TL;DR - Scouting Report
The Dodgers are projected to pay a record $54M in luxury tax, far surpassing other teams, showcasing their big-spending strategy for sustained success.
Start the Rally: Tweet This Now!One of the criticisms of a big-market franchise like the Dodgers winning a World Series championship is that they bought the ring. In 2024, the Dodgers held the fifth-highest payroll, and of the four teams remaining in the NLCS and ALCS, were actually ranked number three of four.
Spotrac shows that they will be taxed the most in 2025, though, and it won’t be close.
What stood as a payroll of $240.2 million in 2024 and a roster with an average age of 30.4, the Dodgers go from trailing the Mets (highest payroll in 2024 with $314.7 million) and the Yankees (second-highest payroll with $308.6 million) to the third-highest payroll at the moment of $226.5 million and an average age of 32.3 years old.
But let’s talk about how the Dodgers will get taxed above the rest – like $47 million more than the next team.
| Rank | Team | Estimated Opening Day Tax Payroll | Active |
| 1 | Dodgers | $334,729,247 | $290,682,581 |
| 2 | Phillies | $287,583,770 | $231,187,104 |
| 3 | Yankees | $286,563,333 | $219,236,667 |
| 4 | Mets | $251,991,718 | $202,855,052 |
| 5 | Padres | $244,645,678 | $150,812,012 |
This calculates to an estimated tax bill of $54 million for the Dodgers. They sit just under $71.5 million under the tax threshold of $241 million.
Their tax bill only goes up by a little over $4 million. The Mets actually go down about $100 million in tax money.
But the next time a fan tells you that the Dodgers buy their World Series rings, you can reply, yeah, and they also pay the tax that comes with building a winner.
Your Turn: Is there any reason to believe the Dodgers spending big on a tax bill is a bad strategy for club success? Tell us your thoughts below in the comments!
