Dodgers Paying Highest Luxury Tax For 2021 Season

Originally published by DodgerBlue.com

The Los Angeles Dodgers exceeded the luxury tax each season from the 2013-2017, then curtailed some of their spending to remain below the threshold for 2018, 2019 and 2020.

L.A. came close to facing the prospect of paying a competitive balance tax last year, but all teams were granted a reprieve due to the unique circumstances surrounding the COVID-impacted season.

The Dodgers led all teams this year with a $285,599,944 payroll, which is the second-highest in MLB history behind their $291 million in salary that was on the books in 2015.

In exceeding the $210 million luxury tax threshold for the 2021 season, the Dodgers owe $32.65 million for the overage, according to Ronald Blum of the Associated Press:

The Dodgers were hit with a $32.65 million luxury tax bill Monday as the sport resumed penalizing big spenders after a one-season suspension of the tax due to the pandemic.

The San Diego Padres were the only other club to go into the competitive balance tax territory, though only face a $1.29 million bill. Luxury tax payments are due to MLB by January 21, 2022.

The Dodgers are first-time offender due to resetting their CBT penalties in prior seasons and thus were taxed at 20% for the first $20 million over $210 million, 32% on overages from $230-$250 million, and 62.5% for every dollar spent above $250 million.

The Dodgers were thrust into the luxury tax this year by signing Trevor Bauer to a three-year, $102 million contract; and retaining Justin Turner on a two-year, $34 million contract.

Dodgers luxury tax history

Since 2013, the Dodgers have exceeded the competitive balance in six of those seasons. They paid an MLB record $43.7 million luxury tax bill in 2015, but their $32.65 million ledger this year is only third-most.

In addition to a monetary penalty, the Dodgers now have their first pick in the 2022 MLB Draft pushed back 10 spots and to 40th overall.

Have you subscribed to the Dodger Blue YouTube channel? Be sure to ring the notification bell to watch player interviews, participate in shows and giveaways, and stay up to date on all Dodgers news and rumors!