"Top-Ranked Dodgers Lead MLB in Luxury Tax Payments"
The World Series was won by the Los Angeles Dodgers, and now they are footing the bill.
According to reports from ESPN and USA Today, a record-breaking nine MLB teams have been hit with luxury tax bills, with the champions topping the list.
Los Angeles was charged a $103 million penalty for their payroll of $353 million, far exceeding the $237 million threshold for triggering the luxury tax.
The next four teams with the highest luxury tax bills were also playoff contenders: the New York Mets ($97.1 million), the New York Yankees ($62.5 million), the Philadelphia Phillies ($14.4 million), and the Atlanta Braves ($14 million).
In sixth place were the 2023 World Series champions, the Texas Rangers, who did not make the playoffs in 2024 and were charged $10.8 million. The Houston Astros, who made the playoffs this year but ended their streak of seven consecutive trips to the American League Championship Series, were seventh with a $6.5 million bill.
The last two teams on the luxury tax list, the San Francisco Giants ($2.4 million) and the Chicago Cubs ($570,309), both failed to make the playoffs.
The total amount of luxury tax due, $311.3 million, is a new record.
A tax rate of 50 percent was applied to the Dodgers, Mets, Yankees, and Phillies for exceeding the prescribed salary figure for three consecutive years. The rate was 30 percent for Atlanta and Texas for being on the list for two consecutive years. The three newcomers, Houston, San Francisco, and Chicago, were charged a 20 percent rate.
Additional taxes were added for teams that exceeded other benchmarks above the $237 million level.
The luxury tax proceeds are divided among player benefits, player retirement funds, and revenue sharing for clubs.
