Report: 3 MLB teams paying bulk of record $311M in luxury taxes
Dec 26, 2024, 7:38 AM
(Photo by Carmen Mandato/Getty Images)
(Photo by Carmen Mandato/Getty Images)
The three teams in the two biggest markets will pay more than 84 percent of the $311.31 million in luxury taxes assessed by Major League Baseball.
Front Office Sports reported Tuesday that while nine teams owe a tax, it’s the World Series champion Los Angeles Dodgers ($103 million) and the New York teams — Mets ($97.1 million) and Yankees ($62.5 million) — who are receiving the biggest tax bills for 2024.
The amount of the tax exceeds the previous record of $237 million, set last season, and also sets a record for the number of teams owing a tax, per the report.
Teams have until Jan. 21 to pay the bill.
As confirmed by the @AP, MLB had 9 teams over the $237M luxury tax threshold in 2024, led by the #Dodgers, who will pay an historic $103M bill.
2 teams (Texas & San Francisco) stand as tax-payers despite holding a losing record last season.https://t.co/X1n0nrdRIW pic.twitter.com/PiNohktASg
— Spotrac (@spotrac) December 21, 2024
More on the MLB luxury tax report for 2025
Also owing money, according to 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’ standing atop the list is no surprise, given their spending spree ahead of the 2024 season. They signed Shohei Ohtani, who won National League MVP honors, to a $10-year, $700 million contract, and right-hander Yoshinobu Yamamoto for 12 years and $325 million.
The Mets likely can expect a tax hike 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 assessed to teams that have a payroll above a predetermined threshold. The tax rate goes up based on how many consecutive seasons a club goes over the threshold, which was $237 million in 2024.
That amount will rise to $241 million next season.
–Field Level Media
More MLB content from Sactown Sports
As news of the passing of baseball legend Rickey Henderson spread Saturday, former teammates, players and others affiliated with the game expressed their condolences and shared their memories.
Henderson, a 10-time All-Star and the all-time stolen base leader, died on Friday at age 65 after a bout with pneumonia, multiple outlets reported.
“For multiple generations of baseball fans, Rickey Henderson was the gold standard of base stealing and leadoff hitting,” MLB commissioner Robert D. Manfred said. “Rickey was one of the most accomplished and beloved Athletics of all-time. He also made an impact with many other Clubs during a quarter-century career like no other. Rickey epitomized speed, power and entertainment in setting the tone at the top of the lineup. When we considered new rules for the game in recent years, we had the era of Rickey Henderson in mind.
“Rickey earned universal respect, admiration and awe from sports fans. On behalf of Major League Baseball, I send my deepest condolences to Rickey’s family, his friends and former teammates, A’s fans and baseball fans everywhere.”
Typified by an everlasting love of the game, the “Man of Steal” was inducted in the Baseball Hall of Fame in 2009.
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