tululush
New member
Did the Dodgers exceed the salary cap before this year?
The Dodgers payroll right now is 234 million.
If you exceed the luxury tax, you have to pay the following as a competitive balance tax:
20 percent tax on all overages. A club exceeding the threshold for a second consecutive season will see that figure rise to 30 percent, and three or more straight seasons of exceeding the threshold comes with a 50 percent luxury tax.
And here are limits. I'm not sure if this is their first time over the luxury tax or not.
2017: $195 million
2018: $197 million
2019: $206 million
2020: $208 million
2021: $210 million
If this is their first time they will have to pay 24 million x 20% or 4.8 million. So basically they said f it, we'll pay Bauer 40 million this year and just figure out where to find the extra 5 million.
Now let's say they sign Turner for 15 million, their tax would be 39 million x 20% or 7.8 million. Peanuts to them in the grand scheme of things. Where things get hairy is if they keep doing this. If they get to 50% that tax gets expensive real fast.
But my previous point still stands: mlb needs a hard salary cap. These teams that have a annual salary of 200+ million do not care about an extra 5-10 million in taxes. They wrap that overage into their operating budget.
The Dodgers payroll right now is 234 million.
If you exceed the luxury tax, you have to pay the following as a competitive balance tax:
20 percent tax on all overages. A club exceeding the threshold for a second consecutive season will see that figure rise to 30 percent, and three or more straight seasons of exceeding the threshold comes with a 50 percent luxury tax.
And here are limits. I'm not sure if this is their first time over the luxury tax or not.
2017: $195 million
2018: $197 million
2019: $206 million
2020: $208 million
2021: $210 million
If this is their first time they will have to pay 24 million x 20% or 4.8 million. So basically they said f it, we'll pay Bauer 40 million this year and just figure out where to find the extra 5 million.
Now let's say they sign Turner for 15 million, their tax would be 39 million x 20% or 7.8 million. Peanuts to them in the grand scheme of things. Where things get hairy is if they keep doing this. If they get to 50% that tax gets expensive real fast.
But my previous point still stands: mlb needs a hard salary cap. These teams that have a annual salary of 200+ million do not care about an extra 5-10 million in taxes. They wrap that overage into their operating budget.