The Los Angeles Dodgers exceeded the luxury tax each season from the 2013-2017, then curtailed some of their spending to remain below the threshold for 2018, 2019 and 2020.
L.A. came close to facing the prospect of paying a competitive balance tax last year, but all teams were granted a reprieve due to the unique circumstances surrounding the COVID-impacted season.
The Dodgers led all teams this year with a $285,599,944 payroll, which is the second-highest in MLB history behind their $291 million in salary that was on the books in 2015.
In exceeding the $210 million luxury tax threshold for the 2021 season, the Dodgers owe $32.65 million for the overage, according to Ronald Blum of the Associated Press:
The Dodgers were hit with a $32.65 million luxury tax bill Monday as the sport resumed penalizing big spenders after a one-season suspension of the tax due to the pandemic.
The San Diego Padres were the only other club to go into the competitive balance tax territory, though only face a $1.29 million bill. Luxury tax payments are due to MLB by January 21, 2022.
The Dodgers are first-time offender due to resetting their CBT penalties in prior seasons and thus were taxed at 20% for the first $20 million over $210 million, 32% on overages from $230-$250 million, and 62.5% for every dollar spent above $250 million.
The Dodgers were thrust into the luxury tax this year by signing Trevor Bauer to a three-year, $102 million contract; and retaining Justin Turner on a two-year, $34 million contract.
Dodgers luxury tax history
Since 2013, the Dodgers have exceeded the competitive balance in six of those seasons. They paid an MLB record $43.7 million luxury tax bill in 2015, but their $32.65 million ledger this year is only third-most.
In addition to a monetary penalty, the Dodgers now have their first pick in the 2022 MLB Draft pushed back 10 spots and to 40th overall.
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