Analysis: Three MLB franchises responsible for majority of historic $311M in luxury tax payments
The three franchises in the two primary markets will be responsible for over 84 percent of the $311.31 million in luxury taxes imposed by Major League Baseball.
According to Front Office Sports, nine teams are required to pay a tax, with the Los Angeles Dodgers ($103 million) and the New York teams - Mets ($97.1 million) and Yankees ($62.5 million) - receiving the largest bills for 2024.
This amount surpasses last season's record of $237 million and also sets a new record for the number of teams owing a tax.
Teams have until Jan. 21 to settle their debts.
Also on the list of teams owing money, as reported by Front Office Sports, are the Philadelphia Phillies ($14.3 million), Atlanta Braves ($14 million), Texas Rangers ($10.8 million), Houston Astros ($6.5 million), San Francisco Giants ($2.4 million), and Chicago Cubs ($600,000).
The Dodgers' position at the top of the list is not unexpected, given their spending spree leading up to the 2024 season. They signed Shohei Ohtani, who was named National League MVP, to a 10-year, $700 million contract, and right-hander Yoshinobu Yamamoto for 12 years and $325 million.
The Mets can likely anticipate a tax increase next year after signing free agent Juan Soto to a 15-year, $765 million contract earlier this month.
The luxury tax, officially known as the competitive balance tax, is imposed on teams with a payroll that exceeds a predetermined threshold. The tax rate increases based on the number of consecutive seasons a team exceeds the threshold, which was $237 million in 2024.
This threshold will rise to $241 million next season.
