The Los Angeles Dodgers topped a record nine teams owing Major League Baseball’s (MLB) luxury tax this year with an unprecedented US$103 million penalty, and the US$97.1 million bill for the New York Mets raises their tax total under high-spending owner Steve Cohen to nearly US$229 million.
The World Series champion Dodgers would pay a tax for the fourth year in a row. The Dodgers’ tax payroll of US$353 million included US$1,032,454 in non-cash compensation for Shohei Ohtani, whose contract calls for the use of a suite for games at Dodger Stadium and an interpreter.
The Yankees owe US$62.5 million, according to figures finalized on Friday by the MLB and the players’ association. They were followed by Philadelphia (US$14.4 million), Atlanta (US$14 million), Texas (US$10.8 million), Houston (US$6.5 million), San Francisco (US$2.4 million) and the Chicago Cubs (US$570,000).
Photo: AP
The total tax of US$311.3 million topped the previous high of US$209.8 million last year, when eight teams paid. Tax money is due to MLB by Jan. 21.
More than US$1 billion in taxes have been collected since the penalty started in 2003, with 15 teams paying US$1.23 billion. The Yankees lead at US$452 million, followed by the Dodgers at US$350 million and the Mets.
Toronto, with a series of summer trades, cut its tax payroll to US$233.9 million, under the US$237 million threshold. The Blue Jays started the season projected at US$244.3 million.
The Mets dropped their luxury tax payroll from last year’s record US$374.7 million to US$347.7 million and cut their tax from last year’s then-record US$100.8 million. The Dodgers, Mets and Yankees (US$316.2 million) were the only teams exceeding the fourth threshold, added in the 2022 labor contract and nicknamed the Cohen Tax in an initiative aimed at slowing his spending.
Among teams paying the tax, the Giants, Rangers and Cubs missed the playoffs.
Total spending on luxury tax payrolls rose 2.3 percent to US$5.924 billion from US$5.793 billion last year.
Tax payrolls are calculated by average annual values, including earned bonuses, for players on 40-man rosters along with just over US$17 million per team for benefits and US$1.67 million for each club’s share of the US$50 million pool for pre-arbitration players that started in 2022. Deferred salaries and deferred bonus payments are discounted to present-day values.
As they owe tax for three straight years, the Mets, Dodgers, Yankees and Phillies pay at a 50 percent rate on the first US$20 million above the US$237 million threshold, a 62 pecent rate on the next US$20 million, a 95 percent rate on the amount from US$277 million to US$297 million and a 110 percent amount above that.
Next year’s initial threshold is US$241 million. If the Mets, Yankees, Dodgers, Phillies. Braves or Rangers go over, they would pay at the highest tax rate, rising to 110 percent for the amount over US$301 million.
While British star Jack Draper spent the past week trying to find rhythm and comfort in his first grass tournament of the season at the Queen’s Club Championships in London, Jiri Lehecka on Saturday bulldozed everything in his path. After more than two furious hours of battle, their form was reflected in the final scoreline as Lehecka toppled a frustrated Draper, the second seed, 6-4, 4-6, 7-5 to reach the biggest final of his career, against Carlos Alcaraz. Lehecka is also the first Czech to reach the men’s title match at Queen’s since Ivan Lendl lifted the trophy in 1990. Draper, who
REUNION: Former Barcelona players Luis Suarez, Lionel Messi, Sergio Busquets, Jordi Alba and Miami coach Javier Mascherano are to face their former coach Luis Enrique Inter Miami’s Lionel Messi faces a tantalizing reunion with former club Paris Saint-Germain in the FIFA Club World Cup last 16 after both sides on Monday progressed to the knockout phase. Miami drew 2-2 with Palmeiras to go through second in Group A, after the Brazilian side fought back from two goals down to seal top spot. They now face an all-Brazil clash against Botafogo, who lost 1-0 to Atletico Madrid, but progressed from Group B in second at the expense of the Spaniards. Champions of Europe PSG won the group with a 2-0 victory over Seattle Sounders, paving the
Dale Earnhardt Jr might already be NASCAR’s most popular crew chief. He is certainly an undefeated one. Pressed into unexpected service, Earnhardt on Saturday called the shots for 18-year-old prospect Connor Zilisch in the No. 88 Chevrolet, as they landed in victory lane in the second-tier Xfinity Series race at Pocono Raceway. “It felt good to have some input and decisionmaking power,” Earnhardt said. “And then helping Connor understand what our plan was so he knew when to push and what he was expected to do.” Earnhardt — who won NASCAR’s most-popular driver award 15 times — made a pit stop from his
Taiwanese women’s doubles star Hsieh Su-wei and Australian teenager Maya Joint on Tuesday eased into the Eastbourne Open quarter-finals in England as Hsieh prepares for the Wimbledon Championships next week. Four-time Wimbledon women’s doubles champion Hsieh and 19-year-old Joint fired two aces and converted five of eight break points to defeat Japan’s Shuko Aoyama and Poland’s Katarzyna Piter 6-3, 6-3 in 58 minutes on the grass court. Hsieh and Joint are today to face fourth seeds Barbora Krejcikova of the Czech Republic and Latvia’s Jelena Ostapenko, who advanced on Monday with a 6-4, 6-3 victory over Quinn Gleason of the US and