The Los Angeles Dodgers were hit with a $32 million luxury tax on Thursday, after exceeding the league's payroll threshold for the second straight year.
They are one of six teams to pay the premium penalty as baseball rebounds from the lockout, recording $4.56 billion during the 2022 season. The other teams paying the penalty are the New York Mets, Philadelphia Phillies, New York Yankees, San Diego Padres and Boston Red Sox.
The Dodgers were assessed at a higher rate as they exceeded the threshold for the second straight year, and owe exactly $32.4 million on a luxury tax payroll of $293.3 million. They were charged $32.6 million in 2021. Any money that the team saves from Trevor Bauer's suspension under the domestic violence policy will be reflected in the team's 2023 payroll.
Total spending based on regular payrolls rose 12.6 percent from $4.05 billion in 2021, the lowest in a fully completed season since $3.9 billion in 2015, according to ESPN. The previous high of just under $4.25 billion was set in 2017, also the first year of a collective bargaining agreement.
Article Continues BelowPer ESPN, last season's four tax thresholds were $230 million, $250 million, $270 million and $290 million.
First-time offenders are forced to pay 20 percent on the amount above the first threshold, 32 percent above the second, 62.5 percent above the third and 80 percent above the fourth. Since the Los Angeles Dodgers were repeat offenders, along with the Padres, they must pay 30 percent above the first, 42 percent above the second, 75 percent above the third and 90 percent above the fourth.
Regular payrolls are based on 2022 salaries, earned bonuses and prorated shares of signing bonuses for 40-man rosters, per ESPN. The Dodgers have been taxed $215 million since the penalties began.
All tax money is due to the MLB by this Friday, Jan. 20.