Marlins ($87MM) and White Sox ($92MM) were the two teams with payrolls below $100MM. The Rays ($103MM), Pirates ($109MM) and Athletics ($118MM) rounded out the bottom five — followed by the Guardians, Nationals, Twins, Brewers and Reds.

Overall, the league will collect just under $403MM in taxes. Teams must make the payments by January 21. The first $3.5MM will be used to fund player benefits. Half the remaining money goes to players’ retirement accounts, while the other half is used for revenue sharing distribution from MLB to teams.

Share Repost Send via email

Boston Red Sox Houston Astros Los Angeles Dodgers New York Mets New York Yankees Newsstand Philadelphia Phillies San Diego Padres Texas Rangers Toronto Blue Jays

Latest On Pete Fairbanks’ Market
Main
Rays Trade Shane Baz To Orioles
View Comments (236)
Post a Comment

236 Comments

  1. tigers182

    1 month ago

    If there’s one thing we as Tigers fans never have to worry about, it’s exceeding the luxury tax. 😎

    18
    Reply
    • sad tormented neglected mariners fan

      1 month ago

      If Mike was still alive he would not let this happen, it’s becoming a trend for the children of owners to take over and lower payroll

      7
      Reply
      • Fever Pitch Guy

        1 month ago

        sad – Owners who are running out of time tend to spend more if they’ve never won a championship, can’t really blame them.

        6
        Reply
        • deweybelongsinthehall

          1 month ago

          Fever, it’s just stupid to go over the tax level by $1.5m. If you’re crossing that line, go for it. $190k? lol.

          12
          Reply
        • Uncle Pedro’s Dancing Kittens

          1 month ago

          Fever- If I remember correctly wasn’t Dustin May the reason the Sox went over at all? Talk about a waste.

          5
          Reply
        • Fever Pitch Guy

          1 month ago

          dewey – They were $4.7M over, the above article states the amount they have to pay in luxury tax is $1.5M although that’s a bit more than the 20% penalty, not sure why.

          Here’s something I haven’t seen anyone mention …… if let’s say 25% or more of the 2027 regular season gets wiped out, that would give the Red Sox a CBT reset. That’s why they don’t really care about going over 2 consecutive years, they are banking on not being a 3-time offender in 2027.

          5
          Reply
        • Fever Pitch Guy

          1 month ago

          Uncle – You won’t believe this ….. it wasn’t just May, the Sox paid him only $700K because his 2025 salary was only $2.1M.

          It was also Matz, the Sox paid him $4M because his 2025 salary was $12.5M.

          Without acquiring either one, they’d have been right at the threshold.

          6
          Reply
        • GenoSeligPrieb

          1 month ago

          True. But that’s usually when owners are family, and when they’re fans too. Unfortunately, in Milwaukee, Mark Attanasio only shows up 2-3 times a year, for PR purposes, and won’t risk losing a dollar to go all-in, when the team is so close. As long as he holds Milwaukee fans hostage and doesn’t sell, there’s no hope.

          4
          Reply
        • rememberthecoop

          1 month ago

          Im sorry Geno, you won’t get any sympathy from me as a Cubs fan. We greatly outspend you yet you beat us every year Nats comical at this point.

          4
          Reply
        • deweybelongsinthehall

          1 month ago

          Fever, thanks for the correction.

          2
          Reply
        • GenoSeligPrieb

          1 month ago

          Respect. I just want that 1 damned ring, and then I can die satisfied!

          2
          Reply
        • Randy Red Sox

          1 month ago

          and now John Henry won’t eat for a week

          1
          Reply
        • Randy Red Sox

          1 month ago

          i am sure Jordan Hicks didn’t matter either

          Reply
        • Uncle Pedro’s Dancing Kittens

          1 month ago

          Thanks Fever- I guess Matz was at least a useful signing. I thought May would have cost them more than that.

          2
          Reply
        • Uncle Pedro’s Dancing Kittens

          1 month ago

          Randy- I wonder how that all worked with the luxury tax. How much of Devers salary were they responsible for vs. the amount they took on from Hicks? I assume Hicks was less than Devers, but Hicks certainly did not provide any help to the team. I assume they are going to give him one more chance since he is costing so much.

          2
          Reply
        • Uncle Pedro’s Dancing Kittens

          1 month ago

          Fever- It has been a while since the Sox have made any moves this offseason. Any predictions on what their next move is going to be? About time for them to do something, we could use a nice gift for the holiday season.

          2
          Reply
        • Fever Pitch Guy

          1 month ago

          Uncle – Agreed on Matz, even though he’s not a strikeout guy he performed well with the Sox.

          4
          Reply
        • Fever Pitch Guy

          1 month ago

          Uncle – No need to wonder, Spotrac is a great source for salary info.

          CBT-wise the Sox were responsible for a little under $6M of Hicks’ salary this year.

          Devers was $13M the Sox were responsible for this year.

          Giants were responsible for $17.5M of Raffy’s salary this year.

          4
          Reply
        • Fever Pitch Guy

          1 month ago

          Uncle – Normally I stay away from predictions because they are like lottery tickets, only a very small percentage actually turn out good.

          I’ll narrow down my thoughts on possible moves in order of likelihood:

          Trade for Donovan
          Trade for Contreras
          Trade for Marte
          Sign Suarez
          Sign Okamoto

          4
          Reply
        • PoisonedPens

          1 month ago

          Ah, yes, the “cheap” Red Sox owner who spent over $400M extending players last year. Got it.

          Reply
        • PoisonedPens

          1 month ago

          You don’t have to wonder; it’s all on Spottrac.

          Reply
        • hitman32

          1 month ago

          Fever…

          I like the idea of trading for Marte OR Donovan

          We do need a catcher as well as a 1B cuz I do not believe Casas can stay on the field & perform regularly.

          Okamota…interesting.

          Ranger Suarez…absolutely!

          1
          Reply
        • all in the suit that you wear

          1 month ago

          FPG: “Without acquiring either one, they’d have been right at the threshold.”
          =================
          Wrong. May and Matz accounted for $4.7M, but the Red Sox were over the threshold by $8M.

          Reply
        • Uncle Pedro’s Dancing Kittens

          1 month ago

          Thanks- I just need to use the right source. Good to know.

          1
          Reply
        • Uncle Pedro’s Dancing Kittens

          1 month ago

          Fever: Looks like you figure they are moving on from Bregman. I don’t find enough time to research different sites to gather enough information to make a good prediction. Those sound like reasonable options and all the names have been in the rumor mill so very feasible. I assume they will pick up a relief pitcher at some point. I am ready to see them make a move to solidify the offense. Will be fun to see what they do.

          Would your preference still be Suarez to get them the real home run bat they have lacked?

          1
          Reply
        • Fever Pitch Guy

          1 month ago

          Pen – Last year two Sox players were extended, Rafaela and Bello. Combined extensions worth $105M.

          Who else do you believe got extended last year?

          Your math is *slightly* off. LOLOLOL!!!

          3
          Reply
        • Fever Pitch Guy

          1 month ago

          hit – I meant Eugenio, not Ranger. LOL

          2
          Reply
        • Fever Pitch Guy

          1 month ago

          Uncle – Bregman’s home is New Mexico and his Dad is running for New Mexico governor. If the reports are true that Arizona is offering 6 years, Red Sox will NOT be matching or beating that.

          My preference would be Suarez, yes …. because he will be relatively cheap, he addresses the need for a righty with power, and he’s an awesome clubhouse presence.

          Marte I’d enjoy too, but I have a feeling he won’t enjoy his time in Boston.

          4
          Reply
        • Uncle Pedro’s Dancing Kittens

          1 month ago

          Fever- If Arizona is going to offer Bregman 6 years, I would not blame the Sox for not matching that.

          2
          Reply
        • hitman32

          1 month ago

          Fever…

          Okamota 1B, 3B – Donovan & Marte both 2B or 3B, along with D able to play SS & Marte able to play CF would give us some versatility for sure!

          Not sold on Eugenio…yes he hits bombs, or he K’s plus his age is starting to play a factor.

          Ranger Suarez definitely gives us a strong TOR pitcher which I truly believe we need.

          All great ideas but you watch, it will be another “we attempted” & then had to goto option B which is sifting through the castaways.

          Reply
        • Fever Pitch Guy

          1 month ago

          hit – Eugenio just had his best season since 2019 including a career-high 49 homers, no sign of age-related decline there.

          I like Ranger a lot too, but the Sox aren’t trading any of Crochet, Bello, Gray or Oviedo so are you saying trade both Tolle & Early, and Sandoval and Crawford? I really think they are done looking for a SP, their remaining budget involves bats only and maybe a reliever although they could easily convert a starter or two into a reliever although that would devalue them.

          Yeah I really wouldn’t be surprised if they don’t give a free agent contract bigger than $50M total. They have a ton of excess bodies to trade, that’s what their plan was all along … fill needs via trade instead of via free agency, it makes the profit bigger.

          3
          Reply
        • all in the suit that you wear

          1 month ago

          FPG: “fill needs via trade instead of via free agency, it makes the profit bigger”
          =================
          It makes financial flexibility bigger.

          1
          Reply
        • TB Sox NY

          1 month ago

          Unfortunately,not true.If you win one then you want another,then you need to be great every year.The standards go up as you win.

          Reply
        • hitman32

          1 month ago

          Fever…
          Eugenio had a good season indeed but I have a feeling it will not be repeated again.

          If it were my decision…yes Tolle as part of a package trade. I would definitely not let Early be part of any trades.

          Time will tell if anything is about to happen!

          1
          Reply
        • Fever Pitch Guy

          1 month ago

          hit – I totally agree on Early, love his makeup.

          But unless they go with a 6-man rotation, another SP acquisition would squeeze Early out of the rotation.

          1
          Reply
      • Jarred Kelenic's Beer Can

        1 month ago

        Kids don’t want to lose their trust funds!

        1
        Reply
        • Another Dodgers Fan

          1 month ago

          I might dislike Bregman, but with his career earnings, he IS the trust fund in the family.

          2
          Reply
    • cwsOverhaul

      1 month ago

      They are at least in the most financially humble division where it’s not as big a deal if the various FO’s do a decent job.

      1
      Reply
    • MLB Top 100 Commenter

      1 month ago

      No Cubs on list

      2
      Reply
    • rondon

      1 month ago

      Yeah.. Be a Cub fan and deal with Crickett Ricketts.

      3
      Reply
  2. sad tormented neglected mariners fan

    1 month ago

    How many teams payrolls are lower than the dodgers luxury tax bill this year?

    10
    Reply
    • Kc smoke

      1 month ago

      I’d guess half the league minimum.

      Reply
    • geofft

      1 month ago

      The article said 12.

      9
      Reply
    • Superstar Prospect Wander Javier

      1 month ago

      16

      Mariners – $166M
      Orioles – $160M
      Tigers – $155M
      Cardinals – $144M
      Royals – $138M
      Twins – $136M
      Rockies – $124M
      Brewers – $123M
      Reds – $119M
      Nationals – $118M
      Guardians – $102M
      Pirates – $87M
      White Sox – $85M
      Rays – $79M
      Athletics – $79M
      Marlins – $70M

      3
      Reply
      • Superstar Prospect Wander Javier

        1 month ago

        My numbers were from fangraphs so these could be inaccurate… but its still staggering

        1
        Reply
      • Superstar Prospect Wander Javier

        1 month ago

        From the Article:

        St. Louis – $153,544,320
        Colorado – $146,730,542
        Cincinnati – $144,256,289
        Milwaukee – $143,503,166
        Minnesota – $141,653,205
        Washington – $133,693,002
        Cleveland – $128,186,431
        Athletics – $118,141,841
        Pittsburgh – $108,626,221
        Tampa Bay – $103,438,452
        Chicago White Sox – $91,811,137
        Miami – $86,926,975

        5
        Reply
        • DanFan

          1 month ago

          A lot of those teams can pay more. Especially Mariners, Pirates, Rays, Marlins making double digit operating margins %.

          2
          Reply
        • pepenas34

          1 month ago

          How much are these teams receiving from revenue shearing?. Is it the same amount for each team ?

          1
          Reply
        • good vibes only

          1 month ago

          I don’t doubt that some teams can invest more, but do doubt your knowledge on team operating margins.

          2
          Reply
        • DanFan

          1 month ago

          forbes.com/sites/justinteitelbaum/2025/03/26/baseb…

          Went by this from Forbes. 2024 numbers but I am fairly confident that the numbers are pretty close.

          Reply
        • Robert J. Wratcher

          1 month ago

          Source?

          Reply
      • Datashark

        1 month ago

        Marlins are $18m above Ohtani’s deferments

        5
        Reply
    • The Saber-toothed Superfife

      1 month ago

      “The Dodgers’ combined payroll and tax bill for the 2025 season lands north of $586MM. The two-time defending champions’ tax hit alone is higher than the payrolls of the bottom 12 teams in the league.” – quote by Anthony Franco, MLBTR, sportswriter

      The article is long but actually isn’t a bad read….. I can provide a link if you need it and are interested

      6
      Reply
      • JuanUribeJazzHands

        1 month ago

        SA

        The article is a terrible read, IMO

        Reply
    • Astros_fan_in_Aus

      1 month ago

      Can’t you read ?

      2
      Reply
      • Astros71

        1 month ago

        I needed to find an Astros fan. I know I might be bringing up something infamous. But what do you think a good punishment for the Astros is?

        Reply
      • DroppedBallFour

        1 month ago

        At best they can partially sound out words with 5 letters or less. Notice the pattern

        Juan
        Uribe
        Jazz
        Hands

        Words with 5 letters or less.

        1
        Reply
  3. Gwynning

    1 month ago

    The Dodgers tax bill is larger than half the teams’ PAYROLL… CRAZY. Dlags fly forever, I get it… but sheesh. Nuts.

    16
    Reply
    • Gwynning

      1 month ago

      Dlags AND flags fly forever, couldnt edit it haha

      11
      Reply
    • Clofreesz

      1 month ago

      I mean, it’s paying off right now.

      2
      Reply
      • Gwynning

        1 month ago

        Besides the obvious imbalance that disparity creates and sullies the general collective permutation of the “equal playing field”… I’m not really complaining about anything.

        6
        Reply
        • rememberthecoop

          1 month ago

          But the problem isn’t just that teams are able to spend more, it’s mainly that the bottom feeders could be spending more. Then the imbalance that everyone whines about wouldn’t look so bad.

          3
          Reply
        • Gwynning

          1 month ago

          So the perceived inequality amidst The League… is mainly because Miami won’t spend $140MM year-over-year?

          8
          Reply
        • bullred

          1 month ago

          I think MLB knows that there is no equal playing field without a cap which they say won’t happen. I think they are just trying to push the low spending teams up to where it looks like they are not throwing in the towel before the season starts. I’m sure they are telling them that the extra 40 mil might get them into or far into the playoffs. Teams showing a loss on their balance sheets does not mean they didn’t make money and now you are asking them to spend profits on maybe making the team better. There is going to be some kicking and screaming owners.

          Reply
        • seamaholic 2

          1 month ago

          A little. Not enough to really make a difference, and meanwhile Tampa and Miami and Cleveland play competitively without spending. So why should other teams bother? Only fans care about rings.

          1
          Reply
      • DroppedBallFour

        1 month ago

        It better. You’re a billion dollars in deferrals. You better win a championship every year next 10 years or you’re a failure.

        When you’re running a 500 million payroll but only paying taxes ion 300 mill you better be wining it every year

        You’re outspending everyone
        You’re tax dodging the cbt penalties and reason the cbt exists in the first place by using deferrals to lower your tax bill
        And you have 8 of the top 17 most deferrals on contracts while most teams have none

        8
        Reply
        • Gwynning

          1 month ago

          Huh, MLBTR Wrong Again
          Made me laugh. What’s your name all about? Haha

          Reply
        • DroppedBallFour

          1 month ago

          It all started when they tried to tell us how to feel about the Ohtani contract and evolved into them constantly being wrong about the padres payrolls last 3 years

          3
          Reply
        • Gwynning

          1 month ago

          Ah. Carry on champ! Cheers 🍻

          1
          Reply
        • Tigers3232

          1 month ago

          @Huh Deferrals are funded annually for future payouts with the principal needed to accrue to future payment. That principal is what it will ultimately cost the team and is also charged accordingly against the luxury tax.

          Deferrals are for piece of mind for the player at a cost of the time value of $. As far as the luxury tax there is no advantage.

          3
          Reply
        • DroppedBallFour

          1 month ago

          Idc if you defer a billion trillion dollars. The government operates on it and has forever for both Ds and Rs

          That being said
          If you agree to a 10 year 700 mill contract your tax bill should be 70 mill. You can “lower” your payroll obligations to 46 mill but for tax purposes it should be the aav for cbt purposes. Defer the entire contract idc pay him 0 dollars in payroll. But your tax bill better be reflect what you’re actually agreeing to.

          Cause all deferrals do is lower the aav which lowers the tax hit. Without deferrals dodgers are running 500-600 mill in payroll alone. Agreeing to spend that much money but only be taxed at 300 mill payroll is why deferrals are ruining the sports. Undermines the entire reason we have a cbt and necessitates an actual salary cap reflective of where the league is not the dodgers Yankees Mets

          10
          Reply
        • Ibleedblue 2

          1 month ago

          Tell us how it really makes you feel…

          1
          Reply
        • DroppedBallFour

          1 month ago

          “Tax the rich” “pay their fair share”

          “Don’t tax the dodgers billion dollar ownership group millions of dollars, let them pay less in taxes than they should they’re good for baseball”

          Pick one.

          1
          Reply
        • amk1920

          1 month ago

          The Dodgers are not going to win 10 World Series in a row. And it’s not some gotcha when they don’t

          1
          Reply
        • DroppedBallFour

          1 month ago

          Every time they fail to win it all while deferring a billion dollars in payroll and needing to lower their 500-600 million dollar payroll using deferrals it will be a total failure on their part.

          You’re the odds on favorite
          You not only invest the most money you’ve invested double your pre tax payroll into future obligations
          Your payroll is 2-3x what 2-3 teams can afford
          And you still need deferrals to lower your tax bill to win
          Yeah you don’t win it’ll be an utter failure

          3
          Reply
        • VinScullysSon

          1 month ago

          So tired of this. Nobody was going to pay Ohtani $700 million without deferrals. He would’ve gotten about $465 million otherwise. So either way the CBT was going to be around $47 million each year.

          4
          Reply
        • DroppedBallFour

          1 month ago

          Again

          Idc about deferrals

          I care about deferrals resulting in lower tax cbt taxes. That’s the issue.

          And you either solve that issue by
          Capping deferrals to 10% of payroll obligations
          Making it so the actual cbt tax bill is the true aav not the adjusted for deferrals aav. Cause all standard construct like Juan Sotos that contain 0 deferrals are already treated that way.

          Defer a dollar. Defer a million dollars. Defer the entire thing. Your tax bill should be agreed to amount (700 mill) divided by course of the contract (10 mill). Which is 70.

          Not 46 mill so Dodgers can go out and spend an additional 24 mill on someone to get 2 or more players for 70 mill aav

          4
          Reply
        • Another Dodgers Fan

          1 month ago

          They didn’t need deferrals. The player requested it.

          1
          Reply
        • william-2

          1 month ago

          The Dodgers payroll is insane, but not many publications have touched on how highly touted their system is at the same time. It usually takes sustained losing for some teams to climb that ladder. The Dodgers seem to be able to do it all, and for a very long time.

          Reply
        • william-2

          1 month ago

          It is a sham and everyone knows it. The salary is 70 million a year in REAL money at signing. There shouldn’t be any form of reward for it on top of signing the elite player.
          What should have happened is either the Dodgers are charged for the 70 a year for the 10 years, or they are charged the 2 per year, but will have to be charged the 68 during the deferred years. 47 a year for 10 years is a reward. 230 magically poofs.
          The player can freely decide to defer, but the team shouldn’t be able to defer that money out of existence for cap purposes.

          1
          Reply
        • DroppedBallFour

          1 month ago

          With great spending comes great expectations. Uncle Ben told me that before Mysterio offed him.

          Reply
        • DroppedBallFour

          1 month ago

          Winner winner chicken dinner.

          Reply
        • Tigers3232

          1 month ago

          Deferrals also lower the overall cost. It is called the time value of $. The principal required to fund each years deferral will accrue interest and that accrued $ will be paid out by whoever the $ was invested with.

          Under your school of thought they should also charge any investment income for the next 20 yrs for any players who played in 2025 and any of their 2025 salary that accrues up to the point Ohtani id paid.

          Sounds crazy doesn’t it?? Well thats exactly what you are saying about deferrals, you just dont understand you are saying it.

          1
          Reply
        • Tigers3232

          1 month ago

          The Dodgers are paying exactly what they should be . Because you are financial illiterate does not make reality change.

          1
          Reply
        • Tigers3232

          1 month ago

          @william $240 million will accrue via investment. It is called the time value of
          $. Those years Ohtani goes without the $46M that is being invested annually he is missing out on unrealized gains.

          2
          Reply
        • Longtimecoming

          1 month ago

          Just curious, what was your handle previously? Sounds like you are a SD fan as am I.

          1
          Reply
        • seamaholic 2

          1 month ago

          That’s not how deferrals work. Dodgers are paying Ohtani’s salary every year, just not to him. And are taxed. It’s an income tax avoidance scheme for Ohtani, not a cbt avoidance scheme for the Dodgers.

          2
          Reply
        • amk1920

          1 month ago

          Joke of a take from a fan of a clearly poverty stricken team. The Padres, Yankees, Mets and Phillies all had payrolls higher than the Dodgers at some point recently. But only the Dodgers not winning for a decade straight is a failure. Those little ol engine that could teams can have a zero combined rings with those payrolls and its okay because you dont understand how deferrals really work!

          1
          Reply
        • DroppedBallFour

          1 month ago

          A true champion isn’t measured by developing home grown players and signing them to an extension (Dodgers pre ohtani)

          A true champion is measured by spending billions of dollars, deferring billions of dollars, and needing 40-50% tax breaks from daddy manfred (current Dodgers).

          Want a cape? So you can be super mad?

          Since 2000 Dodgers have spent over 6 billion dollars. 6 billion. And suddenly they need tax breaks cause they can’t afford to pay taxes on 500-600 million payroll no they need to pay taxes on 300 mill lmao. Joke of a franchise

          Nobody is impressed with buying championships this way. You’re expected to win. You win it. Nobody’s like omg what an accomplishment!

          1
          Reply
        • DroppedThirdStrike

          1 month ago

          I guess you can be mad and be wrong at the same time.
          Carry on.

          Reply
        • AK sox fan

          1 month ago

          Then why did Soto get more than $700 million with no deferred money?

          Reply
        • Another Dodgers Fan

          1 month ago

          Write your congressperson and tell them to change the tax laws if it’s bothers you so much. Dodgers and players don’t write tax laws.

          Reply
        • Another Dodgers Fan

          1 month ago

          AK Sox fan

          Because roster construction wasn’t at the forefront of the decision making process, apparently.

          Reply
        • william-2

          1 month ago

          In a way yes. The team is investing the extra 680 million in holding and gaining off it over time so the value drops for them. Less out of pocket through earnings, but that isn’t and shouldn’t also be an inflationary gimmick used to reduce the contract value for the team also as a reward. It’s a sham. The team is earning off of the money THEY ARE NOT PAYING him until they do, which means they are paying him far less out of pocket in the future than that 680. That is also a positive to the team. They get the player, they get to earn off that 680, and as a further reward they wipe 23 million a year off the books towards their cap. 3 rewards, not counting the marketing money they earn by having him. It should be a straight 70 a year on the cap for 10, or 2 a year for 10, and 68 a year during the deferral years. There has to be accountability reflecting the actual money spent on the contract towards the cap during each year that contract is actually paid to avoid exploiting it.

          1
          Reply
        • william-2

          1 month ago

          Ahh, got it. So instead of paying him 700 million, they are actually paying him 230 million less than what the contract says. He will never get it.

          Wait, he is getting it. They are paying it. We are just ignoring the extra 230 million towards the teams cap over 10 years he plays for them, and then ignoring the years they pay him after. So we will just ignore those years he gets the 680 and pretend he made 470 total. I can see why big market teams would find this extremely beneficial to do and want to do it as much as they can. All upside.

          2
          Reply
        • rct

          1 month ago

          @seamaholic: “It’s an income tax avoidance scheme for Ohtani, not a cbt avoidance scheme for the Dodgers.”

          Thank you for calling this out. Ohtani’s contract is structured that way because *Ohtani* is avoiding paying California state taxes on $680 million of his deal. I don’t know why Ohtani keeps skating on this fact while the Dodgers get reamed. I’m a Mets fan but the Dodgers shouldn’t be getting the bulk of the criticism for the deferrals for Ohtani. Ohtani is the one being shady.

          1
          Reply
        • bullred

          1 month ago

          Huh, MLBTR Wrong Again –

          Think of it as the Dodgers setting up a 401K for Ohtani. They agreed for it to pay him 700M in the future but the Dodgers don’t put in 700M at the start they put in a lesser amount that MLB has worked out to 460M. Every team can do it for their players. Most players would want the money now and invest it themselves.

          Reply
    • Poolhalljunkies

      1 month ago

      Does that mean the Dodgers are essentially the notre dame of mlb ..paying teams to play them?

      3
      Reply
      • Gwynning

        1 month ago

        Lol 🤣🍻

        Shame The Irish didn’t make the CFP, Bama shouldn’t have received the nod, imo.

        5
        Reply
      • DroppedBallFour

        1 month ago

        More like Oregon Ducks alumni founder of Nike Phil Knight who said he’d spend stupid NIL money to win a title for the school.

        Oddly enough both deferrals and NIL money need reigning in for the good of their respective sports long term

        2
        Reply
        • Tigers3232

          1 month ago

          @Huh Deferrals are already covered in players union contract. They are funded and accounted for accordingly.

          Fans being financially illiterate does not make them nefarious by default.

          2
          Reply
        • DroppedBallFour

          1 month ago

          Agreeing to 500 – 600 mill in payroll obligations but only being taxed at 300 mil cause deferrals undermines why the cbt exists and is why a salary cap will be implemented.

          “Financially illiterate” lmao. Your bank account is in the negative home shopping network. Sit this one out

          3
          Reply
        • DroppedThirdStrike

          1 month ago

          Tigers3232- Thank you

          Reply
        • DroppedThirdStrike

          1 month ago

          There will not be a salary cap.

          And deferrals will not even be a consideration for either side in the new CBA. Both sides are in agreement that it’s insignificant.

          4
          Reply
        • DroppedBallFour

          1 month ago

          There will be. Sorry to burst your bubble. It’s the tush push equivalent of the nfl.

          Reply
        • DroppedThirdStrike

          1 month ago

          No bubble to burst. Owners want a cap but know they won’t get one. It’s a negotiation tactic to get better terms on the CBT.

          And the small teams can’t afford to sit out an entire season without revenue sharing.

          Reply
        • DroppedBallFour

          1 month ago

          Union can say whatever it wants lmao

          What’s 50% of 0 when there’s a lockout

          What’s 100% of 0 when there’s a lockout

          You can make whatever demands you want. Doesn’t mean you’re gonna get them.

          That being said. The cbt system is good but needs amending. The simple fix would be
          CBT taxes should be based on aav of contracts

          Payroll can be based on deferrals and whatever.

          You wanna defer money fine. You’re still gonna pay your fair share in taxes. Not defer a billion dollars and pay cbt taxes on 300 mill instead of 500-600 mill

          I don’t care if you run 0 dollars in a year.

          But aavs on your contracts add up to 500-600 mill you better be
          Taxed
          Penalized
          At 500-600 mill

          Reply
        • DroppedThirdStrike

          1 month ago

          That’s what they are taxed on. The ‘V’ in AAV stands for value. That’s what it’s worth. That’s literally how the tax is assessed.

          Reply
        • DroppedBallFour

          1 month ago

          It’s not

          Three simple questions.

          1. What was the contract ohtani agreed to? How many years? How much money?

          2. How is aav calculated?

          3. What is his aav hit per year?

          Reply
        • DroppedBallFour

          1 month ago

          In case DroppedThirdStrike doesn’t know the answers

          1. “ Shohei Ohtani signed a record-setting 10-year, $700 million contract with the Los Angeles Dodgers in December 2023, the largest in sports history“

          2. AAV (Average Annual Value) calculation depends on the context, but generally involves (Total Contract Value) / (Number of Years)

          3. “ initially believed $70 million aav of his contract – the charge against the Dodgers’ payroll is actually the present-day value of $700 million over ten years, which is approximately $46 million a year.”

          Bonus Question: why would the dodgers defer 680 mill of 700 mill owed to Ohtani?
          Answer: “ By structuring the contract in this way, the idea is to give the Dodgers more financial flexibility in the short term, but also ease their burden relative to the Competitive Balance Tax (CBT),” Mark Feinsand of MLB.com explained.”

          So instead of 700/10 which is 70 aav. Dodgers deferred 680 mill and only owe 46 aav. Which they did to “ease their burden relative to the Competitive Balanxe Tax (CBT).”

          So yeah. His tax hit should be 70 mill not 46. It should be the actual aav regardless of deferrals that counts against cbt.

          1
          Reply
        • DroppedThirdStrike

          1 month ago

          How much do the Dodgers pay each year for the years that Ohtani is playing? They fund the designated account $46M per year minus the $2M salary he receives. When he’s done playing, the Dodgers pay nothing more. They will have funded the account and his salary a total of $460M.

          That’s it. You can’t tax them for more than they pay. That Ohtani will receive $700M due to how it’s structured and paid out is irrelevant. That the money deposited increases in value doesn’t change how much the Dodgers paid or how much they owe.

          They pay $460M. They are taxed on the $460M.

          That’s the sum total of their responsibility and everyone involved in the transaction agrees. The team, the player, his agent, the Players Association and the league are all in agreement on that.

          What part aren’t you seeing?

          Reply
        • DroppedThirdStrike

          1 month ago

          It would probably have been easier to understand for most if the deal had been explained differently.

          “After receiving his $460M contract, Ohtani agreed to loan $440M to Guggenheim for a period of X years in exchange for X percentage return, totaling $700M”

          If you think of it like it’s two transactions it might be easier to understand.

          The point is that the deferral doesn’t change the calculus of how much the Dodgers owe.

          Reply
        • DroppedBallFour

          1 month ago

          Did deferring money on a 10 year 700 mill contract change the aav of the contract?

          2
          Reply
        • DroppedBallFour

          1 month ago

          Why did the dodgers defer 680 mill of a 700 mill contract? What benefit did they gain by deferring money?

          2
          Reply
        • jmart1951

          1 month ago

          The Dodgers didn’t really gain anything. Ohtani, if he moves out of California will save millions in taxes that he would have otherwise paid the State of California

          Reply
        • Tigers3232

          1 month ago

          Ohtani will likely claim the income here in the US. If he claims it later on in Japan he ll be paying 55%. On top of that they have a much less convoluted tax system that does not afford taxpayers countless loopholes to decrease taxable income.

          Reply
        • DroppedThirdStrike

          1 month ago

          Yes, because it’s paid out over 20 years. This changes the value of the money being paid.

          Dave Winfield signed a $23M contract with the Yankees in 1980. That contract would be worth $88M today. If the Yankees had deferred that contract in 1980 til 2025, they’d still only have to pay the actual VALUE of the contract in 1980 dollars, which is $23M. Even though it would’ve been announced at the time as an $88M contract.

          Reply
    • kgcubs

      1 month ago

      Aloha bradduh, and the “elephant” in the room is that with the deferral loophole, la’s budget is really close to 500mil a year, their penalties would be over $200mil! They should also lose more draft picks and international bonus pool money. Manfred is so weak on certain issues. I don’t mean this towards la but for the whole league, this disparity is not helping. BTW even though I have Japanese heritage and lived there, I think all the restricted free agents from the NPB should be in our summer draft with other highschool and college players. Because the majority of those restricted players are late teens, early 20’s. That would have meant that Roki, Sho before him could not choose where they’d want to go but have to do like everyone else and spend their first many years with the organization that drafted them. La should not have had the best player in the draft, Roki get to sign with them, after they won the WS last year. I would have said the same had he signed with the Yankees, had they won. I hope the next CBA agreement deals with these issues. I’d also like to see a singing window for all free agents start after the WS and finish before the end of the year. 2027 could be a very interesting year for baseball! Mahalo!

      9
      Reply
      • kgcubs

        1 month ago

        Meant to say “signing” window, lol autocorrect! Mahalo

        1
        Reply
        • wildworldbycs

          1 month ago

          I think a singing window would be very interesting. Maybe the batter in the hole has to sing the walk-up for the current batter.

          1
          Reply
      • diphthong

        1 month ago

        If only Manfred had been more authoritative in his punishment of the Astros vs a slap on the wrist for their cheating transgressions. The commissioner’s lack of appropriate action (not Manfred nor the office’s first time) prompted LA to go Godzilla and stomp Tokyo into oblivion. The hilarious thing is that LA is doing it legally. Had Manfred suspended the Astros from the postseason for three years AND stripped them of all draft picks for the same amount of time, then possibly things would be different. It’s almost always better/easier to beg for forgiveness than ask for permission and the Astros (relatively) got away with it. Manfred’s actions did NOT set a good example for future, not in the best interests of baseball scenarios.

        1
        Reply
        • Astros71

          1 month ago

          @Dipthong.

          I’m pretty sure you are a sour Dodgers fan. What’s your proposed punishment for the Astros scandal? The Red Sox?

          You do realize the postseason involves extra money. The Astros will not comply with that. Also, a lot of the pitchers were innocent.

          1
          Reply
        • kgcubs

          1 month ago

          Aloha diphthong, absolutely agree with you. A friend and fan of la, were talking recently about that and how important it was then to discipline all the players involved in that scandal but remember, the commissioner as you know caved in to the player’s union and nothing was done. My la friend and I think that sent a team like the dodgers over the edge, they were doing everything to strengthen their organization and win a championship and had it stolen from them. I thought at the very least, Houston is stripped of the title. So LA says screw it, can’t win fairly so they just started buying up all the talent and Sho helped them with a deferral loophole and here we are today. Manfred has really hurt the game but many fans don’t care with short attention spans and money coming in… I never thought the bases would ever be adjusted, size wise. A gimmick to encourage more steal attempts. How about all facets of the game be used and players be taught smart base running instead of just swinging for the fences and not adjusting their approach at the plate. Don’t get me started, lol! Take care now. Mahalo

          2
          Reply
        • diphthong

          1 month ago

          Doesn’t matter what MLB teams had been involved. To dissuade/discourage future and similar situations, commissioner’s office needed to bring the hammer and they brought a yardstick. Don’t be surprised when something like this reoccurs sometime soon. It’s a bit different (now) than punishing guys for gambling on the edges (or directly) when you’ve sold your soul to gambling concerns that permeate every web site, broadcast, et al for MLB. The gambling never should have been brought into the sport officially but those who(m) are guilty should have the book thrown at them, A year’s suspension ain’t changing as many minds about doing it as you think it is.

          2
          Reply
        • kgcubs

          1 month ago

          Again, agree with you, the toughest punishment should have been implemented so that that type of behavior doesn’t happen again. Manfred is weak. Mahalo

          2
          Reply
        • diphthong

          1 month ago

          Re: gambling-lifetime ban from MLB (and minor leagues) along with criminal suit/charges. Not just for MLB but really should apply to all major sports, along with tennis, Olympic sports and the like. I get it. People are gambling on a football game coin flip so any sport where someone, in a bad (debt) position or needing/wanting to make cashish, is in a position to affect the game in any regard, they should be rung up and strung up. Fwiw, not a gambler.

          1
          Reply
        • kgcubs

          1 month ago

          Aloha Web, I understand that but Manfred could have threatened some form of discipline and tell the players union here are your options. At that moment when the scandal broke the momentum was on the MLB’s side. Cheating of that magnitude/sophistication needs to be dealt with as harshly as drug testing or more because it was a group effort. But again, I hear you and what is involved. Mahalo

          1
          Reply
        • kgcubs

          1 month ago

          Aloha web, got it, I understand. I may not like it but the commissioner at the time could only do so much. Thank you for that clarification. Mahalo

          1
          Reply
      • NyyfaninLAA land

        1 month ago

        So should MLB players opting for Japan be subject to a draft there? The freedom to choose where you work is what getting to free agency is about.
        And Tigers, you keep saying deferrals are taxed appropriately but taxes are paid on the present value of the contract only. So Ohtani’s $700 mil is treated as $46 million each year over the 10 year contract only.
        It’s not unfair to the player – he agreed to it. But the Dodgers do avoid luxury tax liability on nearly $24 million a year which would be $26.4 million in tax each year they remain at the top tax level. They’re not the only team doing so of
        course but they are by far avoiding the most.

        4
        Reply
        • DroppedThirdStrike

          1 month ago

          The problem is perception. It isn’t really a $700M contract, it’s a $460M contract that has to pay out at a higher dollar amount to account for the delay in payment. The contract is only worth $460M.
          All parties involved agree on this. Fans who can’t wrap their heads around this are the only ones who don’t agree.

          3
          Reply
        • kgcubs

          1 month ago

          Aloha Nyyfanin, sorry if I did not explain myself well. Coming out of the NPB league are restricted and unrestricted free agents. Not sure how much you know about the leagues and systems in Japan. I am blessed with friends and family there, went to school for a period in Nihon. Highschool baseball is huge in Japan. In fact every August there is a massive tournament that includes teams from all 47 prefectures. I lived there during one of these summer tournaments, very exciting as the whole country is tuned in.

          Now, out of highschool some of the more talented players won’t go to college but into the NPB, others into college and some will get into the NPB. Of course most won’t get into professional baseball, so they opt to play the “Shakaijin Yakyu” industrial leagues. These are very competitive, players like Hideo Nomo were discovered in this league, then brought over to professional ball in the NPB. Sorry, I digressed a moment 😁 there, so players that get their opportunity to be in the NPB and play are restricted, basically under control for so many years by the company that owns the team. Most players from Japan that are coming over to the MLB are non-restricted free agents like Hiseo Nomo, Ichiro Suzuki, Hideki Matsui, Seiya Suzuki and Shota Imanaga to name a few. But there are a few very talented young players there that want to come to the MLB but restricted. Such as Shohei and Roki. These restricted free agents if posted by their NPB teams, are the ones I feel should be in our summer draft. All the other non-restricted players can choose where they’d like to go as Ichiro and Yu Darvish did. That’s the majority of the players coming over. But for the restricted players who often are quite young and top talent, they are the one’s I’d like to see in our summer draft.

          To your other point, for a while the NPB teams restricted how many international players could be on any given team because the league didn’t want their top teams hoarding the outside talent. Personally I’d love to see more of my “relatives” playing for many more major league teams and not one team hoarding the best talent out of Japan. Take care now! Mele Kalikimaka and Shinnen Omedetou! Mahalo!

          2
          Reply
        • seamaholic 2

          1 month ago

          This. And the $46m or whatever the Dodgers are paying per year is about what he would have made from other teams.

          1
          Reply
        • Tigers3232

          1 month ago

          @Nyy Ohtani is paid $2M annually and $44M to fund the deferred $ with an investor, that $ will accrue to the future value by time of collection. The $46M is the present day value and what the Dodgers will ultimately pay out of their pockets.

          Should the Yankees be retroactively charged for any interest Jeter has made of his 1997 earnings??? Thats essentially what you are proposing when you mention the $70M with Ohtani. The present day value and cost to fund the deferrals is all that is relevant. The rest is only relevant to the Didgers so they can fund the deferral, Ohtani who will collect, and whoever the $ is invested with.

          2
          Reply
      • DroppedThirdStrike

        1 month ago

        Roki and Shohei did spend the first many years with the organization that drafted them. Shohei opted to leave under the rules that existed at the time, and Roki was subjected to earnings limitations for opting out when he did, and will continue to be subject to those limitations for a long time. But they were both professionals in a professional league, and in now way subject to a draft from another league.

        Deferrals change nothing. They are paid for and accounted for the same as every other contract. They just happen to be distributed differently. No change for the team, the CBT, the PA or anyone else. Deferrals are an accounting agreement, nothing more.

        2
        Reply
  4. diphthong

    1 month ago

    Some MLB teams get nearly $200 mil split between them. Wonder what is the cutoff for payouts? Is it ANY team that doesn’t exceed the tax threshold or some formula?

    Reply
    • Fever Pitch Guy

      1 month ago

      thong – The way it works, all 30 teams participate in equal revenue sharing, but the bigger market and bigger local revenue teams pay more than they receive while the smaller market teams with the lowest local revenue pay nothing.

      3
      Reply
    • Simm

      1 month ago

      Teams split national tv revenue. How the small market revenue receiving is spread out I have no idea. Also there is a 48% local tv money distribution.

      Reply
      • NyyfaninLAA land

        1 month ago

        Every club contributes 48% of local revenue (ticketing, local TV, etc) to a pool that is then shared back equally to the 30 clubs. So the higher revenue clubs get back less than they put in, lower revenue ones get more than contributed.

        Reply
        • seamaholic 2

          1 month ago

          Also the Dodgers have the most expensive tickets and sell the most of them. Their gate revenue alone is many times that of the small market teams, because of the size and wealth of their market. And they own their stadium outright.

          1
          Reply
  5. Cincyfan85

    1 month ago

    Bring on the cap (and floor)!

    10
    Reply
    • EndinStealth

      1 month ago

      I believe it will happen. Probably going to cost the fans most of if not all of the 2027 season.

      7
      Reply
    • SaltLakeBrave

      1 month ago

      Major League Baseball is dealing with the strongest Union in sports and one of the strongest in the nation. The players are united in their ranks of no cap. It’s not going to happen. The NFL can do anything they want due to the fact that their players union is a joke. Not so in baseball. There may not be baseball in 27, but I would bet everything I have, that when baseball returns in 28, the only thing you’re going to see is a tough competitive tax.

      6
      Reply
      • Big whiffa

        1 month ago

        They have to do something. What is the point of fining a team if no amount of money matters

        3
        Reply
        • DroppedThirdStrike

          1 month ago

          It’s not fining them to make them stop, it’s fining them to make them pay. And they do.

          The system works. They’re just gonna adjust the penalties

          3
          Reply
        • mrkinsm

          1 month ago

          Why do they have to do something? Their revenues have never been higher.

          2
          Reply
      • DroppedBallFour

        1 month ago

        That’s fine. I can live with a tough competitive tax that increases penalties based on aav of contracts before deferrals are applied.

        Dodgers want to run a 500-600 mill payroll that’s fine. They need to be taxed and penalized at that amount.

        Instead they’re running a 500-600 mill payroll but only taxed at 300 mill cause deferrals.

        MLB needs to adjust how cbt is calculated OR limit how much a team can defer (10% of the first cbt tax line) per season.

        Reply
      • seamaholic 2

        1 month ago

        Don’t think the players are united. The players are deeply divided along veteran-free agent level earners vs arb and pre-arb and minor league earners. The latter completely rebelled last year.

        Reply
    • DirtyWater04

      1 month ago

      Cap isn’t necessary. If crazy billionaires want to go all out trying to win, let them. Better than using that money to lobby Congress or something.

      The issue is that in any given year there’s anywhere from 10 to 20 teams that are not even trying to put a watchable baseball team on a field. They need to be forced to spend.

      When the problem is cheap you-know-whats like John Henry crying about having to give 4+ years to highly sought after free agents or the Pirates trying to field an entire roster that costs the same as Shohei Ohtani, the problem is best addressed by forcing those teams to spend more, not by forcing other teams to spend less.

      1
      Reply
      • seamaholic 2

        1 month ago

        The Red Sox spend plenty. The Pirates have maybe – MAYBE – $40 or $50m more to spend before they start hemorrhaging money. Get real.

        Reply
        • DirtyWater04

          1 month ago

          Im absolute terms, yes, the Soz do spend a lot. So is Henry actually as big of an issue as owners like Nutting, Pohlad, Fischer, etc? No, not quite. But relative to what they can afford to spend, and owe it to their fans to spend based on how much they charge for tickets, TV packages, yadda yadda yadda, Henry is absolutely a prolific tightwad.

          Reply
    • mrkinsm

      1 month ago

      No. And it’s not just the players against it. Do you really think those 10 teams want to be limited in spending? Do you really think the bottom 10 owners want to spend more (and forego revenues from the 10 over spenders)?

      1
      Reply
      • DirtyWater04

        1 month ago

        Too bad. If you want to make money off of revenue generated by someone else then go start a REIT or something. It should not be too much to ask for to expect the owners of a baseball team to care about the baseball product more than they care about squeezing every last penny for themselves out of their cash flows.

        Reply
  6. YankeesBleacherCreature

    1 month ago

    Christmas morning came early for the Marlins’, White Sox’, Rays’, Pirates’, and A’s owners. They partying it up tonight!

    5
    Reply
  7. The Saber-toothed Superfife

    1 month ago

    What’s a dlag?
    A deferred flag or just a Dodger thing?
    I’m confused.

    4
    Reply
  8. geofft

    1 month ago

    So… the Mets don’t receive draft pick compensation for losing Alonso. Anybody know the reason for that? (Key word there is “know”. Sorry to sound callous, but I’m not interested in random guesses)..

    1
    Reply
    • horaceallen

      1 month ago

      He was not given the QO. He had been QO’d last year and could not be QO’d again.

      4
      Reply
    • Simm

      1 month ago

      They gave him a QO last offseason. Can only get it once.

      3
      Reply
    • Krlnd

      1 month ago

      Geofft,

      Alonso was previously tendered a QO after the 2024 season, so he was ineligible to receive one after this past season.

      2
      Reply
    • Tom

      1 month ago

      He could not receive a qualifying offer because he received one last year. Players can only receive one once in their careers. If a player does not receive one (for whatever reason), the team losing him is not entitled to draft compensation.

      2
      Reply
    • Zippy the Pinhead

      1 month ago

      I know this sounds like a random guess, but I read somewhere that he received a qualifying offer last season, which is why he couldn’t be offered one this season. I believe I’ve also read that a player can only get a qualifying offer once. But it’s just a guess. A random one at that.

      1
      Reply
  9. freddiemeetgibby

    1 month ago

    Look at all the welfare money the dodgers are paying to the other teams that are cheap. And somehow this is the dodgers problem?

    12
    Reply
    • horaceallen

      1 month ago

      Seriously.

      4
      Reply
    • Longinus

      1 month ago

      Not LAD’s problem, but MLB’s problem. And it’s nothing new – very similar situation in the late 1990s and early 2000s with the Yankees, except now having a huge payroll is more punitive so the Dodgers are willingly taking that much more hit to help buy a championship.

      3
      Reply
    • Big whiffa

      1 month ago

      LA is the 20th largest economy in the world. Japan is 5 and both those economies support the dodgers.

      3
      Reply
  10. Butters

    1 month ago

    Half goes to retirement fund. Who or what retired players are on this list? Certainly not players who exceed multi million dollar contracts?

    Reply
    • Tom

      1 month ago

      Every player who makes 10 years of service time gets a pension. Part of their contracts and nothing wrong with it.

      7
      Reply
      • Butters

        1 month ago

        Ok, so it’s evenly distributed to every retired player or those who made more get less and those who made less are eligible for more?

        Reply
        • Tom

          1 month ago

          I’m pretty sure it’s a set amount based on how long you played and when you start collecting. It’s pretty much like a regular pension…you start collecting when you’re about 65.

          4
          Reply
        • EndinStealth

          1 month ago

          Evenly depending on each years amount paid into it.

          2
          Reply
        • NashvilleJeff

          1 month ago

          Retired MLB players can begin collecting benefits as early as age 45 but waiting until age 62 maximizes the monthly payout. 10 years service time qualifies a player for maximum benefit (around $265K annually) though even less service time (43 days) provides a partial pension. 2.5% of maximum benefit accrued per 43 days up to 100% after 10 years.

          4
          Reply
    • highflyballintorightfield

      1 month ago

      $200 million a year for what must be no more than a few thousand retired players? That’s a big pool of money for someone to use or abuse. It would be great if the money was invested with Guggenheim Partners, It was mostly theirs to begin with, after all.

      1
      Reply
    • horaceallen

      1 month ago

      Yep, all members of the union (MLBPA). Retirement benefits are key to nearly all labor negotiations.

      3
      Reply
  11. This one belongs to the Reds

    1 month ago

    That amount split up between all the bottom teams doesn’t amount to a hill of beans for “competitive balance” considering the large local TV deals the payers are getting.

    However, I do think they need to ensure the tax payout goes to the payroll since that was the whole idea to begin with.

    2
    Reply
    • diphthong

      1 month ago

      Define bottom teams please. Is it anyone that didn’t make the playoffs AND exceed the luxury tax in a particular year? Is it payroll expenditures? Is it total $ profits or some red/black ratio?

      Reply
    • horaceallen

      1 month ago

      $200M is significant. I would not say that does not amount to a hill of beans.

      1
      Reply
      • This one belongs to the Reds

        1 month ago

        If you are splitting between 10, 12, 15 teams, it’s not. What’s an extra 20 million or less really getting you with the large market exploding salary structure? Do some basic math.

        3
        Reply
        • This one belongs to the Reds

          1 month ago

          Some teams lost 20-40 million a year already the last two seasons due to the RSN fiasco. You think the revenue sharing helped them gain anything at all?

          4
          Reply
        • horaceallen

          1 month ago

          No need to attempt to be condescending. $20M nets you a significant player.

          Reply
        • DroppedBallFour

          1 month ago

          20 mill nets you Merrill Kelley, a mid rotation arm at 37. Significant player my arse. In this economy?

          3
          Reply
        • mrkinsm

          1 month ago

          That’s just revenue from overage. All teams share 48% of their locals.

          1
          Reply
  12. casualfan

    1 month ago

    All the lower payroll teams get at least $200mil in revenue and merchandise sharing. It’s appalling to run a payroll lower than this.
    Bring on the payroll floor.

    4
    Reply
    • EndinStealth

      1 month ago

      All 30 teams are in the revenue sharing its just broken down by certain factors. No team is being paid 200 million.

      3
      Reply
      • mrkinsm

        1 month ago

        All 30 are probably getting at least that amount. It’s 48% of locals and 100% of all national tv.

        Reply
    • kcmark

      1 month ago

      You do realize there are more expenses than just player payroll. Coaching staff, business staff, scouting, plater development, travel etc. Players also receive per diem when on the road etc.

      2
      Reply
    • seamaholic 2

      1 month ago

      There are other costs besides player salaries.

      1
      Reply
  13. rhandome

    1 month ago

    Get rid of the luxury tax, implement a salary cap and a salary floor based on a percentage of revenue. Get rid of the qualifying offer and the caps on draft bonuses. Pay minor leaguers better and increase the MLB minimum. Bring back all my favorite players from my youth, and ban the Los Angeles Dodgers. Thank you for your attention in this matter.

    6
    Reply
    • diphthong

      1 month ago

      @rhandome Oh man…cap and floor based on a percentage of income…that would spawn an entire generation of forensic accountants. The financial permutations, gymnastics and contortions the ownership groups would be enticed to hide…er…display.

      1
      Reply
      • YankeesBleacherCreature

        1 month ago

        To take it a step further, a percentage of net income!

        1
        Reply
  14. Brew’88

    1 month ago

    Imagine there’s not payroll disparity, it’s easy if you try

    7
    Reply
    • Gwynning

      1 month ago

      Los Angeles Dodgers $417,341,608
      New York Mets 346,670,456
      New York Yankees 319,522,564
      Philadelphia 314,329,912
      Toronto 286,135,551
      San Diego 270,351,396
      Boston 248,859,139
      Houston 245,991,459
      Texas 241,380,966
      Atlanta 234,800,685
      Chicago Cubs 231,124,468
      San Francisco 225,357,291

      2
      Reply
      • Simm

        1 month ago

        That’s before the tax is added

        1
        Reply
        • Gwynning

          1 month ago

          Correct. Pure official payroll.

          1
          Reply
  15. SuperDuper

    1 month ago

    Wonder where the Mariners sit on the list?

    Reply
  16. Astros71

    1 month ago

    I wish the Astros would happily go over the luxury tax threshold, or rather extend their limits to the 281 million mark. I would like the Astros to set their limits at the 2nd threshold. But still, if you want to be cheap, you need a better farm.

    1
    Reply
    • Marty Murray

      1 month ago

      Astros cheat and should be black listed from baseball

      4
      Reply
  17. Dive_4_it_Dorn

    1 month ago

    Marlins are ruining baseball more than the Dodgers. Miami is a large market city and they are cheap as fück. Miami metropolitan has 6+ million people. Figure it out Sherman

    2
    Reply
  18. dopt

    1 month ago

    What happens to the tax money ? What does MLB do with it

    Reply
    • aj2005

      1 month ago

      It’s just like tariffs….paid by consumers. Then vanishes. 🤣

      3
      Reply
    • mrkinsm

      1 month ago

      It tells you in the article.

      1
      Reply
  19. Quinnap89

    1 month ago

    Woof, this continues its insane climb its only a matter of time before there is a salary cap

    2
    Reply
  20. straightuphonestguy

    1 month ago

    I don’t think there will ever be a cap or a floor; there’s too much money at risk for both parties. But if the CBT intends to softcap spending, the penalties don’t go nearly far enough. I wonder if an escalating progressive (regressive?) tax as a percentage of total revenue could work.

    3
    Reply
  21. Marty Murray

    1 month ago

    Absolute joke! The teams who care about winning get penalized but teams like the A’s and Colorado can continue to spend crap and get away with it. MLB does not need a cap it needs transparency and equality.. If the teams that are spending to the max get penalized then the teams that don’t should get penalized…. Nothing like tanking and not spending and getting first pick. MLB is a disaster

    3
    Reply
    • Aunt Chilada

      1 month ago

      You are aware that the big spenders are making significantly more money than everyone else too even after all their spending, right? They are not altruistic, benevolent billionaires. They are simply spending a similar or even lesser percentage of their massive revenue as everyone else. The revenue is just so much higher, simply based on their geographic location. They’re not spending their own money.

      Get a clue. Comparing Milwaukee and Los Angeles for example, is less David vs Goliath and more Haiti vs the United States. And that goes for a bunch of others, Milwaukee is just the smallest market.

      1
      Reply
  22. Baseballisthebest

    1 month ago

    The owners justification for the CBT was to keep all except the top 2 or 3 teams from surpassing it at all. This many teams going over will incentivize the union to push for a much higher threshold if not to do away with it altogether.

    2
    Reply
    • DroppedThirdStrike

      1 month ago

      The justification for it was to make teams pay for going over it. If they go over it, they pay, which is the same as increasing player salary pools. Small market teams hugely benefit from this and would panic if it was threatened in any manner. They will of course advocate for additional penalties, which is all they can hope to negotiate for since they know the PA will NEVER agree to a cap.

      Reply
      • Baseballisthebest

        1 month ago

        The stated public justification was to deter all except the very highest revenue teams from going over the threshold. The teams mentioned by the owners on the executive committee were the Yankees, Dodgers, and Red Sox.

        Typically small market teams have not received much money because until Steve Cohen and now the Dodgers no team had gone beyond $40 million in penalties. There just wasn’t much in the pool and that money is shared with all teams that do not exceed the threshold, not just small market teams.

        Reply
  23. mike156

    1 month ago

    I realize I’m a Yankees fan and not unbiased but the system is more than a little Rube Goldberg and could use some clarity. If MLB really wants more from the richer teams, they could do it in a more straight-forward way. But that’s not the point, though–it’s to lower salaries–but it doesn’t really. It’s certainly does nothing for competitiveness. Nor does it keep home grown players at home to become franchise favorites.–if you really wanted to do that, you could create a pool to cover 50% of a homegrown but FA salary for lower revenue teams. I realize that this is what we get, but the distortions do the on-the-field product

    1
    Reply
    • YankeesBleacherCreature

      1 month ago

      That pool is not going to keep Paul Skenes with the Pirates in a few years. I’d imagine he also wants to win.

      1
      Reply
  24. carlos15

    1 month ago

    Baseball socialism

    Reply
  25. rememberthecoop

    1 month ago

    Taxation without representation!

    Reply
  26. The Saber-toothed Superfife

    1 month ago

    Put 2 more teams in LA and another in NYC.

    2
    Reply
    • Big whiffa

      1 month ago

      And one in Tokyo

      1
      Reply
  27. twozero6ix

    1 month ago

    Dodgers luxury tax bill is higher than the bottom 3 teams spending combined…

    Reply
  28. Probably "Rick hahn"

    1 month ago

    Things the white Sox will NEVER be in danger of thanks to cheap Jerry!

    Reply
  29. kingsfan1968

    1 month ago

    Go Dodgers!

    Reply
  30. Sabermetric Acolyte

    1 month ago

    Just a note about payroll disparity. Yes, money matters and it helps. Six of baseballs top ten payrolls made the playoffs. But three of the bottom ten also made the playoffs.

    Yes I’m making fun of the Mets.

    The reality is it matters more how the money is spent.

    1
    Reply
    • Brew88

      1 month ago

      While what you said is true, 16 of the past 17 WS winners have been top 8 payroll teams. Not a coincidence

      5
      Reply
  31. HalosHeavenJJ

    1 month ago

    Without deferrals the Dodgers tax number would be well north of $200 million.

    I think the next CBA needs to have the luxury tax both calculated at dollars divided by years paid and be put into a fund the smaller market teams can only use on payroll.

    If we forced Nutting and co to spend revenue sharing and luxury tax revenues that would create a floor. If the deferral loophole is closed that pulls back on the big market teams without creating a hard cap.

    1
    Reply
    • DroppedBallFour

      1 month ago

      Great ideas

      Crazy thing is you can just offer your young players early contracts with that money lock up core pieces long term which then leaves less guys to hit markets which should even out play fields

      1
      Reply
  32. Citizen1

    1 month ago

    Is mlb going to release a minimum floor salary report? How about a report to show where which recipients of the luxury tax spent their funds?

    Reply
  33. Juggy127

    1 month ago

    Baseball, is boring enough. Why would you want to have a salary cap? Every owner has enough money to buy what they want in this world, including players.

    Reply
  34. 920falcon

    1 month ago

    When the Dodgers pay more than the Mets and Yankees combined, you sort of throw your hands in the air.

    4
    Reply
  35. knolln

    1 month ago

    Heh wimper and cry poor, yes surely prioritizing 200k, and being on the hook next year for higher taxes is worth…. I’m struggling here. The hell are my rangers doing, toying with competitiveness, two of the games best in seager and degrom….not a lot coming in the next 3 year window save walcott, not sure we can afford anything… We’re kinda on the edge, let’s go all in, pick up a 4 starter when we need offense, screw ourselves for next year, but those 81 wins and mid first round pick sound great! What the hell is that?

    Reply
  36. rodcarewfan

    1 month ago

    Can the Dodgers defer that payment?

    Reply
    • Astros71

      1 month ago

      No

      Reply
  37. smuzqwpdmx

    1 month ago

    Every offseason, let’s have a lottery. The bottom ten teams by record are elligable IF they’re not a luxury tax payor. The winner gets the whole luxury tax revenue share that season (and throw in an additional amount TBD from the other sources of revenue sharing which are actually much larger), but it can only be spent on contracts signed that winter, and any amount not spent is forfeited. If say the Pirates win a pool of $500M, they have to spend that on players that winter. They can go on a free agent frenzy with one year contracts, they can sign one guy to a 10 year $500M contract, they can give extensions to their current players and not touch free agency, as long as all the contracts are signed before pitchers and catchers report.

    This way owners can’t reliably rake in profits every year by tanking, player salaries benefit, and fans of teams with cheap owners get the occasional exciting bonanza and a sliver of hope at the beginning of each offseason.

    1
    Reply
  38. Salzilla

    1 month ago

    Mixed feelings.

    On one hand the taxes are a joke and teams not spending should equally get some sort of penalization. If not taxes, forfeiture of top draft picks so they do not tank.

    On the other, if you’re going to not care that you have that much of an advantage over other teams monetarily then I do think you need this penalty.

    If there’s a cap and a floor though how do you enforce it in a way that absolutely will dead stop teams from going over/under? How about rosters need to freeze by a certain time before schedules are out and if you aren’t within the cap/floor your season is forfeited? Losing a full season gate will surely put an end to any of this nonsense.

    1
    Reply
    • 920falcon

      1 month ago

      As everyone knows, the players will never go for a hard cap or any cap, for that matter. One solution might be preventing deferrals from deflating the tax implications. In other words, a 700 million contract gets taxed for 700 million, regardless of when or how the money is dispersed. This might be a non-starter for the players, too, and possibly several owners.

      Reply
      • DroppedThirdStrike

        1 month ago

        Fans are the only ones with issues regarding deferrals. Players, their agents, their union, MLB, and all owners agree that it’s a non-issue and has zero impact.

        Will not even be brought up in CBA discussions

        Reply
  39. Nettles 9

    1 month ago

    I wish they would give at least a quarter of this money to a great charity, or create one of their own, maybe focused on children. Partialy for sick children in need and another portion to impoverished neighborhoods for playgrounds and playing fields and parks, both home and abroad where high percentages of ballplayers come from (DR, VZ). Also nutrition assistance and education program for children, including health education & excercise programs. You get the jist. It would be good PR for MLB, but more importantly, do some good with this money that really doesn’t belong to anybody. I mean billions in just few years could go a long way to improving so many young lives.

    Reply
    • Another Dodgers Fan

      1 month ago

      There are a lot of team and player run charities that address childrens issues.

      Reply
  40. Captainmike1

    1 month ago

    Unless Yankees are number one the Yankee fans will be complaining

    Reply
  41. baseballfan90

    1 month ago

    I can’t wait until there’s a cap and we won’t have to worry about this luxury tax nonsense anymore.

    Reply
  42. eaglephillies725

    1 month ago

    Shocker,Dodgers top payroll

    Reply
  43. Lemonade24

    1 month ago

    At least the Dodgers won the World Series. The Mets have nothing to show for it.

    Reply
  44. Qidon71

    1 month ago

    The best part is the Dodgers tv deal pays them $250 million per year. Money is not an issue.

    Reply

Leave a Reply Cancel reply

Please login to leave a reply.

Log in Register

    Top Stories

    Mariners Close To Acquiring Brendan Donovan

    Dipoto: Mariners Working On Another Addition

    Reds Sign Eugenio Suarez

    White Sox Acquire Jordan Hicks

    Giants, Luis Arraez Agree To One-Year Deal

    White Sox To Sign Austin Hays

    Twins Announce “Mutual” Parting Of Ways With President Of Baseball Ops Derek Falvey

    Athletics Extend Jacob Wilson

    David Robertson Announces Retirement

    Giants Sign Harrison Bader

    White Sox Sign Seranthony Domínguez

    Rockies Trade Angel Chivilli To Yankees

    MLB Sets August 3 Trade Deadline For 2026 Season

    Yankees Re-Sign Cody Bellinger

    Is MLB Parity Possible Without A Salary Cap?

    Guardians Agree To Extension With Jose Ramirez

    Yu Darvish Contemplating Retirement, Has Not Made Final Decision

    Nationals Rebuffed Interest From Giants In CJ Abrams

    Rangers Acquire MacKenzie Gore

    Brewers Trade Freddy Peralta To Mets

    Recent

    Mariners Close To Acquiring Brendan Donovan

    Guardians Re-Sign Kolby Allard To Minor League Deal

    MLB To Take Over Broadcasts For Six Additional Teams

    Players Who Could Move To The 60-Day IL Once Spring Training Begins

    Trade Rumors Front Office Subscriber Chat Transcript

    Angels Designate Cody Laweryson For Assignment

    Angels Outright Wade Meckler

    Dipoto: Mariners Working On Another Addition

    White Sox Notes: Hicks, Sandlin, Leasure

    The Opener: Red Sox, First Base, Arbitration Hearings

    MLBTR Newsletter - Hot stove highlights in your inbox, five days a week

    Latest Rumors & News

    Latest Rumors & News

    • Every MLB Trade In July
    Trade Rumors App for iOS and Android iTunes Play Store

    MLBTR Features

    MLBTR Features

    • Remove Ads, Support Our Writers
    • 2025-26 Top 50 MLB Free Agents With Predictions
    • Front Office Originals
    • Tim Dierkes' MLB Mailbag
    • 2025-26 Offseason Outlook Series
    • MLBTR Podcast
    • 2025-26 MLB Free Agent List
    • 2026-27 MLB Free Agent List
    • Projected Arbitration Salaries For 2026
    • Contract Tracker
    • Transaction Tracker
    • Extension Tracker
    • Agency Database
    • MLBTR On Twitter
    • MLBTR On Facebook
    • Team Facebook Pages
    • How To Set Up Notifications For Breaking News
    • Hoops Rumors
    • Pro Football Rumors
    • Pro Hockey Rumors

    Rumors By Team

    • Angels Rumors
    • Astros Rumors
    • Athletics Rumors
    • Blue Jays Rumors
    • Braves Rumors
    • Brewers Rumors
    • Cardinals Rumors
    • Cubs Rumors
    • Diamondbacks Rumors
    • Dodgers Rumors
    • Giants Rumors
    • Guardians Rumors
    • Mariners Rumors
    • Marlins Rumors
    • Mets Rumors
    • Nationals Rumors
    • Orioles Rumors
    • Padres Rumors
    • Phillies Rumors
    • Pirates Rumors
    • Rangers Rumors
    • Rays Rumors
    • Red Sox Rumors
    • Reds Rumors
    • Rockies Rumors
    • Royals Rumors
    • Tigers Rumors
    • Twins Rumors
    • White Sox Rumors
    • Yankees Rumors

    Navigation

    • Sitemap
    • Archives
    • RSS/Twitter Feeds By Team

    MLBTR INFO

    • Advertise
    • About
    • Commenting Policy
    • Privacy Policy

    Connect

    • Contact Us
    • Twitter
    • Facebook
    • RSS Feed

    MLB Trade Rumors is not affiliated with Major League Baseball, MLB or MLB.com

    Do not Sell or Share My Personal Information

    hide arrows scroll to top

    Register

    Desktop Version | Switch To Mobile Version