The Dodgers have certainly been busy this holiday shopping season. They’ve traded Matt Kemp, Dee Gordon, and acquired new middle infielders Jimmy Rollins, and Howie Kendrick. They’ve spent some cash acquiring starters Brandon McCarthy, and Brett Anderson, and they’ve rebuilt the bullpen.
But this last season is when the Dodgers have overtaken the Yankees for the record of highest spending team in Baseball. That breaks the Yankees 15 year streak of the biggest spenders, and most expensive payroll. The Dodgers had the highest payroll in MLB in 2014.
Call to the Pen
The Dodger’s payroll from 2014 is being reported as a little over 257 million dollars ($257,283,410). That’s about 20 million dollars more than the Yankees last year. If you add in the contracts for the entire 40-man roster, the Dodger payroll comes out to about 277 million dollars. The Yankee’s payroll topped out at about 225 million dollars last season. This means the Dodgers will have to pay a 30 percent rate on that figure. The Dodgers will owe 26.6 million dollars in luxury taxes for their record setting payroll obligations.
The luxury tax threshold is at 189 million dollars. This is the first time since 2003 that the Yankees haven’t paid the most into the player benefits growth fund. That record is now the Dodger’s.
The Tigers, Phillies, Red Sox, Angels, and Giants all finished in the top ten, and within ten million dollars of the luxury tax threshold. The Tigers finished with 187 million, the Phillies and Boston each finished at 186 million, and the Angels and Giants each finished with 180 million dollars of payroll.
Will the Dodgers be the highest spenders in 2015 again? If they do, their luxury tax rate will increase from 30-40% for next season.